la Frontera In the News
The Austin American-Statesman
July 4, 2000
La Frontera of Round Rock puts rivals within easy reach
by Janet Jacobs, American-Statesman Staff
ROUND ROCK -- If competition is healthy, then Round Rock will be positively glowing. With the opening of La Frontera shopping center at Interstate 35 and FM 1325, these existing and new stores will face off on the two northern corners of the intersection:
- Office Depot and Office Max
- Petsmart and Petco
- Home Depot and Lowe's Home Improvement Warehouse
Officials with the companies say they don't pay attention to what their competition is doing, but look more for complementary stores that will help attract customers.
And analysts point out that in Round Rock, a city with only six exit ramps off I-35, it's hard to find another corner close to the population center that's suitable for big stores.
"Round Rock isn't big enough to have many major intersections yet," said Gail Whitfield, a specialist in retail site selection. "So that's the only intersection in Round Rock."
Even if the city had more great corners, it would be hard to find a better site.
Just north of Austin in southern Williamson County, residents within a 10-mile radius of the site have a higher-than-average median income. And Round Rock's largest employer, Dell Computer Corp., is only half a mile east on FM 1325.
When it's completed in 2004, the 328-acre development is expected to have 12 major "anchor" stores as well as another 40 smaller stores, a full-service hotel, nine sit-down restaurants, an apartment complex and lots of office space.
La Frontera stores set to open this month are Bed, Bath & Beyond, Pier 1 Imports, Office Depot and Rack Room Shoes. In rapid succession, shoppers can also expect Old Navy, Circuit City, Barnes & Noble, Marshall's, Ulta, Petco, Hobby Lobby, Gage Furniture, Sam's and Lowe's .
When finished, the project is expected to be worth between $650 million and $700 million. In its first year, the retail portion is expected to bring in between $2.2 million and $3.5 million in sales tax, according to estimates made earlier by David Kautz, finance director for the City of Round Rock.
Across I-35 on FM 1325 are competing shops.
The largest center is Boardwalk, with a Wal-Mart, Home Depot, Petsmart, Office Max, Linens & Things and dozens of smaller shops and restaurants.
"There's that much spending potential out there. They can co- exist," said Kelly Shaw, senior vice president with Trammell Crow Co., which is responsible for the retail side of La Frontera.
Shaw said that in many cases, the company had two stores in each category wanting into the center.
"It's just more a statement on the trade area," Shaw said. "When they're looking at Austin, the national retailers consider three dominant trade areas -- U.S. 290/MoPac, Lakeline Mall, the Arboretum - - and Round Rock is coming in as the fourth."
Beth Gleason, an analyst with Angelou Economic Advisors in Austin, agreed. "That's such a hot corner that both those retailers are willing to take that risk. That corner is a sizzling piece of real estate. If that were happening with my client, it wouldn't bother me at all."
Nor does it bother those who are already there, at least according to Petsmart spokeswoman Lynne Adams.
"It doesn't shake us up too much," Adams said. "Petco is a competitor, but we also benchmark against any discount retailer -- Wal-Mart or Target."
Having another major pet store within barking distance can also be a plus, she said. "We tend to perform well when our stores are located near one another."You may contact Janet Jacobs at jjacobs@statesman.com or 246-0053. (from box)La Frontera
The 328-acre development is expected to have 54 stores, including 12 major retailers, some battling competitors just down the road.Source: PKF Consulting
