Developers are encouraged by new rooftop growth as Austin’s retail market supply pipeline expands.
Market Highlights
Vacancy rate at 3.5%
Ten months into 2022, the overall vacancy in the Austin retail market is at a tight 3.5%, dropping 20 basis points from last year’s 3.7%. Availability is 4.7%, down 50 basis points from October 2021 at 5.2%. The difference between this figure and the vacancy rate reflects expected future move-outs. Leasing activity comprised of new leases and renewals decreased year-over-year at 1.9 million sq. ft. versus 2.3 million sq. ft., while net absorption (move-ins minus move-outs) is at 951,000 sq. ft., down 36% year-over-year from 1.5 million sq. ft.
Plans for a new Hobby Lobby in Pflugerville
Hobby Lobby Stores Inc. is building a 55,000-sq. ft. location at the southwest corner of Terrell Ln. and Town Center Dr. and is scheduled to open in 2024. The estimated construction cost is $4 million. Other retailers and restaurants in the area include The Home Depot, Target, Torchy’s Tacos, Chili’s Bar & Grill, In-N-Out Burger, Wingstop, and IHOP, among others. Hobby Lobby has eight stores in the Austin metro, including a recently opened South Austin location at 6600 S. MoPac Expressway., where it replaced prior tenant Randalls.
Retail and rooftops
In September, the Austin–Round Rock MSA housing market continued to return to normal activity with more available supply and a softer appreciation of home price growth, according to the Austin Board of REALTORS®. Home sales declined 18.5% to 2,992 closed listings as active listings were up 162.4% to 9,671 listings—the highest number of active listings in the MSA since July 2011. The. report went on to say that homebuyers no longer need to move at a frantic pace to find a home. Instead, as interest rates continue to rise, there are more homes to choose from and more time to find a home that works for their needs and budget.
Leta Wauson
Director of Research
[email protected]
tel 713 275 9618