The overall retail occupancy rate bumped up to 96% at midyear from 95% at the end of 2000. Austin newcomers such as Kohl's, Costco and others will join existing retailers such as Target, Wal-Mart and Home Depot to add more space than the 1.5 million sf built in 2000, the report says.

"The overall market for retail space remains tight, as almost all the new construction in the past several years has been demand-based," according to the report. "Due to some scheduled closings in the second half of the year, more space will be coming onto the market; however, the current level of demand should ensure that the space is quickly re-leased."

The report notes that a Sam's Wholesale Club is taking the former Builder's HQ building in the South Town Centre in Sunset Valley; Fiesta grocery has taken space formerly occupied by City Market at Oltorf Street and South Congress Avenue; and Nordstrom's will take the abandoned Montgomery Ward's space at Barton Creek Square Mall in 2003.