Walmart to Develop $400M San Antonio-Area Warehouse
It will be the retailer's first distribution facility in the market.
Walmart has filed an application with the Texas Department of Licensing and Regulation to develop a $400 million distribution center totaling 744,433 square feet in Cibolo, Texas, as first reported by San Antonio Express-News.
Construction on Project Theo could start in February 2027, with completion expected in the third quarter of 2029. ESI Group provides design services.
The city approved a 75 percent property tax abatement running for 10 years and a 50 percent rebate of the maintenance and operations property tax for five years, as well as a performance-based sales tax. This amounts to roughly $32.5 million in tax breaks. Additionally, the council established a tax increment reinvestment zone in the area.
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The facility will rise on 126 acres at 3641 S. Santa Clara Road, the former San Antonio Raceway site along Interstate 10 in Guadalupe County. This industrial submarket is among the tightest across the metro, having an industrial vacancy of 5 percent as of September, 560 basis points below the market average, a Cushman & Wakefield report shows.
Walmart’s growing presence in the Lone Star State
Project Theo marks Walmart’s first distribution center in the metro, where the retailer operates 38 stores. However, the company owns another 1.3 million-square-foot warehouse in New Braunfels, Texas, along the Interstate 35 corridor halfway between Austin, Texas, and San Antonio. Walmart filed plans to invest $8 million in that facility’s renovation, with completion expected in September 2027.
As of January, Walmart operated a total of 192 distribution facilities across the U.S., owning about two-thirds and leasing the remainder, according to an SEC filing. In the Lone Star State, the company operates 22 supply chain facilities.
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