Exciting Retail Changes in Austin as Two Major Centers Change Hands!
Hey there, Austin! Big news coming out of our vibrant metro area — two popular retail centers have officially switched owners, and we’re here to share all the juicy details with you. As vacancy rates tighten due to less new retail space hitting the market, it seems businesses are jumping at the chance to grab well-leased properties. Let’s dive into what these sales entail!
Shops at Lakeline Takes a New Turn
First up is the much-loved Shops at Lakeline, located at 115 S. Lakeline Blvd. This retail haven has recently been acquired by CenterSquare Investment Management, and it sounds like they’re thrilled with this new addition to their portfolio! The property is a cozy 22,443 square feet but is super appealing as it’s 100% leased. That’s right, not a single space is left empty!
So, who can you find in this bustling center? Well, if you’re in the mood for a comforting slice of pizza, head over to Domino’s. If your furry friend needs some TLC, the VCA Animal Hospital is right there waiting. And don’t forget to pamper yourself at Cedar Park Dental or unwind at Lakeline Nails and Spa. It looks like CenterSquare is investing in essential services by targeting high-quality neighborhood retail centers, and this acquisition fits the bill perfectly!
San Marcos Place Gets a Fresh Start!
On the other end of the metro, we have the delightful San Marcos Place, a bustling 73,882-square-foot retail center located at 900 Bugg Lane. This property has changed hands after being snapped up by L&L Property Company from Partners Real Estate. Now, it was 82% occupied when the deal went down, sporting a mix of popular tenants like Pizza Hut, Polo Loco, USPS, and Chinese Buffet — definitely a favorite for many locals!
This sale also signifies a memorable chapter for Partners Real Estate as it marks the closing of their Partners Opportunity Fund II. Originally, they purchased San Marcos Place back in 2018, and they have been making significant investments ever since! With a value of approximately $50 million, their latest fund wraps up a robust portfolio that highlights the potential of retail in this thriving Texas market.
What’s Happening in the Retail Scene?
So, what’s the mood in the overall retail market here in Austin? Well, it seems pretty steady, but there are whispers of a slight slowdown in “net absorption.” The current vacancy rate is at a tight 3.4%, meaning that places are filling up faster than new spots can be created. It’s worth noting that in recent months, like the third quarter of this year, the area saw about 460,000 square feet of retail space leased — that’s an 11% increase from the previous quarter. However, it’s down 19% from last year. Interesting times indeed!
Additionally, over the past three months, net absorption recorded a stellar performance with 174,274 square feet of positive absorption, marking the 16th consecutive quarter of growth. Now, that’s something to celebrate! While the new retail spaces that opened this year total around 1.2 million square feet, the market swiftly absorbed about 1.1 million square feet of that space.
In Conclusion
If there’s one thing we can take away from these recent transactions, it’s that Austin’s retail market remains hot! As new product supply remains limited, these well-leased properties with national-brand tenants are highly sought after — making for a dynamic environment for both retailers and shoppers alike.
As we watch these changes unfold, it’ll be exciting to see how these retail centers adapt under new ownership and continue to contribute to our community. Stay tuned for more updates as Austin continues to grow and thrive!
