Amazon Inks Full-Building Lease in Metro Austin

The e-commerce giant is planning to open a new sortation center within Majestic Realty’s Kyle Cross Business Park.
Kyle Crossing Business Park. Image courtesy of Majestic Realty Co.

Amazon has expanded its distribution network in the Austin metro area once again, with the signing of a full-building lease for an upcoming sortation center that is scheduled to open later this year in Kyle, Texas. The e-commerce giant has agreed to occupy the 307,840-square-foot Building 2 within Majestic Realty Co.’s Kyle Crossing Business Park.

READ ALSO: Amazon Plans $250M Austin-Area Fulfillment Center

Located at 1980 Kohler Crossing, Amazon’s latest sortation center is expected to bring 200 jobs to the local area once up and running. Majestic Realty broke ground on the business park in late 2018 and constructed Building 2 as a cross-dock facility with 36-foot clear heights, 89 dock-high doors, 418 auto parking spaces and 222 trailer parking spots.

“During these very difficult times, Amazon is playing a key role helping keep America fed, safe and healthy,” Brian Masterman, senior vice president at Majestic, told Commercial Property Executive. “We are grateful for the dedication of the Amazon front-line team and are proud to play a very small part in their effort.”   

While Amazon will be taking the entirety of Building 2, Kyle Crossing also has another 227,273-square-foot industrial building up for lease. Masterman told CPE that Building 1 has ongoing negotiations with multiple potential tenants. Masterman also said in prepared remarks that Kyle Crossing was a brand new facility, with a location between two of the fastest-growing metro areas in the U.S. Situated between Austin and San Antonio, Kyle Crossing is located one block away from Interstate 35, and roughly a 20-mile drive to downtown Austin.

Earlier in July, Amazon also unveiled plans for a fulfillment center that will be at least 820,000 square feet in Pflugerville, Texas. The company is investing $250 million to develop the new facility, which will be situated 15 miles from downtown Austin.

Part of Plum Creek

Amazon’s sortation center in Kyle will also be a part of Majestic’s mixed-use master-planned project called Plum Creek. The 2,200-acre project already includes residential developments, office and industrial space, retail storefronts and medical buildings. Plum Creek’s roster currently spans many medical offices, retailers like Walgreens and TrustTexas Bank, and Austin Community College’s Hays Campus.

Majestic has only developed less than half the land within Plum Creek but a mixed-use town center, more housing projects and more than 8 million square feet of commercial developments are planned.