EastGroup Properties is plotting its next industrial development in Austin’s suburbs.
The Mississippi-based firm, led by CEO Marshall Loeb, wants to build a 600,000-square-foot facility, dubbed Heritage Grove, in fast-growing Leander, the Austin Business Journal reported.
The 44-acre development site, at 500 Heritage Grove, is about 25 miles north of Austin. EastGroup hopes to start construction later this year, with plans to deliver the first 183,000-square-foot phase in 2025.
Heritage Grove will be developed as a multi-tenant facility, with leases ranging from 15,000 square feet to 100,000 square feet. It’s a speculative project, meaning no tenants are lined up yet.
The company’s decision to invest in Leander is driven by the city’s population density and location, with convenient access to Austin via U.S. 183. The project aligns with EastGroup’s broader strategy of targeting high-growth suburban markets, evident in the firm’s ongoing projects in nearby Round Rock and Buda, along with land it owns in Pflugerville.
Collaborators in the Heritage Grove project include Dallas-based architect Pross Design Group, civil engineering firm Langan, and San Antonio-based general contractor RC Page Construction. Dallas-based Stream Realty Partners will handle leasing, while EastGroup will oversee property management, the outlet said.
Leander’s rapid growth, evidenced by an 11 percent year-over-year population increase, positions it as one of the fastest-growing cities in the United States. The city’s development landscape comprises several large-scale commercial ventures like the Northline development, which is expected to transform the city’s downtown area with a mix of retail, office and residential spaces.
The northwest submarket, including Leander, had nearly 257,000 square feet of industrial space under construction through the third quarter, according to Partners Real Estate. The northwest submarket’s industrial vacancy rate was 4.8 percent, down from the Austin-area average of 8.2 percent.