AUSTIN – Healthy job growth and demographic trends are keeping retail vacancy near a ten-year low, according to Marcus & Millichap.
The report said migration to the market has been robust. Rising prices inside the city have encouraged growth in the suburbs, where retail construction has been concentrated over the past five years.
Marcus & Millichap predicts 1.1 million sf of retail space will deliver this year. High land, labor, and material costs have prompted a slowdown, and deliveries could fall to a six-year low in 2018.
The absorption of over 680,000 sf of retail space will push the vacancy rate up 20 basis points to 4.1 percent.
The report predicts a 3.5 percent increase in asking rent to $23.22 per sf.
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