The Palms Shopping Center 3941 S Interstate 35 17,672 SF 100% Leased Retail Building San Marcos, TX 78666 For Sale 7% Cap Rate

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.