Businesses open on Rainey Street as district enters its next era

Construction cranes down, business up

By Sahar Chmais – Staff Writer, Austin Business Journal
Jan 27, 2026
Photo by Dave Creaney – The Rainey Street Historic District pictured from the sky in December.

The final phase of the Rainey Street Historic District is in its last stretch as construction cranes move on and openings begin.

After several years of construction that thwarted visitors and led to a steep decline in alcohol sales and activity — Rainey’s economy for years thrived on its bar-hopping culture — the district is beginning to take on its new form.

For the most part, the neighborhood is now walkable without having to dodge construction. New life is emerging on Rainey Street with fresh restaurants, bars and coffee shops, as well as an effort to bring communal activities. This is all part of the plan to turn Rainey into an 18-hour district where residents and tourists can grab breakfast tacos early in the morning, dine, work from third spaces, shop at a farmers market, run by the lake, party at night and still have a late-night bite at a food truck.

During the day, people can be seen running on Rainey Street’s trailhead, while others hang out at a newly minted coffee shop and passersby of varied ages walk the street. Social media influencers have also begun filming more content in the area as businesses debut.

Rainey is about 70% to its final form, said David Kanne, CEO of LV Collective, which recently opened the 48-story Paseo tower at 80 Rainey St. Kanne predicts the district will be 90% complete by September. It’s come a long way from being a quirky strip of bars and restaurants — and an even longer way from its original status as a quiet Central Austin neighborhood with old and small homes.

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Places to eat, drink and be merry

The Modern Bar, part of The Modern condo tower, is slated to open its 5,000-square-foot space in early 2026, according to Kevin Burns.

The founder and CEO of Urbanspace has played a notable role in transforming the district. The space in the mixed-use tower — likely the last condo tower that will be delivered downtown this decade — will offer a morning coffee service and carry into the night as a sophisticated hangout to grab cocktails, Burns said. Over half of the tower’s roughly 300 market-rate condos have been sold, meaning more foot traffic for nearby businesses.

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