The demand for retail product is most prominent in the communities outside of Austin’s urban core, with approximately 720,000 sq. ft. of new product under construction in Cedar Park, Georgetown, and Hays County.
The holiday season brought to the Austin metro cooler weather as well as a robust spending season for retailers. As the Longhorn football season comes to a climax on New Years Day, foot traffic amongst retailers will slump throughout the winter months before the South by Southwest Festival returns to Austin in March.
Austin’s unemployment rate for October 2019 was 2.7%, the lowest unemployment rate in Texas and the 8th lowest rate nationwide among large metropolitan areas. The state’s overall unemployment remained 3.4%, while the national unemployment rate ticked down to 3.5%.
Market-wide occupancy slipped to 95.8% in Q4 2019 as the average asking rate increased to $21.50 per sq. ft. Absorption remained positive in Q4 2019, registering 47,191 sq. ft. of positive net demand.