Third Quarter, 2013 Austin Retail Market Overview

Marcus & Millichap have put together a great 3rd Quarter Market Report on the Austin retail market.  Highlights include:

1. Vacancy is maintaining a downward trajectory (expected to be 5.6% by year end) as tenant demand remains healthy.
2. Average asking rents by years end are expected to reach $19.21/sf/year up 1.4% from year end 2012.
3. Construction of new centers has added 360,000 SF this year compared to 690,000 SF last year.  An HEB and a Whole Foods are the largest projects with end of year slated openings.
4. Multi tenant properties continue to be difficult to acquire as long time owners enjoy healthy cash flow and exchange opportunities are few.
5. Single tenant property sales jumped by 63% as buyers chose to place capital into stable investments.