Austin Retail Market Report

Suburban growth nodes emerge. Austin’s multi-tenant vacancy fell below single-tenant for the first time in a decade last year, supported by limited deliveries. This trend should hold through early 2026. Multi-tenant vacancies may climb over single-tenant again, however, as new projects enter the market. Momentum should persist in supply‑constrained submarkets where recent vacancies leased within five months. Tenants are showing interest in space near Interstate 35 and the west side, where high income and transit access drive foot traffic. Austin is still expected to rank among the top 10 major markets for retail sales growth in 2026, even as job growth slows. Urban properties are likely to build on 2025 performance, with the CBD at sub-3 percent vacancy and above-market rent. Meanwhile, emerging nodes like Hays County and Pflugerville offer upside tied to housing development and migration.