5 Misconceptions about Medical Office Space in Austin


Austin, Georgetown, and Pflugerville made headlines when they were noted as some of the fastest growing cities in the U.S. The Austin-Round Rock area has now surpassed the two million population mark. Approximately 157 new residents per day join the beloved Central Texas region. And Austin was just ranked number one on U.S. News & World Report’s 2017 Best Places to Live.

In the Emerging Trends in Real Estate 2017 survey conducted by the Urban Land Institute and PwC, Austin won “Top City” due to its “authentic, niche neighborhoods and depth of economic diversity, from manufacturing to education, health care and technology.”

However, Austin’s crowded communities bear the misconception that there’s no room left for commercial real estate opportunities, especially for healthcare providers.


Misconception #1: Austin is devoid of available medical office space.

The reality: Offices in highly visible and vibrant areas are available through the retailization of healthcare.

Doctors are moving into retail locations with strong anchor tenants, such as grocery stores or popular retailers. Moving out of centralized medical office buildings and into shopping centers opens up more opportunities for favorable locations and preferred patient profiles.

“One of the trends leading to new opportunities is multi-purposing of commercial space. We’re seeing different types of tenants using the same space for different uses at different times of the day, particularly in tight markets. Buildings with open, flexible space have a competitive advantage,” says ULI Global Chief Executive Officer Patrick L. Phillips.

For dentists, orthodontists, endodontists, and pediatric dentists, Xite Realty recommends starting the process of searching for an office 12 to 18 months before they would like to begin seeing patients.

Where are available medical offices in Austin with attractive anchor tenants? Contact me to find out.

Misconception #2: High rental rates price providers out of the Austin market.

The reality: The rise in residents generates more demand for quality patient care. Landlords are taking advantage of this “sellers’ market” and market rental rates have increased in many areas of Austin.

There are available medical offices in South Austin, Buda, and Kyle with lower market rates.

Real estate developers recognize the need for more residential and commercial supply and are making investments.

According to the ULI survey, “The housing market, both multifamily and single-family, appears to be making adjustments to match supply with the requirements and locations desired by the changing population base. To address transportation concerns, the market is likely to continue to see more mixed-use development not only to bring compatible uses together, but also to enhance the experiential feel of developments.”

Expanding FM 1626 from Hays County to Travis County creates greater accessibility and more opportunities for developments, such as Nance Ranch, a 673-acre, 2,200-home master-planned community by Clark Wilson Builder Inc.

Interested in medical offices in South Austin, Buda, or Kyle? Contact me to find out their rental rates.

Misconception #3: Established healthcare practitioners dominate Cedar Park and Leander.

The reality: In 2014, Cedar Park was the fourth fastest growing city in the U.S., behind San Marcos and Frisco. This sudden and steady surge of growth over the past five years attracted residential and commercial real estate developers, and supply has finally caught up to demand.

Plus, more residential developments are on their way in 2017.

Newer, younger residents aren’t necessarily selecting the older, established neighborhood doctor. We’re seeing these individuals choose providers based on modern amenities and full-service offerings.

To compete with well-regarded reputations, young doctors are getting creative with specialty services and upgraded options, such as Invisalign® for general dentists or designer eyeglasses in house for optometrists.

Where are the new medical offices in Cedar Park or Leander? Contact me to find out.

Misconception #4: Real estate in North Austin through East Round Rock is stagnant.

The reality: This area boasts some of the most favorable competition ratios for healthcare providers, according to Xite Realty’s proprietary demographic database that has been tailored for the medical community.

Additionally, large tech employers in the area, such as Dell, Samsung Austin Semiconductor, IBM, and Apple, employ more than 29,000 well-educated Austinites.

For patients who prefer to schedule doctors’ appointments before or after work, or on their lunch break, a practice near these large employers could be appealing to them.

Interested in seeing the competition ratio data? Contact me for more information.

Misconception #5: Georgetown is primarily populated with older residents.

The reality: Georgetown has evolved over the past few years due to investments and developments by the Wolf family and the city.

In the past, Georgetown was associated with the retirement community Sun City. Now it’s one of the country’s fastest growing cities.

“Georgetown’s population growth shows no signs of slowing down. According to the City’s Planning Department, another 1,214 single-family homes have been platted in the city limits and another 1,116 apartment units have been recently completed or are near completion. Another 7,855 single-family homes in the city limits are in the planning stages, with an expected build out period of five to 20 years,” according to the city of Georgetown’s website.

  • Wolf Ranch is a 755-acre master planned community with 1,600 single-family homes, 900 multi-family units, neighborhood retail, and 140 acres of parks.

  • Saddlecreek is a 353-acre planned community in southeast Georgetown with homes, retail, offices, and a business park.

  • Tamiro Plaza phase 2 is a four-story mixed-use building with 16,000 square feet of specialty shops and restaurants, 43,000 square feet of professional offices, and residential brownstones on the upper levels.

  • The City Council approved three affordable housing developments along Williams Drive, including Kaia Pointe, Live Oak Apartments, and Merritt Heritage.

Voters approved a $160 million bond for Georgetown ISD to build new campuses and renovate existing school buildings.

Even with this tremendous growth, medical office rental rates remain relatively low. Georgetown is a great option for healthcare providers who are interested in getting in the market early and riding the growing wave.

Where are available medical practice locations in Georgetown? Contact me to find out.

Xite Realty believes in championing community-based care. We connect healthcare professionals, such as physicians, dentists, optometrists, and veterinarians, to their local neighborhoods in need of quality care.

We use our proprietary demographic database that has been tailored for the medical community and our deep understanding of the Austin real estate market to identify office locations that are well suited for successful healthcare practices.

If you’re a physician who is interested in opening or expanding your practice, contact me for more information on prime real estate opportunities in Austin, Texas.