The Q1 2012 Austin Retail Market Statistics have arrived and show that the market is still on the upswing. Vacancy rates for Austin retail space dropped slightly this quarter to 5.5%, down from 5.6% last quarter and 5.7% this time last year. Average rental rates for the Austin area shot up to $18.42 SF before the inclusion of operating expenses (property taxes, insurance, and utilities). This number is up from $18.01 in the previous quarter. There was 106,829 sf of retail space introduced to the market and 432,994 that remains under construction this quarter. As vacancy rates continue to decrease and space becomes more limited, we suggest starting early on finding suitable options for your Austin Retail Space. Since landlords are not struggling to secure tenants into space they now have the ability to be more selective, meaning less negotiating power for tenants to receive concessions and tenant allowances. In the meantime, expect vacancy rates to continue to decrease and rental rates to increase.
Here are some other figures that help paint the picture for Retail Lease Rates in the Austin market. Keep in mind that these rates do not account for operating expenses ( see above) which are passed through to tenants and range from $6-$10 SF. Expect to pay anywhere from $28-$36 SF for retail space in the Austin Area.
Austin Average- $18.42 Downtown- $26.31 Cedar Park-$16.37 Central- $16.63 Far Northwest- $17.30 Northwest- $23.41 Round Rock- $17.63 Southwest- $22.06
For more information about leasing Retail Space in Austin give us a call at 512-861-0525.
