Austin is left to find a new Tenant for the Corner Retail Suite as Foxtrot Ends its 10-Year Lease after Paying Only Three Months Rent

In a surprise turn of events, after only being in operation for less than a year, Foxtrot, the upscale convenience store, has terminated its 10-year lease with Austin City Hall, prompting the city to search for a new tenant and recover the remaining rent it’s owed. The Chicago-based retailer, chosen by the city back in 2022 to replace local coffeehouse Austin Java, closed without warning after just a few months of business.

A Brief History

Austin Java previously occupied the retail suite in question but chose to exit due to impacts from the coronavirus pandemic in 2020. This paved the way for Foxtrot to take over the premises, with the city expecting the brand to become a long-term fixture at City Hall. With arrangements in place for a 10-year lease with an option for two more five-year extensions, it’s safe to say the abrupt closure has come as a surprise to all involved.

Lease Details and Financial Implications

In March 2022, City Council approved a 10-year lease structure worth nearly $943,000 with Foxtrot, allocating the city’s 2,658 square-foot retail space at 301 W. Second St., Ste. 100 to the brand. The retailer was initially exempt from paying any rent for its first six months of operation, which were actualized from July to December 2023; instead, they were required to cover operating expenses estimated at around $12,000 during that time.

It wasn’t until January 2024 that Foxtrot began paying a hefty monthly rent of $7,752.50. Unfortunately, this only lasted for three full months, as the retailer abruptly announced its nationwide closures across Austin, Chicago, Dallas, and Washington, D.C. markets on April 23, 2024, leaving the city with an unpaid April rent bill and an empty retail space.

Next Steps

The Financial Services Department Staff of Austin City Hall is currently working on coordinating the next steps, including surrendering the space, addressing any outstanding payments, and removing Foxtrot’s personal property from the premises. However, the city is still waiting for a response from Foxtrot on the store’s April rent and more details on their move-out plans.

Both Foxtrot and Dom’s Kitchen & Market have yet to provide any comments on the situation.