XSpace Lands Construction Loan For Woodlands Project

XSpace is spreading the gospel of its souped-up industrial spec suites with a second Texas development.

The Austin-based developer landed a $29 million construction loan to build an 84-suite property in The Woodlands, according to a press release from Marcus & Millichap, which arranged the financing. Adam Mengacci, Travis Headapohl and Matt Polci of Marcus & Millichap’s IPA Capital Markets team represented XSpace in the deal.

The project, at the intersection of Six Pines Drive and Lake Woodlands Drive in The Woodlands Town Center, was designed by architect Francisco Gonzalez Pulido.

The suites are billed as “industrial condos” and “lifestyle industrial,” but they’re not for residential use. XSpace suggests on its website that a suite can be transformed into a showroom, satellite office, podcasting studio, luxury car storage, “man cave” or personal gym. Suites are available for purchase, and buyers can customize their suites.

XSpace’s Austin property, at 4229 North FM 620, offers suites that range in size from 300 square feet to 3,000 square feet. Each suite features drive-up access. The project also has a lounge, commercial kitchen, conference rooms and restrooms with showers.

XSpace said in a statement that the concept caters to “young entrepreneurs who want to own and customize their first office, as well as a more mature owner who might want to scale a business or invest in multi-use storage spaces.”

Suites at the Austin property are priced between $338 per square foot and $461 per square foot, according to LoopNet.

The rise of XSpace speaks to increased demand for non-traditional industrial space outside of big-box industrial parks and truck traffic. XSpace first launched in Australia. Founder Byron Smith told CoStar in 2022 that he and his partner Tim Manson chose to expand in Austin, because its demographics are similar to that of Australia.

Maryland-based WareSpace similarly offers small industrial suites and announced in September plans to increase its presence in Dallas-Fort Worth. The company is converting the former Fry’s Electronics store, at 700 East Plano Parkway, into rental suites ranging from 200 square feet to 2,500 square feet.