Even with the addition of over 1.2 million square feet of new retail space the Austin retail space market occupancy rate remains at almost 96%!
These numbers may improve in 2015 however that will only be because of some larger single tenant retail absorption. Even with Austin's residential growth there are no new major shopping centers planned anytime soon.
Some of the largest retail space projects planned for Austin include:
Lamar Union – Located at 1000 S Lamar Blvd this property is less than a mile from Lady Bird lake and is pretty much already leased up. Major tenants include Alamo Draft House & Highball.
Seaholm Low Rise – This property is located at 800 Cesar Chavez and was once the Seaholm Power Plant. Current major retail tenants are Trader Joes, True Food Kitchen.
For the smaller boutique tenants retail space seems to be hard to come by. To meet demand in this size we have seen a few 8,000 to 15,000 sf strip centers get built however these end up being fully leased before they complete construction.
If you are a small retail tenant needing less than 5,000 sf it's important that you start the process early……..at least 12-24 months before your desired move in date. The sooner you know about a new project the better!
Average retail space lease rates for smaller users (less than 5,000 sf)
- Class A – the newest and nicest retail centers with the best location are averaging $30 to $40 sf.
- Class B – older but nice retail centers average $18 to $25 sf
- Class C – These less appealing locations are averaging $14 to $18 sf