The business scene in East Austin

Business owners in the construction, food, retail, manufacturing, and professional services
industries report a generally positive outlook for the future. Businesspersons anticipate
moderate to rapid growth for their businesses. For the food and retail industries, that growth
comes as businesses report serving a larger client base with higher disposable incomes than in
the past. Construction and manufacturing firms should also benefit from local East Austin and
regional population growth.

For firms closely tied to local customers, adapting means integrating new, comparatively affluent residents into their client base. For firms that service the greater area, adapting means countering higher property values. Each business must decide if its current location is integral to economic growth. If higher property taxes and rents are offset by the higher value of conducting business in East Austin, these firms will remain and prosper. If not, they may need to relocate to pursue less expensive property or an adequately skilled labor force. The ethnic and racial diversity that has long been a hallmark of East Austin is being transformed by diversity along socioeconomic lines. Wealthier Austinites are crossing the I-35 barrier. Nimble businesses able to adapt will benefit from this transformation.

This is the state of businesses in some of the East Austin corridors:
Commercial Dearth on MLK
Boom and Stagnation for 11th and 12th Streets
Construction as a Mixed Blessing for 7th Street

In terms of the changes that are occurring in Central East Austin, it is the activity of the construction industry that is perhaps most visible. As old structures disappear, developers are replacing vacant lots and warehouses with new homes and stores. Financial businesses designed to serve a specific population, such as low-income Hispanic families, rather than the wider East Austin community, are struggling. These businesses on the fringe of the mainstream economy may no longer have a solid customer base in the area.

Business owners in this sector will certainly experience more pressure as changes continue in
East Austin. Those that can absorb the pressures of rising property values and adjust to the
demographic change—or those who can rally enough business support around them to produce
aid from city hall—will continue to thrive. Those who cannot do these things will ultimately
suffer.

Most firms are content to provide a service for the surrounding community rather than simply
make a large financial return. None of the owners reported plans to expand their business beyond East Austin, stating that they generally just want to survive, live within reasonable means, and be a part of the surrounding community. The greatest concern for East Austin food service business owners is the emergence of large-scale real estate developers who are focused on maximizing profits and whose existence alters community character.