AUSTIN, Texas (BRAIN) — Austin’s skyline is in constant flux. Even as more skyscrapers erect downtown, towering construction cranes are ubiquitous and signal the ongoing redevelopment and transformation happening in the Lone Star State’s capital. The growth has posed a challenge for new shops looking for a place to call their own as well as established businesses and owners who don’t own the building they occupy.
As major tech, advertising, gaming and marketing firms have established offices and headquarters here in recent years, Austin has experienced a constant influx of new residents and businesses. They’re all challenged by the demand on space, which has driven up the cost of rent and a storeowner’s ability to sign long-term leases.
As population increases so have the number of high-density condos, and the number of businesses looking to serve a growing, highly educated and young demographic. All kinds of companies are setting roots in Austin and the environs, from restaurants to bars to bike shops and they’re all vying for space that’s becoming more expensive.
Natalie Goforth, owner of Fast Folks Cyclery, has moved twice since she first opened for business in 2009. The latest move—from 6th Street to East Cesar Chavez—was this past July. “I had to move because my landlord couldn’t give me a longer lease. And she kept increasing my rent. She increased it $1,000 per month and said she could get double the rent from someone moving here from New York,” Goforth said.
“I saw this location and I was able to afford the rent,” she added. “My dad helped me negotiate based on the other two places I had. But if I hadn’t gotten this location, I don’t know what I would have done. I probably would have moved to San Marcos.”
The move gave Goforth the opportunity to add a café, and room needed to host more community events at her store, which include everything from benefits and fundraisers to bike polo event pre-parties and even a lingerie race.
Ross Bennett, a loyal customer of Goforth’s shop and an Austinite, summarizes the changes he’s seen in his city succinctly as he sat on a bar stool, working away on his laptop.
“For a long time, people didn’t give this place a chance,” he said. “Now there’s 150 people moving here a day. It’s all y’all and people from the East Coast. Every major tech company came here—even GM. Dell started it. Now we’ve got 80,000 people who come here for a week during the tech conferences, and that’s fueling the city.”
Bennett, who drops in at Fast Folks anywhere from three to four times a week to hang out, enjoy some coffee and relax, said despite the growing number of bike shops, there was a need for a shop like Goforth’s. “I can go to any shop in the city but I come to hers. It’s a community. And she’s done it all on her own.”
As space in downtown became less available and more expensive, some retailers saw the opportunity to tap less developed, nearby areas. John Dalton Jr. and his father, John Dalton III, opened Division 1 on East 7th Street in 2012, a largely Hispanic neighborhood. Just a few blocks from downtown in East Austin, the store’s located in an up-and-coming area that’s more affordable.
“For us, this community will grow and change. There’s no high-end shopping here yet,” said Ted Arnold, general manager of Division 1. “We’re ahead of the curve.”
Arnold said traffic has increased significantly in the city and residents are willing to drive outside of downtown to shop. And that’s something he thinks will drive business to retailers in outlying areas, including the East Side.
Still, Austin’s rapidly developing landscape is a concern for retailers longterm, even mobile businesses like Streamline Cycles, which operates out of an Airstream trailer parked on East Cesar Chavez Street in the heart of downtown.
“Austin is changing so fast. Unless it’s a W hotel or Four Seasons, you’re not guaranteed you’ll be at the same location. And construction happens fast,” said Brian Robbins, who along with Jesse Tonche, launched Streamline Cycles in September, primarily as a bike repair and service business.
They rent their parking spot, and at least for the next two and a half years, have a secure spot where they can operate. But the city has drafted plans to build a park and two tall towers that will require them to move their Airstream after that.
“We have options to stay in the area,” Robbins said. “And we’ve looked at spaces that weren’t astronomical in rent, but we don’t want to be a bike shop. We don’t want to sell bikes. We really take pride doing solely service.”
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Our first stop of the day was Austin landmark Mellow Johnny’s and its Juan Pelota café, named after store partner Lance Armstrong. -
The shop serves as something of a museum for Armstrong’s competitive race bikes, including this downstairs display highlight major victories from early in his career. -
Mellow Johnny’s general manager Will Black (left) and marketing director David Mider gave us a tour of the massive shop that has become an international tourist destination. Shortly after our visit, Mider sent a BRAIN staffer an email saying in part: “So about an hour after you left, Lance called to tell us he was just on bicyleretailer.com reading about the dealer tour. He asked, ‘Hey. Why aren’t we on this thing??’ Will told him, ‘Don’t worry, they just left. We will be.’ Pretty funny. And that’s a good example of his involvement (in Mellow Johnny’s).” -
We dropped in mid-morning on the offices of advocacy group Bike Texas, where a free solar charging station for e-bikes and devices welcomes visitors. -
Our Day 3 route took us on the Lance Armstrong Bikeway. -
Division 1 Bicycles opened in 2012 on Austin’s East Side, a rapidly developing area of the city where it’s still relatively affordable to open a business amid the city’s skyrocketing property values. Owners John Dalton Jr. and John Dalton III offer specialty bike brands ranging from Public and Fyxation city bikes to high-end mountain bikes from Ventana and custom ti, steel and carbon road bikes by Alchemy. -
A complimentary café at Division 1 has free drinks for customers. The shop gave the BRAIN Dealer Tour a special welcome on the café’s screens. -
A few of the Ladies of Dealer Tour take advantage of the front patio at Division 1. BRAIN’s Val Vanderpool (left) and Megan Tompkins flank Bell Helmets’ Kristin Michal. -
Natalie Goforth opened Fast Folks Cyclery in 2009 and moved to the shop’s current location downtown in July. The shop/café has become a social hub, and Goforth plans to expand her footprint to host bigger events and increase her retail space. -
Fast Folks carries Pure Fix, State Bicycle and local Austin favorite Fairdale. The shop also has a full service department, but bike and accessory sales are its bread and butter. -
Fast Folks’ café serves coffee and mostly vegetarian and vegan fare—including vegan ice cream. It has also has décor created by local artists, whose work can be found throughout the shop. -
Civic pride abounds throughout the Texas capital. -
Set up in 262 square feet inside an Airstream trailer, Streamline Cycles is Austin’s smallest bike shop. Owner Jesse Tonche partnered on the service-only shop with Brian Robbins, a Chicago industry veteran who has worked with Chris Kegel at Wheel & Sprocket and also worked for Bicycle Sport Shop and other Austin retailers. They invested about $10,000 to get the business up and running. They bought the Airstream on Craigslist remodeled the trailer and parked it by a food stand. -
The Dealer Tour crew squeezes into the Airstream with Streamline partners Jesse Tonche (front left) and Brian Robbins (right front). -
Bike Texas executive director Robin Stallings, our ride guide for the BRAIN Dealer Tour’s three days in Austin, delivers an overview of some the group’s achievements and goals for cycling in the state.
