New Logistics Center Coming to Kyle, TX

The two-building, 400,000-square-foot distribution and fulfillment center will be built in phases by a joint venture comprising Hillwood Properties, HPI Real Estate Services & Investments and Kyle officials.

Some 20 miles south of Austin, Texas, a new commerce area is taking shape. Called Hays Commerce Center, this new mixed-use development is spread across 108 acres on the west side of Interstate 35 between Loop 4 and Kyle Crossing.

Here, Hillwood Properties, HPI Real Estate Services & Investments and officials from area municipalities broke ground on Hays Logistics Center, a two-building distribution and fulfillment center totaling more than 400,000 square feet of leasable space. The property will be built on a speculative basis, triggered by Austin’s evolving e-commerce and logistics sectors. Construction will unfold in phases, starting with Building 1, a 220,000-square-foot facility scheduled for delivery in the last quarter of 2018.

Looking for tenants

Tenants at the center are being secured—Alsco, a provider of professional textile rental services, acquired an eight-acre parcel at Hays Commerce Center in 2017. The firm will open a new distribution center, which is expected to provide about 250 jobs over the next five years.

The project was possible thanks to the city of Kyle, Hays County and the Hays Consolidated school district’s approval on a freeport exemption, which means that the companies don’t have to pay inventory tax on qualified goods that are shipped out of state within 175 days.

“Our goal as a city is to be a location where you can enjoy a high quality of life while being able to work within your community,” Kyle Mayor Travis Mitchell said in prepared remarks. “The availability of speculative space in Kyle enhances our ability to attract and retain employers of choice.”

“Kyle is in the heart of the I-35 corridor and, with 500 percent increase in population since 2000, is one of the fastest-growing cities in one of the most dynamic regions in the country today,” added Mike Berry, president of the business unit at Hillwood. “With the available workforce and desirable location, it just makes sense to invest in this area.”

Video courtesy of HPI Real Estate Services & Investments