News Summary
Whitestone REIT, a Houston-based real estate investment trust, has expanded its portfolio by acquiring the San Clemente at Davenport, a 31,832 square feet retail center in Austin. Anchored by popular local restaurant Fresas Chicken, this marks Whitestone’s fifth neighborhood shopping center acquisition in the area. The acquisition reflects the firm’s strategy to focus on the thriving retail market in Austin, recognized for having the highest occupancy rates in Texas, driven by ongoing retail growth and development.
Austin, Texas
Whitestone REIT, a Houston-based real estate investment trust, has made a significant addition to its portfolio by acquiring the San Clemente at Davenport, a retail center located in Austin, Texas. This center spans 31,832 square feet and is primarily anchored by Fresas Chicken, an Austin-based Mexican restaurant chain known for its popularity among local diners. Other notable tenants at San Clemente include Iron Fitness and Greenlake Energy.
This acquisition marks the fifth neighborhood shopping center that Whitestone has acquired in the Austin area, signaling a strategic focus on this rapidly growing market. The deal was facilitated with the assistance of Shea Petrick and Chris Gerard from JLL Capital Markets, who represented the seller, HPI Real Estate Services & Investments, in this transaction.
Texas Retail Market Performance
The retail real estate market across Texas is currently experiencing robust performance, with occupancy rates reaching unprecedented levels. The Dallas-Fort Worth (DFW) area boasts the largest retail inventory in the state at approximately 199.9 million square feet, boasting an impressive occupancy rate of 95.1%. Austin stands out among Texas’ major markets with a total retail inventory of 52.9 million square feet that is currently 97% occupied, marking it as the strongest retail market in the state.
Meanwhile, Houston’s retail sector shows an inventory of 166.3 million square feet with a 95.5% occupancy rate, while San Antonio reports 49 million square feet of retail space at 95.2% occupancy. The overall growth in these regions, particularly in population, is fueling retail success, as there’s a common trend of retail expansion paralleling residential growth.
Drivers of Retail Growth
Grocery stores have emerged as the principal drivers of construction in Texas’s major metropolitan markets. Upcoming projects in Austin include new grocery store locations such as H-E-B and Sprouts, both expected to open in 2024, further enhancing the retail landscape. The DFW area is projected to see the addition of 2.7 million square feet of new retail space this year, representing the highest expansion since 2018, largely propelled by grocery store developments.
Long-Term Market Strategies
Westwood Financial, a company that has been in the retail real estate sector for 55 years, has focused on grocery-anchored shopping centers and has recently celebrated its successes through various strategies. The firm has executed 83 new leases and 227 renewals, achieving a total occupancy rate of 97.3% across its properties. Westwood Financial has strategically adapted to evolving retail markets, planning to bolster the performance of existing assets through renovations and tenant improvements.
The acquisition of San Clemente at Davenport highlights the ongoing competitive landscape of the retail sector in Austin, with Whitestone REIT positioning itself to take advantage of the favorable market dynamics. Given the current growth trends in Texas, the demand for retail space is anticipated to remain strong as both residential and commercial developments continue to rise.
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Additional Resources
- Shopping Center Business: Whitestone Acquisition
- Wikipedia: Austin, Texas
- D Magazine: Texas Retail
- Google Search: Texas Retail Market
- JLL Newsroom: Bar W Marketplace Sale
- Google Scholar: Retail Real Estate Texas
- RE Journals: Colliers SVP in Austin
- Encyclopedia Britannica: Real Estate Investment Trusts
- Community Impact: San Marcos Place Acquisition
- Google News: Retail Center Acquisition Texas
Author: STAFF HERE AUSTIN WRITER
The AUSTIN STAFF WRITER represents the experienced team at HEREAustinTX.com, your go-to source for actionable local news and information in Austin, Travis County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as SXSW, Austin City Limits Music Festival, Formula 1 United States Grand Prix, and the Austin Film Festival. Our coverage extends to key organizations like the Greater Austin Chamber of Commerce and Visit Austin, plus leading businesses in technology, automotive, and retail that power the local economy such as Dell Technologies, Tesla, and Apple. As part of the broader HERE network, including HERECollegeStation.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
