New unused retail/office space near 4 Points

[CarnivalGal]

620/2222 is slated for huge growth. There are 2 hotels in the works at 4 points (one in River Place, one at the NW Corner of 620/2222). Quite simply, it is one of the fastest growing areas of the state.

As far as restaurants in Steiner, you asked, "Why can't a decent restaurant in Steiner succeed?" Actually, they have all succeeded with the exception of that location. Steiner Ranch Steakhouse is going quite well, as is Lakeside Pizza, Cho, and the new Kawa Asian restaurant. Fion closed last year, but that was due to the previous owners' tax "issues" more so than lack of business (their Westlake location also closed). I have eaten at every restaurant in that location, and I can honestly say that every single one of them has been far from a "decent restaurant." Food has been mediocre and service abysmal. There are just too many other options in Steiner, so people won't go if it's not any good. THey'll just go to one of the other, better restaurants. They all have great openings, but then no one returns. People WANT a good restaurant there. That's why they flock as soon as a new one opens. I think the owners of those restaurants just assume that ANYTHING in that location will do well, but that is (obviously) not true.

[CarnivalGal]

Originally Posted by nathanksmith

The 620/2222 area has been under developed for quite some time. There has been a need for more retail in this area. Unfortunately the most recent recession slowed down leasing a bit however things have turned around for the better.

The 7-11 location is going to be redeveloped at some point. That is prime real estate.

That land has been slated for a hotel / resort for quite a few years. The investor got into some legal issues with the city because after spending millions to buy it, he was told that he wouldn't be able to use it for the purpose it was originally approved for. Basically, there was some endangered cockroach or something discovered on the land, and they changed their mind. He sued and won. So it should be developed soon.

I heard the actual 7-11 itself is going to be a CVS. Don't know how true that is, but it seems as though you can't have a Walgreens without a CVS across the street, so it's probably overdue.

[pmiranda]

Originally Posted by cBach

I'm talking about the perspective of a developer who would spec build hotels and then try to sell the property to hotel chains ready to move into the Austin market. I'm not even sure if Austin has this kind of developers.

I don't know how successful that would be... Walk into any Hampton Inn and you'll find they're built to their own design that is nearly uniform across all their properties. I suspect most chains want to build a standard design and don't want to pay a dime extra for noncompliant design features.

Strip malls and office buildings are very uniform and easy to spec build. They go up faster than hotels because you can use tilt-wall construction and leave the interior mostly unfinished until you sign up tenants how can then finish them out to suit. It's also some of the easiest zoning to get other than residential property.

That's just my point of view from trying to find reasonably priced industrial land/buildings in Travis county and finding that most property zoned appropriately is locked up by commercial speculators that like to build empty office buildings and lease them.

[cBach]

Originally Posted by pmiranda

I don't know how successful that would be... Walk into any Hampton Inn and you'll find they're built to their own design that is nearly uniform across all their properties. I suspect most chains want to build a standard design and don't want to pay a dime extra for noncompliant design features.

Strip malls and office buildings are very uniform and easy to spec build. They go up faster than hotels because you can use tilt-wall construction and leave the interior mostly unfinished until you sign up tenants how can then finish them out to suit. It's also some of the easiest zoning to get other than residential property.

That's just my point of view from trying to find reasonably priced industrial land/buildings in Travis county and finding that most property zoned appropriately is locked up by commercial speculators that like to build empty office buildings and lease them.

You need to see New Orleans hotels, very nonstandard buildings but with familiar chains. Basically old office buildings, warehouses, etc.. converted into hotels. Hotel Chains actually like that kind of thing...

[paul6835]

The emergence of Bee Cave probably isn't helping. People to the North and East already had better options than 4 points and the people to the South do too now. There isn't a big enough population to the West (or room to grow), and the immediate area is pretty much developed. Contrast that with Bee Cave where 3 giant developments are moving in down west 71 and there's already a significant population in place.

[OpenD]

Originally Posted by CptnRn

Why restarants don't work? They are one of the riskiest types of businesses you can open. Most new ones fail within one year of opening.

I've long said as much, because that was what everybody thought. Recent management studies at Ohio State and others have shown that the fact is, things are a bit less dire than many previously thought.

First, restaurants are only slightly more risky than other business startups, and franchise restaurants fail almost as often as non-franchise.

And the failure rate of restaurants, across the board, is about 25% after 1 year, and 60% after 3 years.

The Restaurant-Failure Myth - Businessweek

[sxrckr]

Originally Posted by paul6835

The emergence of Bee Cave probably isn't helping. People to the North and East already had better options than 4 points and the people to the South do too now. There isn't a big enough population to the West (or room to grow), and the immediate area is pretty much developed. Contrast that with Bee Cave where 3 giant developments are moving in down west 71 and there's already a significant population in place.

Good points.