Editor's note: This story has been updated to indicate that the future St. David's HealthCare hospital in Kyle will not be a Level 2 trauma center and will initially span three stories, not seven, as previously reported. The hospital will have the opportunity to expand to seven stories with growth.

A variety of new developments are making headway in Kyle and San Marcos, including big names like Tesla and Sprouts.

1. Hot Pursuit

A mixed-use development known as “Hot Pursuit” is moving forward following Kyle City Council’s approval of the project Aug. 15. Developed by Houston-based commercial real estate agency NewQuest Properties, the proposed development includes multifamily housing with a large retail center for office spaces and dining.

A development agreement is in the works to be presented to the council, and a public hearing for the creation of a tax increment reinvestment zone for the project will be held during the Sept. 19 City Council meeting.
  • Location: I-35 and BeBee Road
  • Timeline: TBD
  • Size: 100 acres
2. Sprouts

Sprouts Farmers Market, an Arizona-based grocery chain that offers natural, organic and gluten-free food, may be heading to Kyle. Mayor Travis Mitchell said Sprouts has been one of the “most requested grocers” in conversations with the community, and City Council agenda documents state that the grocer would serve as a “catalyst” for the Brick and Mortar district.

City staff is working with the developer, GBT Realty Corporation, to bring back a development agreement for the Sept. 19 City Council meeting.
  • Location: FM 1626 and Kohlers Crossing
  • Timeline: TBD
  • Size: 23,000 square feet
3. St. David's HealthCare

St. David’s HealthCare is set to open a new location in Kyle. The full service acute care hospital will span three stories and include a 24-hour emergency care department, inpatient and outpatient surgery ward, and maternity and newborn services. The hospital will also connect to the future Vybe Trail system and other retail centers.

A location for the hospital has been selected, and a letter of intent has been signed to purchase the land, according to a statement from hospital representatives. Scoping of the project will begin next.
  • Location: FM 1626 and Marketplace Avenue
  • Timeline: Estimated to open late 2024
  • Size: 160,000 square feet
4. Tesla

Tesla is slated to open a facility at Kyle 35 Logistics Park, taking over three of the five buildings in the development.

According to Kyle Communications Director Rachel Sonnier, the shells of the building have been completed, and the finish-out permits have been submitted, but a completion date or other details on the facility’s operations have not been made available.
  • Location: 24801 I-35
  • Timeline: TBD
  • Size: Nearly 1 million square feet
5. Whisper 35

Whisper 35 is a five-building industrial park being built in San Marcos. The project is being developed in two phases, and two of the five buildings were completed during the first phase of the project in 2021.

Developer Greystar Real Estate Partners has broken ground on Phase 2 of the project, and the remaining three buildings are now under construction. Manifest Commerce—an eco-friendly logistics company offering carbon-neutral services to D2C businesses—has leased the second building in nearly 90,000 square feet of space, bringing Phase 1 to 100% occupancy.
  • Location: 912 Flustern Road
  • Timeline: early 2024
  • Size: 494,926 square feet (all five buildings)