Walking through Austin’s retail centers lately, it’s clear the city’s retail scene is full of both challenges and growth potential. Some tenants are cautious or slowing down their expansion plans, some are content to stay put, while others are actively planning to open more locations. Understanding how different tenants are performing offers a window into the broader market trends shaping Austin today.

Most tenants are stable but still feeling the echoes of COVID and are still working to fully recover from the market disruptions. Conversations often referenced “BC” (before COVID) and “AC” (after COVID), reflecting just how much the pandemic reshaped business expectations. Larger companies, like Ideal Image, are navigating the recent closure on Brodie Lane even as they leverage new approaches like tele-aesthetics.

Meanwhile, long-standing mom-and-pop tenants like Terra Toys, or small ethnic grocers and restaurants, rely on local customer loyalty. Many local tenants have been in the same location for a decade or more, serving a targeted clientele, and are cautious to take on relocation costs.

Yet, certain niches are thriving and eyeing expansion. Newcomers to Austin like Handel’s Ice Cream are planning to open five locations, while No.1 Boba Tea is exploring 8–10 sites. Fitness and wellness franchises, including Spenga, Flow Yoga, and European Wax Center, are also growth drivers, targeting anchored developments in North and East Austin.

Projects such as EastVillage near Samsung Austin Semiconductor, Parmer Commons with nearly 20,000 square feet of Class A retail, and The Shops at Parmer with over 10,000 square feet of mixed-use space are creating opportunities for retailers to scale in high-growth areas.

Franchise operators are also adapting in creative ways. Dart Em Up is strategically carving space alongside food, beverage, and wellness tenants, while Perspire Sauna Studio’s operator transitioned from running multiple Mathnasium locations to Austin’s wellness market, balancing business growth with personal time. These moves highlight how lifestyle and wellness concepts are responding to Austin’s evolving retail market.

Conversely, some sectors are saturated or scaling back growth plans. Nail salons, massage, daycares, and after-school programs show little interest in opening new locations.

Several of these business owners cited unpredictability in the market or limited profitability as reasons for holding back. Some of these tenants are considering selling their businesses or consolidating locations.

Redevelopment of older centers is a key strategy for creating opportunities for national and out-of-state tenants seeking entry into Austin’s market. Demand in Austin retail is strongest among lifestyle, health, and family-focused tenants. Ice cream, boba, fitness, and wellness concepts are actively seeking space for multiple locations, while service-focused, mom-and-pop tenants are content and loyal to their current locations.

Austin’s retail market is alive with opportunity. Lifestyle, wellness, and family-focused concepts are leading the charge, expanding into new developments and high-growth neighborhoods. Out-of-state tenants are drawn by the city’s energy, while local operators continue to anchor established locations. The combination of stability and momentum points to a market where the right tenants can thrive, making the months ahead an exciting time for Austin retail.