AUSTIN (KXAN) — Crema Bakery in south Austin is closing its doors for good Saturday after nearly a decade of serving the community. They said rent was just too high, and they couldn’t keep up with the rising cost.
Co-owner Janessa Tomberlin said they’re paying $7,000 in rent every month for their space. It’s a price she said they just couldn’t afford anymore.
“Our landlord expected us to sign a five-year lease in this economy, and we didn’t even know if we could survive another couple of months, much less five years,” Tomberlin said.
Along with rent increases, they were dealing with higher prices for ingredients as well.
“Simple things like cups has more than tripled in the last year,” Tomberlin said.
According to data from commercial real estate information company, Costar Group, rental rates for retail spaces in Austin have increased 5% since 2019.
In many retail leases, there are escalation clauses that can raise the rent by 3-4% per year.
Crema Bakery is just one of many feeling the impact. For them, Tomberlin said it means closing a chapter they weren’t prepared to end.
“We’ll miss you guys,” Tomberlin said to a customer.