Austin Retail Market Report

Population growth aids entertainment and fitness concepts. Austin’s retail sector will continue to benefit from the nation’s fastest-growing population, with the metro poised for 2.4 percent growth in 2025. This demographic momentum held vacancy among the 10 lowest major markets at 3.2 percent. Completions since then have roughly aligned with the trailing decade’s semiannual average, while net absorption has cooled, pushing vacancy up 40 basis points in the opening half. Still, leasing activity during the first six months of 2025 matched last year’s total, driven by commitments for spaces over 10,000 square feet from entertainment and fitness tenants.