Austin Retail Market Report
North Expansion Powers Standout Performances;
Retail Vacancy Rates are Among Top 10 Tightest
Pair of northern submarkets lead the charge. Local vacancy declines during the past year ended in the second quarter were recorded in 15 of Austin's 16 submarkets, with retail inventories of at least 2 million square feet. The Round Rock and Far Northwest Austin submarkets stood out, each eclipsing 350-basis-point reductions in availability, with corresponding double-digit percentage average asking rent jumps. Round Rock's proximity to North Austin employment hubs, as well as the quickly-expanding Interstate 35 corridor, will continue to drive population growth. Meanwhile, Far Northwest suburbs near Lake Travis are attracting relocating households desiring less urban density. The only exception to the marketwide vacancy contraction was a 30-basis-point rise in East Austin. This lift was largely outweighed by the area posting one of the strongest rent gains in the market, however, as major firms like Tesla aggressively enlarge staff counts and expand the local consumer base.