Austin retail market mid-year 2013: Weitzman/Cencor

AUSTIN – The area occupancy rate was 94.5 percent at mid-year 2013, compared to 94 percent at the end of 2012. Austin remains the strongest Texas major retail market in terms of overall occupancy, according to The Weitzman Group and Cencor Realty Services.

The occupancy rate is based on an inventory of about 42 million sf of multitenant retail space in centers with 25,000 sf or more, and the rate increase is partly due to vacancies being filled, including:

• 48,814 sf at Round Rock Crossing leased by Gander Mountain Co.;
• 30,000 sf in Lamar Oaks being filled by Grocer Wheatsville Co-op, opening in September 2013; and
• 11,500 sf in the Seaholm development in Rollingwood going to Trader Joe’s, opening in September 2013 at 2805 Bee Cave Rd.

Rental rates are on the rise after several years of flat or declining rates due to improving retail occupancy leading to a tight market for space in key trade areas.

Class A space rental rates are hitting $30 per sf per year in small-shop spaces, and average of $32 per sf for newly constructed space.

The Austin area retail market is on track to see about 564,000 sf of new space this year. In 2012 the market added about 462,800 sf in new and expanded retail projects.

New retail space for 2013 includes:

• Mueller Market District, with an 81,000-sf H-E-B and 26,000 sf of small-shop space;
• a 65,000-sf Whole Foods Market Inc. opening at The Domain in January 2014; and
• TopGolf, which opened a 65,000-sf location at 11301 Burnet Rd. in May 2013.

Read more at the Austin Business Journal.