Austin Retail Market Report
Flourishing Ecosystem of Technology Firms Underpin Incomes and Spending in Austin Suburbs
Expanding tech prominence favorable for retail. Austin’s aggressive incentive program has been effective, particularly in drawing technology transplants from the Bay Area. Google and Apple are pillars of the Silicon Hills evolution, which could accelerate as corporations migrate in for lower business costs, an abundance of educated workers and less stringent regulations. Growth in the sector will support more high-wage earners, pushing the median household income to an estimated $92,600 by 2025, 10 percent higher than both Dallas/Fort Worth and Houston. Retail spending should intensify in Cedar Park and East Austin as major commitments by Apple and Tesla come to fruition and fuel household formation in the coming years. Marketwide, the long-term strength of Austin’s economy is unquestioned. Nevertheless, the retail recovery will be uneven after seven submarkets recorded vacancy hikes of greater than 150 basis points last year.