Austin Retail Market Report
Ingredients in Place for a Solid Retail Outlook;
Northeast Corridor Leading the Recovery
Economic growth reiterates retail prospects. Several underlying dynamics indicate retail fundamentals in Austin are poised for improvement. The employment base is nearing a full recovery from the pandemic, compared with some other markets that could still be a few years out. Businesses and residents have been relocating to the market in droves, supporting household creation and spending. Additionally, the metro has become one of the premium technology hubs in the nation, growing the pool of high-income earners residing in Austin. All of these factors aid the retail outlook, particularly with minimal supply-side pressure in the near term. The metro is expected to be one of the 10 least vacant major markets at the end of this year, which will support the fastest annual rent climb in Austin since 2017.