2,000-Acre Industrial Project Moves Forward Near Austin

Aerial view of the project’s first phase. Image courtesy of Lane Development and Partners Real Estate

Scarborough Lane Development and Partners Real Estate have taken another step toward the groundbreaking of a 2,000-acre industrial project in San Marcos, Texas. AXIS Logistics Park, formerly known as the SMART Terminal, is set to become one of the largest master-planned industrial properties in the U.S.

Scarborough Lane recently filed a request with the City of San Marcos for the annexation of 620 acres that are currently outside its limits. Council members gave their initial approval, with the definitive decision expected by May 16.

Another request involved the rezoning of the property for heavy industrial use; the council will decide on the matter on July 3. Approximately 735 acres at the Caldwell County site are already zoned for industrial use.

An industrial mega-development in the Texas Triangle

Scarborough Lane, which is also the general manager for AXIS Logistics Park, purchased the site in the third quarter of 2021. The project has been in the making since at least 2018, according to Community Impact.

Slated to come online in three phases, with the first comprising some 850 acres, AXIS will encompass both speculative and build-to-suit facilities. The Class A development is slated to serve as a regional distribution hub for retailers, suppliers and manufacturers and plans include water and wastewater infrastructure and a 600 MW electrical substation with a 356 kV transmission line.

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The co-developers are working with the San Marcos and Caldwell County governments to market space at the park to national and international industrial tenants. John Colglazier, Gray Gilbert, Chris Haro, Kyle Kennan and John Simons of Partners Real Estate are the lead brokers for the project.

The site is within the Texas Triangle, a megaregion encompassing the Austin, Dallas-Fort Worth, Houston and San Antonio metropolitan areas. The project offers direct access to Loop 110, as well as easy access to interstates 35 and 10, as well as to Texas State Highway 130. Union Pacific Railway, the BNSF Railway and San Marcos Regional Airport are near, offering potential rail and shipping capabilities.

San Marcos’ industrial pipeline

San Marcos had only about 100,000 square feet of industrial space under construction as of May, according to CommercialEdge data. However, its planned and prospective projects pipeline amounted to more than 3.6 million square feet.

One of the planned projects involves the construction of a three-building industrial property set to total 663,460 square feet. Ledo Capital Group and St. Clair Commercial Real Estate recently acquired 45.7 acres for its development.

Another significant project is a media park totaling 820,000 square feet, being developed by Hill Country Group. Upon completion, the campus is expected to become the state’s largest virtual production, TV, film and streaming studio.