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The Palms Shopping Center 3941 S Interstate 35 17,672 SF 100% Leased Retail Building San Marcos, TX 78666 For Sale 7% Cap Rate
INVESTMENT HIGHLIGHTS
- The Palms Shopping Center presents a 100% leased, low-risk investment opportunity with strong potential for growth due to its exceptional location.
- Next to San Marcos Premium Outlets and Tanger Outlets, the largest US outlet center at 1.2M+ SF, making San Marcos as a top shopping spot in TX.
- Total households within a 3-mi radius grew by 36.8% from 2020-2024, projected to increase another 33% by 2029. Outlet employment supports 3,200+ jobs.
- Benefits from a stable tenant base surrounded by a vibrant mix of retailers, dining, and entertainment venues, supporting sustained consumer interest.
- The malls host 240+ retailers, attracting 14M+ annual visitors, the third-largest TX tourist attraction with approximately $2.3B+ in annual revenue.
- Situated directly off Interstate 35, affording incredible consumer access and exposure to more than 150,000 vehicles per day.
EXECUTIVE SUMMARY
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 the most thriving retail destinations in Texas.
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 of over 2.3 billion.
Demographics and market trends indicate a highly positive outlook on appreciation, as even the local consumer base 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 are reflected 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 leading outlet centers, The Palms Shopping Center offers a rare opportunity to own a high-performing retail asset in a market supported by exceptional fundamentals.
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 of over 2.3 billion.
Demographics and market trends indicate a highly positive outlook on appreciation, as even the local consumer base 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 are reflected 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 leading outlet centers, The Palms Shopping Center offers a rare opportunity to own a high-performing retail asset in a market supported by exceptional fundamentals.
OFFERING MEMORANDUM Click Here to Access
DATA ROOM Click Here to Access
- Offering Memorandum
FINANCIAL SUMMARY (PRO FORMA - 2026) Click Here to Access |
ANNUAL (CAD) | ANNUAL PER SF (CAD) |
|---|---|---|
| Gross Rental Income |
$99,999
|
$9.99
|
| Other Income |
$99,999
|
$9.99
|
| Vacancy Loss |
$99,999
|
$9.99
|
| Effective Gross Income |
$99,999
|
$9.99
|
| Taxes |
$99,999
|
$9.99
|
| Operating Expenses |
$99,999
|
$9.99
|
| Total Expenses |
$99,999
|
$9.99
|
| Net Operating Income |
$99,999
|
$9.99
|
FINANCIAL SUMMARY (PRO FORMA - 2026) Click Here to Access
| Gross Rental Income (CAD) | |
|---|---|
| Annual | $99,999 |
| Annual Per SF | $9.99 |
| Other Income (CAD) | |
|---|---|
| Annual | $99,999 |
| Annual Per SF | $9.99 |
| Vacancy Loss (CAD) | |
|---|---|
| Annual | $99,999 |
| Annual Per SF | $9.99 |
| Effective Gross Income (CAD) | |
|---|---|
| Annual | $99,999 |
| Annual Per SF | $9.99 |
| Taxes (CAD) | |
|---|---|
| Annual | $99,999 |
| Annual Per SF | $9.99 |
| Operating Expenses (CAD) | |
|---|---|
| Annual | $99,999 |
| Annual Per SF | $9.99 |
| Total Expenses (CAD) | |
|---|---|
| Annual | $99,999 |
| Annual Per SF | $9.99 |
| Net Operating Income (CAD) | |
|---|---|
| Annual | $99,999 |
| Annual Per SF | $9.99 |
PROPERTY FACTS
Sale Type
Investment
Property Type
Retail
Property Subtype
Building Size
17,672 SF
Building Class
B
Year Built
2008
Cap Rate
7%
Percent Leased
100%
Tenancy
Multiple
Building Height
1 Story
Building FAR
0.31
Lot Size
1.29 AC
Zoning
GC - General Commercial
Parking
70 Spaces (3.96 Spaces per 1,000 SF Leased)
Frontage
192’ on S IH-35
AMENITIES
- Bus Line
- Freeway Visibility
- Signage
- Waterfront
- Air Conditioning
- Smoke Detector
DEMOGRAPHICS
Demographics
1 Mile
3 Mile
5 Mile
15 min drive
2024 Population
543
20,253
53,732
105,464
2029 Population
729
26,926
69,575
162,942
2024-2029 Projected Population Growth
34.3%
33.0%
29.5%
54.5%
Median Age
38.8
34.1
30.7
29.9
College Degree + Higher
28%
28%
31%
21%
Daytime Employees
3,325
14,131
24,437
40,728
Total Businesses
257
1,343
2,730
4,044
Average Household Income
$90,263
$72,977
$71,950
$61,751
Median Household Income
$69,374
$53,014
$49,748
$39,985
Total Consumer Spending
$7.6M
$231.2M
$552.4M
$1.1B
2024 Households
236
8,492
20,018
42,300
Average Home Value
$367,803
$306,835
$280,422
$288,044
$ values in USD
NEARBY AMENITIES
RESTAURANTS |
|||
|---|---|---|---|
| Cinnabon | Bakery | - | 5 min walk |
| Schlotzsky's | Bakery | - | 5 min walk |
| Chipotle | - | - | 5 min walk |
| Whataburger | - | - | 6 min walk |
| Cody's Bistro & Lounge | Bistro | $$ | 7 min walk |
| Shake Shack | Fast Food | $ | 7 min walk |
| Johnny Rockets | Burgers | - | 11 min walk |
RETAIL |
||
|---|---|---|
| Build A Bear Workshop | Toys | 5 min walk |
