Making space: Rental rates drive retail, office alternatives

Office Evolution is just one of several enterprises in the Round Rock, Pflugerville and Hutto area offering support to small businesses.

The current situation

New facilities, storefronts and resources for small businesses and startups are on the way in Round Rock, Pflugerville and Hutto.

Round Rock Chamber President Jordan Robinson said coworking spaces were identified this year as part of the chamber’s strategic plan for economic development.

This comes as area facility owners are working to expand spaces, and new facilities are planned to support local entrepreneurs.

For small-business owners looking for a storefront, a new facility in Hutto presents an affordable option.

Michael Postar, owner of Michael Postar’s Affordable Storage, has blended storage and retail to bring more options for those in need of a storefront in Hutto.

Postar’s creative venue for storefronts launched as rental rates for retail and office have grown in recent years by about $5 per square foot—usually around $30, Postar said.

Additionally, support for new business concepts in their earliest stages is coming in the form of a new startup accelerator in Round Rock and a co-warehousing project in Pflugerville.

The conditions

Higher rental rates drive business owners to seek alternative options for office and retail space, Robinson said.

Coworking spaces help multiple business owners shoulder the costs of being in a high-quality space, she said.

“If they only need a conference room once a week or a few times a month to host clients, they’re not bearing that burden all on their own,” Robinson said.

Alternative retail spaces, such as the storefronts available at Affordable Storage in Hutto, which combines retail and storage spaces, can help lower the cost of entry into a community, Postar said.

Postar owns over 20 such facilities in Texas. He opened his Hutto facility in 2022, driven in part by local growth and the community feel.

“People still open doors for you [in Hutto],” Postar said. “People are still saying hello. People still shake hands.”

The retail portion of the facility is now home to a variety of locally owned small businesses, including breweries, beauty shops, gyms, art studios, consignment stores, auto shops and more.

Providing an affordable entry into owning a small business is part of his mission, Postar said.

Spaces such as Office Evolution in Round Rock and the future WorkHub in Pflugerville provide business owners with flexible uses and schedules.

Both fill a regional need for flexible space, Robinson said, to support local startups in scaling their businesses.

The Round Rock location was the first in the Austin area to open in June 2021. Since then, the Lintons expanded the facility by adding 3,000 square feet of private office space. They also opened a second location in Georgetown in January.

Office Evolution provides conference rooms and coworking spaces for rent by the hour or longer. Similarly, the recently approved WorkHub will provide a co-warehousing opportunity in Pflugerville.

Joel Desmond, land acquisition analyst at WorkHub, presented the concept design for the facility at a June Pflugerville City Council meeting, where a rezoning request was approved.

“We just don’t build four walls and a roof; we build an innovative space for businesses that [are] growing and we give them the tools to grow,” Desmond said.

WorkHub has monthly meetings with tenants, whom Desmond calls members, and helps with marketing and obtaining investors.

Jerry Jones, executive director of the Pflugerville Community Development Corporation, said the facility will allow small business owners to “come out of their garage or off their kitchen table.”

The facility will allow tenants to share resources that could otherwise be a cost burden.

“​​I cannot stress to you how important it is that a company wouldn’t have to buy or lease a forklift for their product,” Jones said.

More details

In mid-September, the Round Rock Chamber announced its first partnership to accelerate the development of local startups.

Called gBETA, the free seven-week, no-equity accelerator will offer one-on-one coaching and tailored programming to participants, as well as a network of potential mentors, customers and investors. The application deadline is Oct. 19.

Participation in this program is intended to set up a pathway for Central Texas startups to engage in equity-based accelerator programs and investment opportunities, Robinson said.

“It’s really meant to equip a startup founder with the tools, from just figuring this out on their own to having an entire cohort that’s receiving guidance, mentoring and introductions that will help take them to the next level,” Robinson said.

In Pflugerville, Jones said the PCDC is working on developing an entrepreneurship program to nurture small businesses in the area.

How it works

gBETA, a free seven-week program, provides Round Rock-area startups with guidance to scale their business. The first six weeks include team meetings with a gBETA program manager; lunch and learns focused on marketing, financing, pitching and other topics; and speed dating sessions with potential mentors. The seventh week features curated, one-on-one pitch meetings with potential investors and a showcase event. After the program, participants will continue to receive support, attend conferences and have other pitch opportunities.

Looking ahead

Projects to bring affordable options to small-business owners throughout the region are underway at varying stages of completion.

The flexible-use space planned by WorkHub is set to be located near Wilke Lane and Huntingtower Castle Boulevard in Pflugerville and is expected to open in 2026, according to the company.

In Hutto, Postar’s Affordable Storage facility is in the process of completing the second phase of its development, expected to be complete in October, he said. This expansion includes a second strip of retail spaces, which are already leased, as well as more boat and recreational vehicle storage.

A third and fourth phase are already in the works, he said, with available space for a fifth so the project can grow with the city.

“As there is a need—and people need it—we can add on,” Postar said.

More immediate is the start of the first generation of the gBETA accelerator, Robinson said.

The first cohort of the accelerator will begin the program Oct. 30.

“Once they graduate, they’re part of the ‘gener8tor’ network,” Robinson said. “They’ll have access to resources globally as they continue their journey.”