The Rise of the Austin-Waco Corridor

The New Corridor IN THE TEXAS TRIANGLE : Austin and Waco are Following a Familiar Pattern.

If you were active in Central Texas between 2010–2020, you certainly watched the Austin–San Antonio corridor evolve from a slow stretch of sparsely developed farmland into a near continuous conurbation connecting both cities through New Braunfels, San Marcus, Kyle and Buda. Far from an isolated phenomenon, the corridor’s growth was part of a broader development dubbed The Texas Triangle: a modern megaregion connecting Dallas/DFW to Houston, San Antonio, and Austin. To date, it’s one if not THE fastest growing areas in the Country.

Economic Clout: The region produces over $2 trillion in annual economic output and is home to 50+ Fortune 500 companies(Kinder Institute for Urban Research, Rice University)
Population Growth: 2020 census showed population of 29 Million, and estimated up to 31 Million by 2025.
Economic Diversity: A balanced mix of energy, technology, defense, and logistics, supported by a relatively young workforce

Since 2020, we’ve seen a similar pattern developing just north of the Capitol City, leading to Waco.

Waco: From Stopover to Destination

Waco’s evolution is the primary driver of this new corridor’s development.

What was once a tertiary market and college town is now becoming a destination in its own right.

Industrial Growth Is Leading the Charge

Waco’s job base is expanding rapidly through a mix of heavy and advanced manufacturing. To name just a few of these recent and forthcoming developments:

*Keep up with all economic development in and around Waco via the Waco Chamber of Commerce newsfeed.

What’s especially noteworthy here is that these investments aren’t just in traditional manufacturing. They are high tech facilities involved in advanced and future-focused production, positioning Waco as a manufacturing destination for decades to come.

Industrial Leads, Residential Follows:

Waco’s industrial growth has already translated into residential follow-up, and the added pressure on existing housing stock is already affecting smaller markets in the corridor. A KXXV market study showed that Waco had a housing deficit of over 9,000 units as of Q4 2025, and it’s clear that the surrounding markets will have to help absorb the spillover.

In Waco, residential permits were up 30% in 2025 with over 900 new permits issued. Temple’s population surpassed 100,000 in 2025, up roughly 20K since 2020. In Belton, the population grew a exponential 17% between 2020 and 2025. Countless residential developments are underway across the region, with the largest being the River Farm Development, encompassing 478 acres and over 1,500 homes.

North of Austin, DMB’s Solana Ranch development is moving, “full speed ahead” to build what many have described as an entirely new town. Located in Jarrell Texas and straddling Bell and Williamson counties, the development will boast over 14,000 homes and mixed use spaces over 7,000 acres. Rumours abound regarding Disney’s potential involvement in the project, though no official announcement has been made.

Civic Repositioning: A Long-Term Bet on Identity

*Overview Map of Waco Downtown Redevelopment District*

It’s clear that Waco is perfectly positioned within the Texas Triangle to benefit from the inevitable growth of the region. To take full advantage of the coming development, the City itself has a plan to rebrand Waco as a destination city.

Ground will soon break on a 100+ acre downtown redevelopment project—slated to begin in late 2026. Unfolding over multiple phases, the project includes:

A new convention center
A new baseball stadium
A new performing arts center
Mixed-use residential and retail districts

This project will redefine Waco’s downtown district as an urban core fit for national and international tourism, conference, business, and entertainment.

Infrastructure Is Catching Up

I-35 expansion, our least favorite and most necessary thoroughfare, is expanding both north and south of Austin. Simultaneously, the My35 Waco South project is widening a stretch of I35 from S Loop 340 to 12th Street in Waco. Construction is slated to be complete in 2029, increasing capacity up to 8 lanes of traffic.

It’s better late than never, as the additional capacity is desperately needed.

Additionally, the Fly Waco initiative was completed in 2023 — a $10M renovation of the Waco Regional Airport (ACT) aimed at improving traveler experience in response to increased demand in the market.

Why This Matters for Brokers

Despite the clear signs described above, we’re still early. As of March ‘25, home prices in Temple were still 43% lower than the national average, despite the town’s astronomical population growth. The investments aren’t stopping, which means more development is on the way. Using the Austin to San Antonio corridor as a benchmark, we know that the “in-between” markets benefit alongside core urban growth, sometimes even moreso given gaps in information and pricing in smaller markets.

We’re seeing the same pattern evolve North of Austin - industrial is leading, residential is following, and retail will fill in the gaps once houses are occupied.

Featured Opportunity

As this corridor continues to mature, well-located assets positioned between Austin and Waco will benefit directly from both population growth and logistics demand.

FOR LEASE: 4272 FM 2484 - ON TARGET Business Park
On Target Flex Space Park - Developed and Owned By BECK-REIT

Modern, owner-operated flex business park located at 4272 FM 2484 in Salado, TX (Salado ETJ)—approximately 1.2 miles west of I-35 in the Austin / Waco growth corridor. Designed for today’s service, showroom, and light-industrial users, the project delivers a rare combination of storefront presence + functional warehouse capability, all within a secure fenced and gated site with clean circulation and easy parking.

This is retail-flex (not traditional retail)—ideal for businesses that want a polished customer experience up front while maintaining operational space in the back. Strategically positioned directly across from the new $263M Salado ISD high school and athletic/performance complex, this location offers exceptional daily visibility and access to a high-energy, family-driven market.

BUILDING 1 – SUITE B
• 2,500 SF Office / Warehouse
• Available February 2026
• $4200 Gross lease
• Finished office up front, high-bay warehouse in back
• 24’ warehouse ceilings + 14’ roll-up door
• Storefront door + windows

OFFICE / RETAIL FLEX

BUILDING 2 – SUITES A–D
• 1,500 SF each
• Delivering june / Q2 2026
• $18 - $20/SF + NNN
• Storefront entry, full HVAC, restroom + kitchenette
• Roll-up doors in all suites except Suite A
• Higher clear heights (14’–18’) in Suites C & D

NNN Estimate = $7.00

Final Thought

Five years from now, this stretch of I-35 won’t feel like a gap—it will feel like a system.

The question isn’t whether this corridor develops.

It’s how you’re positioned while it does.

Sources available upon request. Data includes reporting from Kinder Institute for Urban Research (Rice University), TxDOT, and regional economic development publications.

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