| 7-eleven | Convenience Market | 5 min walk |
| Calvin Klein | Unisex Apparel | 5 min walk |
| LOFT | Ladies' Apparel | 6 min walk |
| Birkenstock | Shoes | 6 min walk |
| West Elm | Furniture/Mattress | 6 min walk |
| Disney Store | Children Apparel | 6 min walk |
| Cole Haan | Shoes | 7 min walk |
| Polo Ralph Lauren Factory Store | Unisex Apparel | 11 min walk |
HOTELS |
|
|---|---|
| Residence Inn |
111 rooms
4 min drive
|
| Courtyard |
97 rooms
4 min drive
|
| Holiday Inn Express |
88 rooms
4 min drive
|
| Embassy Suites by Hilton |
283 rooms
4 min drive
|
| Wingate by Wyndham |
106 rooms
7 min drive
|
PROPERTY TAXES
| Parcel Number | R27246 | Total Assessment | $9,761,156 CAD (2025) |
| Land Assessment | $1,352,909 CAD (2025) | Annual Taxes | -$1 CAD ($0.00 CAD/SF) |
| Improvements Assessment | $8,408,246 CAD (2025) | Tax Year | 2026 |
PROPERTY TAXES
Parcel Number
R27246
Land Assessment
$1,352,909 CAD (2025)
Improvements Assessment
$8,408,246 CAD (2025)
Total Assessment
$9,761,156 CAD (2025)
Annual Taxes
-$1 CAD ($0.00 CAD/SF)
Tax Year
2026
SALE ADVISORS
SALE ADVISORS
Mike Reyna, CCIM, CPM, CRE, President
Mike began his real estate career in 1981 as an appraiser. In 1991, after serving as Executive Vice President of a regional appraisal firm, he founded Michael E. Reyna & Associates, Inc (now known as MRA Appraisal Co.), a full-service appraisal and consulting company where he continues to serve as Chairman of the Board.
After several successful years as Managing Partner with Henry S. Miller Commercial – San Antonio, Mike established TC Austin Realty Advisors in 1996. Named after his two sons, the company has grown from just two agents into a specialized brokerage and investment firm, currently overseeing sales and management exceeding $500 million. The firm has built a strong reputation for market expertise, client service, and long-term investment strategies.
Mike is a graduate of St. Mary’s University with a Bachelor’s degree in Real Estate Management. Over the course of his career, he has also earned some of the industry’s most respected professional designations, including CCIM (Certified Commercial Investment Member), CPM (Certified Property Manager), and CRE (Counselor of Real Estate). These credentials reflect both his technical expertise and his commitment to advancing professional standards in real estate.
His industry leadership includes serving as Chairman of the San Antonio Board of REALTORS® (SABOR) and as a Director of the Texas Association of REALTORS® (TAR).
After several successful years as Managing Partner with Henry S. Miller Commercial – San Antonio, Mike established TC Austin Realty Advisors in 1996. Named after his two sons, the company has grown from just two agents into a specialized brokerage and investment firm, currently overseeing sales and management exceeding $500 million. The firm has built a strong reputation for market expertise, client service, and long-term investment strategies.
Mike is a graduate of St. Mary’s University with a Bachelor’s degree in Real Estate Management. Over the course of his career, he has also earned some of the industry’s most respected professional designations, including CCIM (Certified Commercial Investment Member), CPM (Certified Property Manager), and CRE (Counselor of Real Estate). These credentials reflect both his technical expertise and his commitment to advancing professional standards in real estate.
His industry leadership includes serving as Chairman of the San Antonio Board of REALTORS® (SABOR) and as a Director of the Texas Association of REALTORS® (TAR).
Troy Van Brunt, Vice President of Operations
Troy learned the value of investing in real estate at a young age. He began his real estate career after high school obtaining his real estate license at the age of 18. Through his father, a veteran real estate agent and investor, he learned the fundamentals of client relations and property management. After finishing his B.A. in Communications at College Station, Troy eventually relocated back to his hometown of Laredo to work alongside his father and eventually become a real estate appraiser and sales analyst for Webb County Appraisal District. His passion for problem solving and analyzing data led him back to school to pursue an MBA in Finance. After graduation, Troy relocated to San Antonio, where he began his specialization in commercial real estate financial analysis. Under the leadership of Michael E. Reyna, he builds financial-analysis models for each acquisition, development projects and commercial investments for all his client’s investment needs in the commercial industry.
CONTACTS
-
Mike Reyna, CCIM, CPM, CRE -
Troy Van Brunt -
Emmanuel Rodriguez -
TC Austin Realty Advisors
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The Palms Shopping Center | 3941 S Interstate 35
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