CBRE: Demand for Austin retail staying strong

​​​​​​​AUSTIN – ​​​​​​Austin retail demand remained strong throughout the first half of 2017, absorbing 372,000 sf, according to CBRE’s second quarter 2017 market report.

Big box retailers such as Austin Couch Potato, Petco, and Rooms to Go all occupied large blocks contributing to positive net absorption in the central, northwest, and far northeast submarkets. As a result, occupancy increased ten basis points quarter-over-quarter, finishing well above the ten-year average of 94.4 percent.

"These healthy fundamentals have spurred more construction activity, which hasn’t been this elevated since 2013," CBRE’s report said.

The majority of recent development activity is strip centers and second phases of larger projects. The largest concentration of construction is in Round Rock with eight projects totaling 217,000 sf.

The largest projects are both mixed-use developments: Plaza Saltillo in East Downtown and Belterra Village in West Austin/Dripping Springs. Both developments are focusing heavily on entertainment and restaurant tenants.​