The total construction value of all projects completed in McKinney in 2023 was nearly $1.5 billion, according to a presentation at a Feb. 27 council meeting.

The value is the highest in city history and beats the previous record high value, which was set in 2022, Executive Director of Development Services Michael Quint said at the meeting.

The gist

The total new construction value in McKinney reached $1.47 billion in 2023, according to the presentation.
The values include only projects within city limits and do not include anything constructed in the city’s extraterritorial jurisdiction or municipal utility districts.

Of that total construction value, about $485 million was derived from nonresidential construction. This value is about $200 million less than the nonresidential value constructed in 2022, Quint said, noting that a single $216 million Raytheon expansion project inflated the nonresidential construction values measured in that year.

“If you take the $216 million dollars off the top, this year exceeds last year,” Quint said of the difference in construction values between 2022 and 2023.

The city also issued 129 nonresidential building permits in 2023, which is the highest since 2001, he said. Nonresidential projects of 2023 highlighted in the presentation include:Quint also noted the 380 Commons development at the intersection of Hardin boulevard and US 380 as a notable nonresidential project due its success in attracting a daytime crowd to the businesses there.

“It’s a shining example of what's possible if you invest in the city of McKinney,” Quint said of the 380 Commons development.
Nonresidential development spanned multiple industries and was dispersed across the city. (Courtesy city of McKinney)

Diving deeper

Single-family residential projects accounted for over $495 million of the total construction value in 2023, with over 1,500 new permits issued. Multifamily residential construction accounted for the remaining roughly $491 million and represents the value of over 3,100 new multifamily dwelling units, according to the presentation.

Some of the biggest residential projects of 2023 include Painted Tree, a roughly 1,000-acre master-planned community in north McKinney, as well as Highland Lakes and Aster Park, according to the presentation.
Residential development was concentrated north in US 380 in 2023. (Courtesy city of McKinney)

Also of note

Following statewide reform of how cities can annex land from extraterritorial jurisdiction areas in recent years, the city has faced challenges in planning infrastructure development in McKinney's extraterritorial jurisdiction, Quint said.

He cited a number of recent legislative actions as contributors to the declining strength of “local control,” including SB 6 in 2017, HB 2439 in 2019 and SB 929 in 2023. Quint also said the city has seen the effects of SB 2038, a bill that allows property owners to petition to have their property removed from a city’s extraterritorial jurisdiction. Since the bill went into effect in late 2023, requests to be removed from the extraterritorial jurisdiction have been received for 16 properties totaling nearly 700 acres.

“We’ve had over 1 square mile [of land] petition to get out of our [extraterritorial jurisdiction],” Quint said. “That is a ... significant impact to our master-planning efforts [and] to our infrastructure investments.”

The city has utilized development partnerships to incentivize developers to annex their projects in the extraterritorial jurisdiction area into the city’s limits, Quint said, including a recent 127-acre annexation.

One more thing

City officials have developed an interactive development data map that showcases the city’s annual development report, Quint said. The interactive report can be accessed here.