Absorption in Austin’s retail sector continued its downward slide in Q4 2020, registering (162,018) sq. ft. of net demand.
Market-wide occupancy held steady quarter-over-quarter at 94.6%. The average asking rate increased from $20.25 per sq. ft. in Q3 2020 to $20.50 per sq. ft. in Q4 2020.
As Austin enters Stage 5 restrictions due to increasing COVID-19 cases, many local establishments will have to continue adapting to lower occupancy levels and decreasing revenue streams.
Projects under active construction increased quarter-over-quarter by approximately 110,000 sq. ft. The Georgetown submarket continues to see the largest amount of development, driven almost entirely by a power center project called The Co-Op District which totals approximately 300,000 sq. ft. of space.