Majestic Realty Co. eyes 2 million-square-foot industrial park in San Marcos

Situated between the major markets of Austin and San Antonio, the small town of San Marcos looks to be continuing a major industrial transformation with another speculative project.

California-based Majestic Realty Co. is proposing more than 2 million square feet of speculative industrial space east of I-35 in San Marcos, the Dallas Business Journal reports.

Majestic has also secured approvals for roughly 400 acres of development on Centerpoint Road, east of I-35 and the San Marcos’ outlet malls, according to the publication. The approvals come with incentives to build a large industrial park in the area.

The city of San Marcos has been growing as a manufacturing hub in Texas.

“There is a strong market demand for ready industrial space. We’ve seen a lot of this as a result of the pandemic with supply chain disruptions and companies wanting to have more control over their manufacturing processes and managing inventory,” said Hayden Majestic is no stranger to building out new developments in growing markets in the Lone Star State, having invested over $500 million in a joint venture with Fort Worth-based Hickman to renovate a 115- year old hotel in the 200-acre Stockyards entertainment district.

The industrial park will be part of a massive mixed-use development in San Marcos located 30 miles south of Austin, where fast growth is spilling into the suburbs.

Construction is expected to begin in the first quarter of 2024 on two buildings totaling 200,000 square feet, with the incentives for a minimum of 800,000 square feet of spec development.

According to the publication, experts tout that this general region will eventually become the state’s next huge metroplex as the growth of both Austin and San Antonio bring in people and businesses looking for cheaper housing and greater business opportunities.

[Dallas Business Journal] — James Bell