San Marcos - Buda - Kyle Edition | March 2020

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Texas, Tenenbaum said. The national closures of stores like department store chain Bealls leave larger vacant spaces to ll, but local icons closing seem to leave a bigger mark on the local business climate. Heartworks Co./ Paper Bear closed after 41 years in busi- ness, and Centerpoint Station closed after 25 years. In downtown, there are several notable “for lease” signs, including at Gin- ger Sushi + Poke and Cheer & Chow, next- door businesses on North LBJ Drive not far from campus. Both closed in January. As some businesses leave, new ones come in, including a couple family owned business expansions from Austin and another from New Braunfels. Businesses work together Rent prices, according to Falletta, range from $1 to $30 per square foot. Numbers for 2019 through CoStar Group showed an average of $25.66 for base rent in San Marcos, similar to other cities in the region. The churn is “healthy and expected within the real estate market,” according to Tenenbaum. Falletta said downtown rates within that huge range helps businesses weather the storm when school is out in the summer or the city’s large infra- structure construction project limits of the ease of mobility in town. “The independently owned businesses are one of the things that make San Marcos really special,” Falletta said. Diana Armes, who has owned The Floral Studio at 331 W. Hopkins St. for 18 months, said business

The Hub changed names and changed locations, becoming Galaxy Bicycles at 500 S. Guadalupe St., San Marcos. THEMOVE FROMHOPKINS STREET LEFT ANEWVACANCY.

“People are still going to retail stores locally, but this kind of slowed down [in 2019],” Tenenbaum said. “Among other factors, national store closures started aecting what landlords thought they could price things at.” A tale of dierent businesses The San Marcos market is a somewhat unique mix in commercial retail. On the south side of the city, destination shoppers make their way to the large collection of outlet stores along I-35. San Marcos Premium Outlets experiences the ebbs and ows of the national chains but remains a go-to for shoppers throughout the Austin and San Antonio regions. Downtown San Marcos, a few miles north and west of I-35, is an eclectic mix of smaller, often family owned businesses that see benet from the Texas State University campus that abuts the downtown area. While the national and chain retail businesses play an important role in the growth and steadiness of San Marcos nancially, Downtown Coordinator Josie Falletta said the smaller businesses—espe- cially those in the downtown district—work together to draw people into the district, often hosting special events and creating promotions shared on social media. “We have a very active and engaged business community,” Falletta said. “We are living in a time where retail is changing every day. We try to stay on top of the trends and help our local businesses.” San Marcos experiences a churn of businesses coming and going, not unlike other cities in Central SAN MARCOS  BUDA  KYLE V A C A N C I E S R E T A I L The vacancy rate refers to the percentage of total square footage of retail property that remains available each year. Vacancy rates have uctuated, with 2019 having the highest rate since 2015.

JOE WARNERCOMMUNITY IMPACT NEWSPAPER

has been good and she is able to reach clients in Kyle and Buda. While she has three or four weddings a month, most of her business is everyday purchases of owers and packages for area residents, busi- nesses, student, sororities, schools and special events like proms. The previous owner had strong numbers for her longtime business. “Our location is fairly busy, so we get a lot of vis- ibility,” Armes said. “It’s a good location and busy strip mall that we are in.” KnD Resale &More, at 312 N. LBJ, is co-operated by KristanAllen, whowas born and raised in SanMarcos. “Business is going really well, thanks to the prox- imity to the university,” Allen said. While there are no vacancies on her block, she said there are several she notices in the downtown area. “The summer months are rough because the

Square footage of total inventory

Percentage of inventory that is vacant

3.1%

3.6%

2.9%

3.5%

4.4%

4.1%

5.75M 6M 5.5M 5.25M 5M

0

SOURCE: COSTAR GROUPCOMMUNITY IMPACT NEWSPAPER

32 ND ANNUAL

The Bobcat Club’s annual auction benefit in support of student-athlete scholartships. On the campus of Texas State University SATURDAY, APRIL 25TH, 2020

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