Market Insight | Austin Retail

Austin’s retail market continues to show resilience. In 2025, leasing velocity reached 3.4M SF, ranking #1 among the top 40 U.S. retail markets when measured as a percentage of inventory.

While store closures increased—driving 2.7M SF of move-outs, the highest since 2020—vacated, well-located spaces were often backfilled quickly and at higher rents. Fitness, food & beverage, and service-based tenants led demand, with strong activity across Cedar Park, Georgetown, South Congress, and East Austin.

New suburban construction absorbed a meaningful share of leasing, while rising build-out costs and cautious consumer sentiment modestly slowed overall volume year-over-year.

Looking ahead, Austin is projected to lead the nation’s large metros in retail sales growth through 2029—supported by population growth, income gains, and disciplined market reset.

📊 Source: CoStar Analytics: https://lnkd.in/gm23nhKj