[ad_1]
Just south of Austin, officials in the city of Kyle are savoring their slice of the Tesla pie.
This week, Kyle Mayor Travis Mitchell announced that Tesla has leased nearly 1 million square feet of the total 1.4 million square feet of industrial space in warehouses at the new Kyle 35/Logistics Park. The large development is on Kyle’s southeast side, along Interstate 35 near Logistics Drive and South Goforth Road.
Mitchell made the announcement at the end of the Kyle Area Chamber of Commerce’s State of the City Address on Tuesday.
“I was thinking that over the development of this project that eventually, potentially, we could get a major Tesla supplier or manufacturer to come and take down the percentage of this site. I’m sad to report that did not happen,” Mitchell said, and then after a pause delivered the punch line: “What we got instead was Tesla.”
More:Austin-based Tesla names new CFO as ‘Master of Coin’ Zach Kirkhorn steps down
Mitchell told the audience that when news first broke in 2020 that Tesla was bound for Austin, where it now has its huge gigafactory with electric vehicles rolling off the assembly line, the region — Kyle included — was buzzing with excitement due to the anticipated ripple effects generated when a major employer enters the market. And the so-called Tesla effect, from spinoffs related to the subcontractors, suppliers and manufacturers that follow, is exponentially greater than that of some other employers, Mitchell said.
“Over the last two years, we’ve announced five new Tesla suppliers and affiliated businesses locating in the city of Kyle,” Mitchell said. Those include manufacturing, logistics and technology development companies, and the recent addition of a research and development firm.
City officials said they have not been given details on what operations Tesla plans at the Kyle 35/Logistics Park, and a Tesla contact did not respond to an email.
Mitchell said Tesla will be “a great brand” for Kyle, which is booming along with other parts of the five-county Austin region spanning Georgetown to San Marcos. Like other sectors of the real estate market, industrial development is mushrooming across the region. Mitchell said Tesla’s presence, along with other growth in Kyle, will add to the city’s transformation from a bedroom community into a thriving part of the larger Austin region.
There’s a way to escape:Arizona man said he was trapped in Tesla on 100-degree day
Central Texas’ growing population, increased manufacturing from companies including Tesla and Samsung and other factors continue to fuel strong demand for industrial space. That demand is expected to continue for the foreseeable future, experts say.
Houston-based Alliance Industrial Co. is the developer of the Kyle 35/Logistics Park, located at 24801 Interstate 35.
In June 2022, Hays County Commissioners and the Kyle City Council inked a performance-based agreement with Alliance, moving the project forward. The groundbreaking came in June 2022.
Over the past year, the Austin market has seen 10.2 million square feet of industrial space come to market, a majority of which is classified as distribution space, said Israel Linares, senior market analyst in Central Texas with CoStar Group, a commercial real estate data firm.
“Austin’s industrial market continues to show strong demand, despite some moderation in leasing velocity compared to one year ago,” Linares said. “In a broader historical context, demand is still outpacing pre-pandemic averages.”
[ad_2]
Source link