Central Texas suburb to get biggest industrial spec project yet

Alliance will develop 1M square feet of in booming Kyle

Alliance Industrial's Chad Parrish and a rendering of Kyle 35 Logistics (Alliance Industrial)
Alliance Industrial's Chad Parrish and a rendering of Kyle 35 Logistics (Alliance Industrial)

Alliance Industrial is headed to Kyle, Texas, where it will develop what it says is the first speculative project of its size in the region.

The city’s code name for the upcoming development is “Project Fire Engine Red,” the Austin Business Journal reported. Alliance — which uses the more demure designation “Kyle 35 Logistics Park” — says it will be the first-ever speculative project of 1 million square feet or more in the region between Austin and San Antonio.

The Kyle 35 Logistics Park off I-35 near the corner of Logistics Drive and South Goforth Road will have five logistics facilities ranging from 140,000 square feet to 475,000 square feet. The buildings will have clear heights of 36 feet to 40 feet with single-loaded and cross-docked layouts and employee and trailer parking. The buildings are designed for single or multiple tenants. They will be able to accommodate end users that require between 40,000 and 1.4 million square feet.

The city of Kyle, a booming part of the Austin metro area about 50 miles north of San Antonio — along what some are calling the “Texas Innovation Corridor” — gave Alliance incentives for the project in June, as did the county.

Hays County agreed to property tax abatements with an estimated value of $3.4 million, capped at 75 percent over a 10-year period. City incentives also include a tax rebate of 75 percent for 10 years, not to exceed about $4.9 million. Both governments approved performance-based agreements with Yarrington Logistics Owner, a subsidiary of the development company.

Officials said the project has initiated a $115 million capital investment. Developers estimate the industrial park will bring about 1,500 jobs to the area with average annual pay of around $41,600.

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Alliance Industrial launched in May and is headquartered in Houston. It’s part of Phoenix-based Alliance Residential, the developer behind Broadstone and other planned communities.

Kyle has been one of the fastest-growing U.S. cities in the past two decades. Its population grew from 5,314 residents in 2000 to 51,789 in 2021, according to census data.

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[ABJ] — Cindy Widner