Austin retail overview 3Q 2012: Marcus & Millichap
AUSTIN - Marcus & Millichap relased its third quarter 2012 retail overview for the Austin area.
Austin’s economic picture is significantly stronger than immediately prior to the recession, with retail sales 15 percent greater than the last peak and payrolls have surpassed the prerecession high by more than 35,000 jobs.
Over the past year, employers in Austin expanded payrolls by 3.1 percent with the addition of 24,300 jobs. Growth accelerated during the first six months of 2012 as 15,600 positions were created.
Developers completed 250,000 sf of retail space in the year-long period ending in 2Q 2012, expanding inventory by 0.4 percent. More than 400,000 sf of retail space is under construction in the metro, with preleasing rates running close to 70 percent.
Marketwide vacancy fell to 8.5 percent in 2Q 2012. Over the past 12 months, asking rents declined 0.4 percent to $19.55 per sf. However, year-to-date asking rents are up 0.4 percent.
| Submarket | Vacancy Rate | Y-O-Y Basis Point Change | Effective Rents (psf) | Y-O-Y Change |
| Central / Downtown Austin | 5.6% | -140 | $17.64 | 0.2% |
| South Austin | 7.6% | 40 | $20.11 | 0.2% |
| Round Rock / Williamson County | 13.4% | -150 | $13.93 | -1.7% |
For more information, visit Marcus & Millichap Real Estate Investment Services.
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