Austin Retail Market Report
Expanding Local Population Draws Necessity Retailers,
Keeping Austin Vacancy Regionally Tight
Austin leads Texas in population growth and retail space demand. For the 17th year in a row, the Austin metro will claim the fastest pace of year-over-year population growth among major U.S. markets. The rapidly expanding resident pool has contributed to an uptick in necessity goods retailers signing large leases here over the last decade. While recessionary fears may limit some expansion plans, space demand will continue through 2023, maintaining the lowest vacancy rate among major Texas markets through the end of 2023. The metro also claimed the fourth-lowest single-tenant vacancy rate among all major U.S. markets in June. Robust population growth and limited availability have led to a hefty construction pipeline. Deliveries are, however, generally concentrated in growing outer areas, corresponding to some of the lowest vacancy rates in the metro, like Hays County. One-third of new builds in 2023 will come online here, a tally warranted by a local 1.7 percent vacancy rate in June.