EastGroup plans Round Rock warehouse amid local pushback

Georgetown city officials have expressed concerns over limited space

Sofia Nelson, Marshall A. Loeb, warehouse
Austin Planning's Sofia Nelson, EastGroup's Marshall A. Loeb (EastGroup, Getty, Georgetown Health Foundation)

EastGroup Properties threw billions into Texas’ industrial real estate pipeline in 2022.

Now, the Mississippi-based firm has filed plans to develop a $10 million project called 350 Texas Industrial, the Austin Business Journal reported. The near 128,700-square-foot warehouse spec complex is planned to go up in Round Rock, a suburb of Austin, costing about $78 per square foot. The two-building project would sit on about 9 acres at 350 Texas Avenue.

Round Rock is the most active submarket for industrial development in Austin, according to JLL’s Q4 report. About 5.5 million square feet of industrial space was under construction in the submarket in the last three months of 2022. East Austin had 4.6 million square feet under construction,but no other submarket comes close.

Not everyone is thrilled.

While northern suburbs are hotbeds of warehouse/industrial development, local officials are pushing back.

During a Georgetown City Council workshop in October, the city’s planning director, Sofia Nelson, expressed reservations about the increased amount of industrial developments seeking entitlements for warehouse and industrial space over the past three years. About 504 acres and 5.6 million square feet of warehouse and distribution has made its way through the city’s zoning and building permit processes since 2019, she told the council.

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There is concern that the city is running out of space. On top of that, these developments — particularly warehouses — use huge swaths of land without meaningful contributions to the job market or important industries like advanced manufacturing, life sciences and professional services.

“The problem we have here is a good problem,” said Mayor Pro-Tem Kevin Pitts, who suggested that Georgetown attract complementary development and diversify its economy to shield it from economic downturn.

Dallas-based Pross Design Group is attached as the architect for this new project, 350 Texas Industrial, which would take land previously occupied by Oncor Electric Delivery. The company is currently transitioning to a new location in Hutto, an Oncor spokesperson told the Austin Business Journal.

Georgetown city officials are still approving industrial projects. For instance, Bridge Investment Group was approved for an annexation and zoning request for the 92-acre Bridge Business Park, which will include flexible spaces.

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