• 2009 NRI Rank: 10, Up 1 Place. Forecast household growth and only modest job cuts will support retail demand in Austin this year, allowing the market to move up one spot in the ranking.
• Employment Forecast: Employers are expected to cut 2,100 jobs this year, a 0.3 percent decrease. In 2008, 9,500 positions were added.
• Construction Forecast: Approximately 1 million square feet of retail space is forecast to be completed in 2009, following the delivery of 1.1 million square feet last year.
• Vacancy Forecast: Easing tenant demand and continued construction are expected to push vacancy up 140 basis points to 10.5 percent this year, after a 60 basis point rise in 2008.
• Rent Forecast: As vacancy creeps higher, asking rents are projected to dip 2.6 percent to $20.01 per square foot in 2009 while effective rents retreat 2.8 percent to $17.93 per square foot.
• Investment Forecast: In South Austin, tenant demand near Southpark Meadows has been robust in recent months. As retail space on the perimeter of the metro comes online over the next 12 months, however, owners will have to compete for tenants by offering leasing incentives.
RECENT RETAIL LEASES
Austin American Statesman, Thursday, May 14, 2009
• Third Base sports bar/restaurant leased 6,236 square feet at the Grove in Southpark Meadows, 9600 S. Interstate 35. This will be the third location for Third Base, which began on West Sixth Street and expanded last year to Round Rock.
Austin American Statesman, Thursday, May 7, 2009
• Austin Regional Clinic leased 15,500 square feet at the Market at Slaughter, 1807 Slaughter Lane.
• Antonio’s Mexican Restaurant leased 5,159 square feet at 12602 Research Blvd. It formerly was a Kerbey Lane restaurant.
Sprouts’ budding local presence grows with lease of 4th area site
Chain has stores planned in Rollingwood, Round Rock, Sunset Valley, Northwest Austin; negotiating fifth lease
By Shonda Novak, AMERICAN-STATESMAN STAFF, Friday, April 24, 2009
Sprouts Farmers Market, a natural foods chain that is moving into Central Texas, signed a lease for its fourth area store and is negotiating for a fifth site in Northwest Austin, local retail brokers said. Read more…