09/18/2026
A few meaningful commercial real estate developments are worth watching around Dripping Springs and southwest Austin:
🏗️ Industrial and flex supply continues to grow. A 92,296-square-foot industrial project at 11089 Fitzhugh Road is scheduled to begin construction this month. That is a significant addition to the corridor, particularly with new flex inventory already coming online at Fitzhugh Road, Darden Hill and Springs Lane.
🏢 Public listings currently show 17 flex properties available in the broader Dripping Springs market. Asking rents generally range from roughly $13–$18 per square foot for functional space and $20–$26+ for newer or more highly finished flex. Despite the growing supply, legitimate contractor space with secured yard remains difficult to find.
🩺 Medical-office rents continue to command a premium. Current offerings range from approximately $29.50 to $40 per square foot, including second-generation medical and dental suites near Sawyer Ranch. That spread is creating an interesting lease-versus-own opportunity for smaller medical, dental, therapy and wellness practices.
🚰 The City of Dripping Springs is also moving forward with additional wastewater planning, including engineering for a major permit amendment and an update to its capital-improvements and impact-fee program. This could eventually affect the value and development potential of commercial land—but every property still needs a site-specific review of capacity, timing and connection costs.
📍One new listing to watch: 3701 US 290 entered the market at $775,000. The property includes approximately 1.96 acres with Highway 290 frontage, existing improvements, a well and septic. It may appeal to an owner-user or buyer looking for a lower-total-cost redevelopment opportunity.
The larger takeaway: conventional flex inventory is expanding, but there are still gaps in the market—particularly smaller owner-user buildings, medical-office condos and functional contractor space with outside storage.
If you own commercial property in Dripping Springs or southwest Austin and want to understand how these projects may affect your property’s value or leasing position, feel free to reach out.
Robert Paine
Repco Realty
[email protected]
