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The Texas Innovation Corridor offers multiple large, graded, cost-competitive sites for major distribution centers and is ideal for warehousing and storage firms. With growing speculative space designed for major companies like Amazon, Lowe’s, and FedEx, Hays and Caldwell Counties have accommodating spaces and infrastructure in place to support regional and national distributors from coast to coast.
This region is also a highly competitive location for Regional Distribution firms primarily focused on warehousing and distribution operations for companies with large client bases in Texas, particularly Central Texas.
Here are a few of the companies and employers within the Regional Distribution sector:
Amazon has been a major driver of distribution and supply chain business in the Hays and Caldwell region, selecting San Marcos, Kyle and Buda for a variety of fulfillment and sorting centers.
The H-E-B Distribution Center, located in San Marcos, is also one of the region’s largest employers and serves the privately held supermarket chain, H-E-B Grocery Stores.
The Lowe’s Distribution Center, located in Kyle, occupies 120,000 square feet at the Plum Creek development and distributes home improvement products for Lowe’s throughout the Central Texas region.
Announced in 2021, a 200,000+ square foot FedEx Distribution Center will be built in Kyle, distributing shipments from across the country.
There are more than 240 supply chain-related businesses in the Texas Innovation Corridor, employing more than 12,000 workers. Annual wages for workers in this industry equate to $66,581, which is lower than the Texas average of $92,815 and national average of $86,284. The largest warehousing and distribution employers in the region are Amazon, FedEx, H-E-B, and Lowe's.
The Texas Innovation Corridor's ideal location with access to Interstate Highways 35 & 10, Highway 130, and three nearby airports offers companies a best-in-the-nation location to rapidly distribute goods across the entire United States. The region's Transportation and Warehousing sector is booming as a result, growing by 56% over the last five years, far outpacing national trends. With a location quotient of 3.96 for warehousing, and over 1.5 million square feet of new industrial and logistics space completed in the last 12 months, our region is poised to continue its trend as the premier location for US and International companies.
I-35 – which runs from the Mexican border in Laredo, TX to Duluth, MN – is the central roadway of the Texas Innovation Corridor. It is considered a border-to-border Interstate, allowing distribution throughout the central part of the United States.
State and federal investments to improve FM 110 and State Highway 130 through Hays and Caldwell Counties are also notable place-based advantages. FM 110 will improve connectivity of the two-county region by connecting I-35 to south San Marcos, running along the eastern edge of the city and Hays County into Caldwell County. Additionally, State Highway 130 helps alleviate traffic congestion on I-35 by providing a high-speed alternate route (with speed limits of 85 MPH) for drivers between Austin and San Antonio. It also connects San Marcos to I-10, which stretches from California to Florida.
The region is within a short drive of two international airports, Austin-Bergstrom International Airport (ABIA) and San Antonio International Airport (SAT). Among 795 U.S. airports, the Austin airport ranks 46th for freight cargo capacity and San Antonio ranks 33rd. Both airports are located closely to I-35, which runs through the middle of the Texas Innovation Corridor.
Another key supportive asset is the San Marcos Regional Airport, which provides available periphery land for development, state-of-the-art navigation systems, a Foreign Trade Zone Magnet Site, and planned infrastructure improvements.
The San Marcos area, via its proximity to two international airports, provides direct access to a major north-south interstate and close accessibility to an east-west interstate, thousands of acres of available development sites already positioned for distribution opportunities, and lower land costs can defensibly position itself as the hub of Central Texas warehousing and distribution.