Middle Market Digest: Mid-Week in the South and Mountain Regions

BY THE NUMBERS

AUSTIN, TX—Limited availability continues to constrict market activity as Austin’s class-A occupancy nears 98%. Class-A occupancy only registered down slightly during the final 90 days of 2017. Retailers aren’t just on the search for prime class-A space; overall occupancy is also high at 96.3%—the highest measured in Texas, according to CBRE. Net absorption continued to fall off peak levels registered in 2015, while new construction captured a large portion of demand—more than 150,000 square feet of the 247,000 square feet absorbed. Large blocks were occupied this quarter by fitness tenants, including Crunch Fitness and Orangetheory Fitness in addition to inline stores. CBRE econometric advisors forecasts Austin retail sales volumes to reach $29.7 billion in 2018, a 6% increase from 2017. Similar sales growth is projected to continue during the next five years at an annual rate of 5.6%, higher than the US average.