Growing Western US Coffee Chain Brews Up Texas Expansion
by: Marissa Luck | CoStar News
A popular Portland, Oregon-based coffee chain is expanding into Texas. It's part of an expansion across the western United States that's been more than a decade in the making.
Black Rock Coffee chose Austin to launch its first Texas location out of convenience. Its vice president of Texas operations, Jeremy Brand, lives in Georgetown, about 30 miles north of Austin, so he said it made sense logistically to start there.
The first Black Rock Coffee in Texas will open in November at Lantana Place in Southwest Austin in a 1,900-square-foot space.
Its next Austin-area locations include: an 1,887-square-foot freestanding location at Gattis School and State Highway 130 in Pflugerville, expected to open in January; and a 1,900-square-foot store on FM 620 and Smyers Lane at the Point at 620 in Round Rock, expected to open in summer 2020. Pfluggerville and Round Rock are both suburbs of Austin about 22 miles north of downtown.
“We focus primarily on outer lying suburbs [as opposed to the urban core], where we can be involved in our local neighborhoods,” Brand said in an email.
And now the specialty coffee chain that focuses on locally sourced ingredients is brewing up more locations in the Lone Star State. Brand said the company is working on "several leases" in the greater Houston area. In the first quarter next year, the company plans to open a café near Cinco Ranch in Katy, about 22 miles east of downtown Houston as well as a location in Sasche, about 26 miles northeast of Dallas.
Black Rock Coffee Bar and its tenant representation brokerage JLL declined to name specific addresses outside of Austin.
Black Rock also is growing its footprint in Arizona, where it recently opened a coffee roaster in Phoenix. The company, which was founded in 2008, now has 65 franchise stores in Oregon, Washington, California, Arizona, Idaho, Nevada and Colorado.
Stand-alone coffee chains can roast up tasty returns for investors. For example, Starbucks real estate is among top performers in sales volume for new construction in the quick-service restaurant sector, according to the Boulder Group’s latest report on the net lease sector.
With a net lease, the tenant pays for most of the property’s operating expenses and landlords get monthly rent. Through the first half of the year, the Boulder Group’s report noted that private investors made up 80% of the buyers for quick-service restaurant real estate.
For the Record: JLL Senior Vice President Jon Switzer represented Black Rock Coffee Bar in the Austin-area leases.