The Palms Shopping Center
One-of-a-kind Class A retail—steps from the largest outlet destination in the U.S.
Marketing description
The Palms Shopping Center — 100% Leased | Prime I-35 Frontage at San Marcos Premium & Tanger Outlets
Offered at a 7.00% Cap
TC Austin Realty Advisors is proud to offer The Palms Shopping Center, an exceptional investment property situated within the Premium Outlet Mall in San Marcos, Texas. Strategically located just off Interstate 35, this property provides unparalleled visibility and exposure, making it an ideal acquisition for investors seeking to capitalize on one of Texas’s most thriving retail destinations.
Fully leased to a mix of luxury retail, health and wellness, service, and national brand tenants, this is a stable asset with minimal landlord responsibilities. Due to its premier location and established tenant base, The Palms Shopping Center offers a unique, low-risk investment opportunity with strong potential for growth.
The Palms Shopping Center benefits from the high foot traffic generated by its proximity to both the San Marcos Premium Outlets and the adjacent Tanger Outlets. Together, these premier shopping destinations form the largest outlet shopping center in the United States, spanning over 1.2 million square feet. As the third-largest tourist attraction in Texas, these outlets house over 240 luxury and name-brand stores and attract more than 14 million shoppers annually with an estimated annual consumer spending over 2.3 billion.
Demographics and market trends indicate a highly positive outlook on appreciation, as even the local consumer base alone has fostered a roaring economy. San Marcos is at the heart of the Innovation Corridor, an emerging region that stretches between Austin and San Antonio along Interstate 35. Relocations and expansions from major corporations have significantly increased migration to San Marcos and Hays County, deepening the local consumer pool. These trends reflect in real estate data as the trailing three-year average annual retail rent growth for Hays County was 4.9% as of Q2 2025, with an air-tight vacancy rate under 2%.
With its unmatched location, strong tenancy, and proximity to Texas's leading outlet centers, The Palms Shopping Center offers a rare one of kind opportunities to own a high-performing retail asset in a market supported by exceptional fundamentals.
Investment highlights
Premier Central Texas Location
Palms Shopping Center is a fully occupied ±17,672 SF retail center located at 3941 S IH-35 in San Marcos, Texas. Nestled between Austin and San Antonio, the property sits at the epicenter of one of the most dynamic retail corridors in the country—directly adjacent to the San Marcos Premium Outlets and Tanger Outlets, a combined 1.2 million SF destination attracting over 14 million visitors annually.
100% Leased with Strong Tenant Mix
The center is anchored by nationally and regionally recognized brands including James Avery, DXL Men’s Apparel, Christian Gifts Outlet, Perfume King, Paris Nails, and King’s Jeweler. This diverse tenant base ensures stable income across retail categories—from fashion and personal care to specialty retail and jewelry.
Stable Cash Flow & Growth Potential
With a pro forma stabilized net operating income, The Palms offers dependable income and is supported by long-term leases averaging 4.5 years WALE (weighted average lease expiration). The tenant roster includes annual base rent increases, ensuring consistent year-over-year revenue growth.
Turnkey Asset with Minimal Oversight Required
Meticulously maintained and designed for operational efficiency, the center demands minimal capital investment and management oversight. Ownership benefits from reduced operational complexity, as the property is not subject to shared common area obligations or outlet center constraints.
Attractive Market Fundamentals
San Marcos is among the fastest-growing cities in the U.S., with a projected 44% population growth by 2030. Located in Hays County—expected to grow nearly 70%—this retail corridor offers long-term demographic tailwinds. Within a 15-mile radius, the population exceeds 260,000, with average household incomes approaching $125,000.
Accessibility & Visibility
Situated at the high-traffic intersection of IH-35 and Centerpoint Road, the center benefits from over 160,000 VPD in both northbound and southbound directions. The site offers ample parking and prominent signage along the highway, ensuring sustained consumer visibility.
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