The Q2 2012 Austin Retail Market Statistics are in and the retail market continues to be red hot. Vacancy rates for Austin retail space dropped slightly this past quarter to 5.4%, down from 5.6% Q1 2012 and 5.9% in the 2nd Quarter of 2011. The overall average base rental rate for the Austin area rose to $18.75 SF before the inclusion of operating expenses (property taxes, insurance, and utilities). The overall average rate for retail space rose $.29 from the previous quarter. During this quarter five retail locations were added to the market totaling 62,259 sf of new retail product. At the end of this quarter 430,779 sf of retail product remains under construction in the Austin area.
We expect rental rates to increase as vacancy rates become lower and lower. Our suggestion to you if you’re looking forretail space for lease in Austinis to begin your search early. The Austin Retail Market has become a landlords market, meaning that they have an upper hand in selecting their tenants and are offering fewer concessions and improvement allowances to tenants due to the high demand for retail space. Beginning your search early for retail space will give you greater leverage in your commercial lease negotiationand save you money by locking in a lower rental rate.
Here are some other Austin Market Retail Rates to give you a broader understanding of what is being quoted. Be sure to notice that these rates do not include triple net expenses (described above), which will typically be in the $6-$10 per square foot per year range. Expect to pay anywhere from $24-$37 psf/yr for retail space in the Austin area.
Austin Average- $18.75 Downtown- $26.70 Cedar Park-$16.67 Central- $17.50 Far Northwest- $16.43 Northwest- $23.17 Round Rock- $17.79 Southwest- $20.97