Beyond Austin: Emerging Markets Along the I-35 Corridor

While Austin has dominated Texas real estate headlines for years, the most compelling investment opportunities are increasingly found along the broader I-35 corridor. At PlaceMKR, we've been strategically expanding our presence in these high-growth markets, identifying value where others have yet to focus.

The I-35 Advantage

The I-35 corridor from Dallas through Austin and San Antonio to Laredo forms Texas' primary economic spine, connecting over 10 million residents across diverse but interconnected economies. This transportation artery has several distinctive advantages:

1. Connectivity: Direct access to major Texas metros and international markets ‍
2. Logistics efficiency: Critical link in the North American supply chain ‍
3. Population growth: Capturing the majority of Texas' inbound migration ‍
4. Economic diversity: Supporting manufacturing, technology, healthcare, and logistics ‍
5. Mexico trade: Facilitating over $800 billion in annual cross-border commerce

Strategic Markets Along the Corridor

Our team has identified several high-potential markets along I-35 that offer compelling risk-adjusted returns:

New Braunfels

Located strategically between San Antonio and Austin, New Braunfels has experienced explosive growth while maintaining relatively affordable real estate values. Our recent 130-acre mixed-use acquisition positions us to capitalize on the continued expansion of this dynamic market.

San Marcos

Home to Texas State University and positioned at the convergence of I-35 and key arterial roads, San Marcos offers compelling opportunities in multifamily, retail, and industrial development. The education anchor provides stability while the location offers long-term growth potential.

Temple/Belton

The Temple/Belton area north of Austin has emerged as a logistics and healthcare hub with strong fundamentals and relatively low entry costs. Recent infrastructure improvements have enhanced connectivity while maintaining cost advantages over Austin proper.

Kyle/Buda

These rapidly growing communities south of Austin benefit from Austin's expansion while offering more attainable housing and development costs. Strategic land positions in this corridor have shown exceptional appreciation as development pushes southward.

Investment Approach: Early Positioning

Our strategy along the I-35 corridor focuses on:

1. Land banking: Acquiring strategic parcels ahead of market recognition ‍
2. Infrastructure alignment: Identifying sites benefitting from planned improvements ‍
3. Entitlement creation: Adding value through zoning and entitlement work ‍
4. Diversified development: Matching product types to specific submarket demands ‍
5. Strategic exits: Knowing when to develop ourselves versus selling entitled land

The Capital Advantage

While institutional capital remains heavily concentrated in core Austin, Dallas, and San Antonio markets, we've found that emerging markets along I-35 often offer:

• 100-200 basis point higher yields on stabilized assets
• 25-40% lower land acquisition costs
• Less competition for prime sites
• More favorable local development policies
• Comparable rental growth trajectories

Looking Forward

As Texas continues to grow, we anticipate the I-35 corridor will remain the primary beneficiary of population and economic expansion. Our team continues to identify strategic opportunities along this vital corridor, positioning our portfolio to capitalize on Texas' sustained growth trajectory.

By looking beyond the established markets to emerging high-growth nodes, we're able to deliver superior risk-adjusted returns while maintaining the benefits of the broader Texas economic expansion.