The energy in Austin in October is unmatched. With a new major hospitality project breaking ground downtown and the City looking for feedback on how it can shape economic development growth, Downtown Austin’s future is happening now. Here’s the latest in Downtown Austin’s economic development:
1. DAA Advances Advocacy for a Coordinated Response to Homelessness
Featured in the Austin Business Journal, the Downtown Austin Alliance is advancing policy and funding solutions to address homelessness, behavioral health, and downtown safety. Through its support of the No Wrong Door initiative, DAA is helping bring together 17 public, private and nonprofit partners to connect people with complex needs to coordinated crisis care, healthcare, housing and ongoing support – reducing repeated cycles through emergency rooms, jails and homelessness. This work reflects DAA’s commitment to collaborative, data-informed solutions that improve outcomes for vulnerable residents while keeping downtown’s public spaces safe and welcoming for everyone.
2. City Invites Community Input on Economic Development Policy
Austin Economic Development is inviting Austinites, businesses, workers, entrepreneurs and community partners to help inform the City’s developing Economic Development Policy through an online survey.
The City is seeking input on topics including:
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What successful economic development should look like for Austin;
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Present and emerging economic opportunities and challenges Austin should focus on in the coming years;
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City tools, services and resources that can help businesses start, stay, grow and invest in Austin;
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Community benefits the City should prioritize as Austin grows and attracts new investment; and
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The industries, businesses and cultural activities that make Austin unique and what Austin should be known for in the future.
3. DAA’s Construction Mitigation Grant advances Downtown’s Economic Development Strategy
The Downtown Austin Alliance’s Construction Impact Relief Grant (CIRG) Program demonstrates the value of direct financial assistance, marketing support, technical assistance and temporary signage in helping businesses navigate construction-related disruptions. In its first cycle, the program distributed more than $70,000 to eight businesses. All recipients reported stabilizing revenues and retaining employees, while 75% reported increased foot traffic. These results illustrate that construction mitigation helps sustain jobs, preserve storefronts, and maintain a vibrant business district throughout downtown’s construction period. Apply for the next round here.
4. October: Downtown Austin’s Peak Season for Tourism
October is one of Downtown Austin’s most vibrant months, as Austin City Limits Music Festival (ACL), Formula 1 United States Grand Prix and University of Texas football bring visitors, fans and energy to the city. Together, these major attractions generate nearly $2 billion in economic impact, creating significant demand for downtown hotels, restaurants, retail, entertainment and local businesses. This seasonal surge underscores downtown’s role as a critical economic engine and highlights the opportunity to convert peak-season visitation into sustained economic activity, stronger businesses and year-round vitality.
5. Updates on Retail & Tenant Improvements (last 30 days)
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17 TDLR permits were filed for downtown in September 2026, totaling 628,850 square feet and costing $16,198,648
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Nobody’s Business is open now on Lavaca
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Charles Oyster House is coming soon on Rainey
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Chistā is coming soon on Rainey
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Punch Bowl Social closed on Congress Ave
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Saturn Bar closed on Congress Ave
6. Embassy Suites/Tempo Hotel Breaks Ground
Construction kicked off in mid-September for a dual-branded Hilton hotel at 415 Lavaca Street. The project is being developed by Atlanta-based Peachtree Group and Austin-based Merritt Development Group and will be 30 stories tall with 480 hotel rooms. Amenities at the hotel will include a two-story restaurant, a rooftop bar, an Embassy Suites restaurant and bar, a Tempo cafe, meeting space and a fitness center.
7. Ester’s Follies and Royal Blue Grocery Receive Support
Austin City Council approved four economic development agreements through Austin Economic Development’s Placed-Based Enhancement Program. Of the four businesses supported, two were downtown legacy businesses: Ester’s Follies and Royal Blue Grocery. This Chapter 380 program aims to provide commercial affordability relief focused on local small businesses, legacy businesses, non-profits, cooperatives, and those in the creative sector. Cultural Preservation, Category 3, is actively accepting applications – seeking to support retention and enhancement of music venues, creative spaces and legacy businesses to enhance operational resilience and mitigate long-term displacement pressures. To learn more or apply, inquire here.
As always, you can contact us at economicdevelopment@downtownaustin.com for economic development opportunities in Downtown Austin.