The Grove, pictured above, opened a new retail phase in 2023 and continues to expand.
As of year-end 2023, Austin posted a strong occupancy level of approximately 96.8 percent, based on Weitzman’s review of retail market conditions. The percentage, the strongest among Texas’ major retail markets, is based on a market inventory of approximately 52.4 million square feet.
The market’s years-long trend of limited new construction also contributed to the tight market. And even though deliveries in 2023 resulted in the highest new construction total in seven years, the majority of new space was user-driven by concepts like grocery stores like H-E-B and power anchors like Costco.
During calendar-year 2023, new space deliveries totaled approximately 789,000 square feet in new and expanded projects with 25,000 square feet or more. The 2023 deliveries represent the highest new-space level since the market added 1.1 million square feet in 2016.