The demand for retail product is most prominent in the communities outside of Austin’s urban core, with approximately 205,000 sq. ft. of new product under construction in Hays County and Round Rock.
One of the most significant events to occur during Q1 2020 for Austin was the cancellation of the much-loved South by Southwest festival due to COVID-19. In 2019, this festival drew approximately 417,400 attendees and had an economic impact of $355.9 million on the Austin economy.
Unemployment in the Austin metropolitan area fell to 2.6% in February 2020, well below the state average of 3.5% and the national average of 3.5%.
Market-wide occupancy increased to 96.0% in Q1 2020 as the average asking rate decreased to $20.75 per sq. ft. Absorption turned negative in Q1 2020, registering (3,310) sq. ft. of net demand.