If your a business (especially a restaurant) considering leasing retail space on Guadalupe St in Austin, Tx, also known as “The Drag” you might want to reconsider, or at the very lease do your homework before signing a lease. In recent times over 7 restaurants have failed in this area and other retail businesses experience slow times when school is out. It’s located next to The University of Texas and even with that captive audience that is not a recipe for success. You must make sure this location is right for your business before pulling the trigger.
Cons of owning a business on The Strip:
- Older consumers are less likely to go there to shop thus limiting you primary demographc to students
- Rents are very high. There are a lot of different property owners so retail lease rates can fluctuate to up to $40 sf
- There is little to no parking
- Seasonality of business because student population. Summers can be slow
- There are fewer unique store meaning more competion
- Know your target Audience before leasing here. If your primary audience are students then this will be a great location
- Make sure you are ok with the parking situation. Challenging parking situations can cause consumers to lose interest
- This location highly populated and walkable by students. If that is your audience then go for it.
Overall I’m not saying that Guadalupe Street is a bad retail location. You just have to make sure it’s right for your business. Spend the time to research the market before signing a lease.