Absorption in Austin's retail sector continued its downward slide in Q3 2020, registering (426,428) sq. ft. of net demand.
Market-wide occupancy declined 60 basis points, falling from 95.2% in Q2 2020 to 94.6% in Q3 2020. The average asking rate fell from $20.50 per sq. ft. in Q2 2020 to $20.25 per sq. ft. in Q3 2020.
As Texas begins the slow process of reopening businesses, bars and restaurants will continue to struggle to survive the economic downturn.
Development activity began to slow down in Q3 2020, driven largely by the impacts of the pandemic. While current construction activity remained active, developers have been hesitant to kick off any new projects until the pandemic begins to ease and economic conditions begin to improve.