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City of Kyle Announces First-Ever 1 Million Spec Space Facility

Feature Photo: Artist rendering of Kyle/35 Logistics Park. Image: City of Kyle.

Posted: 6-14-2022

Kyle (Hays County)Alliance Industrial Company, a privately held industrial development and investment company that launched in May of 2021, will build the first-ever speculative project of 1 million square feet or more in the Texas Innovation Corridor in the city.

The development will serve as a future home to new and expanding businesses within Hays County. 

“There was no question about our need to be in the City of Kyle,” said Chad Parrish, managing director of Alliance Industrial. “With explosive growth and growing demand for industrial and logistics space in the region, we found ourselves perfectly aligned with the Kyle business community. We’re proud to be bringing the largest-ever speculative space to the Texas Innovation Corridor and bring much-needed infrastructure to the companies that want to be doing business in Hays County.” 

The announcement became official during last week’s Kyle City Council meeting, when the council approved a performance-based grant agreement with the company.

Hays County also entered into a performance-based agreement with the company during a Commissioners Court meeting on Tuesday morning. 

The project, named Kyle/35 Logistics Park, will consist of five state-of-the-art logistics facilities ranging in size from approximately 140,000 square feet to 475,000 square feet. 

The functional building designs feature clear heights ranging from 36 to 40 feet with heavy employee and trailer parking ratios and a mix of single loaded and cross-docked layouts. 

The buildings are designed for single or multi-tenant use and the project can accommodate end-users between 40,000 and 1.4 million square feet.   

VBX had previously reported on the project in December when Alliance Industrial Company was intending to develop the project under the moniker Yarrington Distribution Center under the entity Yarrington Logistics Owner LP.

The estimated cost of the project is $78,771,987 and would consist of: 

  • Building One was a reported area of 224,240 square feet and an estimated cost of $13,803,953.
  • Building Two was reported at 474,397 square feet, with an estimated cost of $24,201,731.
  • Building Three was reported at 347,160 square feet, with an estimated cost of $18,840,671.
  • Building Four was reported at 206,262 square feet, with an estimated cost of $12,704,044.
  • Building Five was reported at 140,300 square feet, with an estimated cost of $9,221,588.

“Developers are building at such an incredibly fast rate in Hays and Caldwell counties that we are now building-to-finish instead of building-to-spec,” said Jason Giulietti, president of the Greater San Marcos Partnership. “Buildings are getting leased before completion, which is a strong sign of economic stability. The scale of demand continues to be unprecedented in our region and companies are able to get to market quickly thanks to the developments being built by these spec developers.” 

This location is the eighth announcement in the Texas Innovation Corridor for fiscal year 2022 (which began October 1, 2021). It joins notable recent speculative space projects such as Buda Midway in Buda, Bearden Investments, Live Oak in San Marcos and NorthPoint Development in Kyle. 

“Hays County is the fastest-growing county in all of Texas for good reason,” said Mark Jones, Hays County commissioner. “The incredible business environment found in the Texas Innovation Corridor is highly conducive for developers like Alliance Industrial Company to bring new investments online and build custom solutions for future companies. This development will create the opportunity for new quality jobs and increase major capital investment dollars to our great county.” 

“This is a milestone achievement for our city and its growth,” said Travis Mitchell, mayor for the City of Kyle. “We welcome Alliance Industrial Company to Kyle as well as the future companies and job creators that will reside in their buildings.” 

VBX Project ID: 2021-8B6E 

Edited from news release.


art@virtualbx.com

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By |2022-06-14T19:42:16-05:00June 14th, 2022|Construction Preview, Feature Story|

About the Author:

Art Benavidez (Construction News Reporter, Central Texas) is a seasoned journalist with over 15-years of experience in writing breaking news and in-depth features at the local level. He honed his research and reporting skills in newspapers and magazines throughout South and West Texas along with expertise in crafting digital content as Managing Editor of New Image Marketing Research Corporation. Benevidez is a Texas native and graduate of UT-RGV.

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