CoStar: Austin retail market 4Q 2014

AUSTIN – The Austin retail market experienced a slight improvement in market conditions in fourth quarter 2014.

The vacancy rate went from 5.1 percent in 3Q 2014 to 4.7 percent in 4Q 2014.

Net absorption was positive 303,447 sf, and vacant sublease space increased by 9,796 sf. In 3Q 2014, net absorption was positive 67,693 sf.

Tenants moving into large blocks of space in 2014 included LA Fitness moving into 46,245 sf at 4001 S. Lamar Blvd. and LA Fitness moving into 40,794 sf at Lacks Home Furnishings.

Quoted rental rates increased from 3Q 2014 levels, ending at $17.88 per sf per year.

Six retail buildings with 55,788 sf of retail space were delivered to the market in 4Q 2014, with 387,769 sf still under construction at the end of the quarter.

This trend is compared to the U.S. National Retail vacancy rate, which decreased to 6.1 percent, and with net absorption positive 34.91 million sf in 4Q 2014. Average rental rates increased to $14.90, and 561 retail buildings were delivered totaling almost 14.7 million sf.