Dripping Springs Is Getting a Major New Shopping Center: What We Know About Headwaters East
Shopping, dining, and everyday conveniences are headed to the east side of Highway 290. Here is what has been announced, what is still to be decided, and what it could mean for our community.
HEADWATERS EAST AT A GLANCE | |
~300,000 square feet of planned retail | ~43 acres along East Highway 290 |
~38,000 vehicles on Highway 290 daily | Aug 2028 estimated completion per state filing |
If you have driven Highway 290 lately, you already know: Dripping Springs keeps growing, and the east side is about to get a whole lot more convenient. A major new shopping center called Headwaters East is planned near Headwaters Boulevard and Canyonwood Drive, and with several retailers already announced or reported, it is one I am watching closely.
Where Is Headwaters East?
Headwaters East is planned along East Highway 290, within a larger mixed-use development area. Public project filings describe approximately 300,000 square feet of planned retail space across roughly 43 acres.
The commercial leasing agent from Endeavor Real Estate Group makes a strong case for the location. Here is how it describes the surrounding trade area:
~79,837 trade area population | $158,498 median household income |
100,000+ residents across West Austin and East Dripping Springs | |
It also counts approximately 38,000 vehicles traveling Highway 290 every day. For businesses weighing the location, that visibility and access are a major draw.
What Stores and Restaurants Are Planned?
Several recognizable names have been announced or reported as planned tenants:
 |  |  |  |
~50,000 SQ FT Reported by the Austin Business Journal in October 2026. | ~25,001 SQ FT CoStar reported the retailer signed a lease. | The restaurant confirmed plans for a location near Highway 290 and Canyonwood Drive. Breakfast tacos on the east side? Yes, please. | A planned sports and entertainment facility tied to the broader Headwaters development, advertising basketball, volleyball, pickleball, fitness, and family entertainment. |
Opening dates for the retail tenants have not been publicly confirmed.
The leasing agent brochure also shows smaller shops, restaurant spaces, end-cap units, and a potential drive-through. Those spaces could bring in a broader mix of local and regional businesses beyond the big names, though the final tenant lineup is still subject to change.
Still a Question Mark: Grocery
A grocery space appears in the city's planning documents, but no grocery operator has been publicly identified in the information I reviewed.
When Will It Open?
The project's Texas Department of Licensing and Regulation filing lists these estimates:
Construction Start
January 2027
Estimated Completion
August 2028
Keep in mind these are filing estimates, not guaranteed milestones or opening dates. Individual businesses may open on their own schedules.
Quick Clarification: What About Target?
The new Target announced for Dripping Springs belongs to The Village at Dripping Springs, a separate development next to the existing H-E-B. It is not part of Headwaters East.
What Could This Mean for Dripping Springs?
According to the commercial leasing agent, the Headwaters community is planned to reach approximately 1,100 homes, marketed in the $500,000 to $1.5 million range. They also highlight the community's Hill Country setting, outdoor recreation, and municipal utility infrastructure.
As the area grows, more retail and dining close to home could make everyday errands a lot easier for nearby residents. And for buyers comparing neighborhoods, access to shopping, recreation, and major roads is often near the top of the wish list.
New development does not automatically mean home values will rise.
Property values depend on broader market conditions, housing supply and demand, and the characteristics of each individual property and neighborhood. That is exactly why I keep a close eye on projects like Headwaters East. Understanding how our community is changing is a big part of making smart, informed real estate decisions, and I love helping my clients see the full picture.
Thinking about buying or selling in Dripping Springs? Reach out to me to discuss the local market and explore which neighborhoods best fit your goals. |
This article reflects public project filings, reported tenant announcements, and commercial leasing materials available as of October 2026. Plans, tenants, and timelines may change.
Jenn Salladay | Broker Associate | Christie's International Real Estate Lone Star | 512.818.6146
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