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Market Report

Austin Retail Market Report

2024 Investment Forecast

Austin is Among U.S. Leaders in Nearly Every
Key Retail Metric, Commanding Investor Attention

Tenant demand mirrors that of larger markets. The metro is an in-migration hotspot and popular travel destination, fortifying a favorable retail outlook. A pandemic-era surge in the metro’s cost of living and recent slowdown in tech sector hiring has nevertheless briefly decelerated local economic momentum. Vendors are likely to scale back expansion plans in response, contributing to modest upward vacancy pressure this year. Although, the increasing rate is more so a byproduct of construction rather than soft demand, as Austin is projected to rank second-fastest nationally for supply growth in 2024. Despite easing relative to last year, net absorption will measure as the nation’s fifth strongest, an achievement made more impressive by the group of metros it joins on that list. Only Atlanta, Dallas-Fort Worth, Houston and Phoenix — which have two to four times as much inventory — will have stronger absorption. This helps Austin rank in the top 10 nationally for rent growth, solidifying its status as the highest cost major market to lease space outside of California, Florida and the Northeast. 
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