Tyler’s strategic real estate expansion sets stage for economic growth

Published 5:45 am Tuesday, December 17, 2024

At one time, companies eyeing Tyler and Smith County made a decision based on speed, risk and cost. But in 2020, Scott Martinez realized the region’s lack of prepared real estate was slowing progress — and costing opportunities.

Martinez launched the Strategic Sites Initiative in February 2021, hiring a team to identify properties that could support economic development projects. The initiative uncovered more than 50 potential sites, each suited for different types of development.

Since January 2023, the Tyler Economic Development Council has purchased over 680 acres of land. Acres were sold to Great Southern Wood Preserving (YellaWood) and to Smith County Emergency Services District 2 for a fire station, sparking interest in the new land.

“There’s a lot of activity, and really, all of this is driven by having real estate products. You know, no product, no project,” said Martinez, TEDC president and CEO. “The level of interest we’ve got in this real estate is constant because people want to be in Tyler, they want to be in Smith County, and now they actually have a place where I can put them.”

Business Park

TEDC announced the purchase of 281 acres on Dec. 2, with plans to develop the area into a new business park. The property, purchased from the Wisenbaker family, is located between Highway 271 and FM 14, just outside Tyler’s city limits. Roads created over time access both major roads.

The Wisenbaker family, owners of Southern Utilities, has been involved in local development for years. Martinez began working with a local attorney representing the family. After extensive discussions, an agreement was reached, and the sale was finalized.

What makes the site particularly attractive are its utilities. The city installed a 16-inch water line to John Soules Foods, and there’s a 138kV electric line running along the northern portion of the land, providing strong electricity access. Additionally, natural gas is readily available nearby.

“If you look at it through this lens, it makes it very attractive for economic development projects, because a lot of these are very intensive. As far as electricity needs, water needs, and then transportation,” Martinez said.

Industries looking at the area would include logistics, data centers and AI-related businesses. The rise of cloud-based storage and AI has driven significant investment in data centers across the country. Additionally, logistics continues to be a major focus.

Interstate Commerce Park

The Interstate Commerce Park, spanning 412 acres, was purchased in January 2023 to support regional economic growth. The park is expected to attract additional businesses, fostering job creation and boosting the local economy.

YellaWood, a prominent company, serves as the anchor tenant for this development. YellaWood purchased 150 acres and is currently developing 50 acres for what will be the world’s largest wood treatment facility, set to be operational within the next 90 days.

Smith County invested nearly $5 million in building County Road 3344, marking the first new county road constructed in the area since the 1950s. This infrastructure project was essential for supporting the park, enhancing accessibility and attracting businesses to the 412-acre development.

The Interstate Commerce Park is attracting a lot of manufacturing and logistics companies due to its location along I-20. There’s no other piece of real estate quite like it, Martinez said.

North Tyler Commerce Park

The Tyler BioPark was renamed to the North Tyler Commerce Park. The North Tyler Commerce Park, acquired in 1999, was initially envisioned as a biotechnology hub centered around a hospital complex. Officials aimed to attract biotechnology jobs to the site, but the project ultimately stalled, and no significant development has taken place there.

The park faced challenges from the outset due to its location on a poorly maintained county road, making it unattractive to biotechnology companies. Recognizing this limitation, officials rebranded the site about two years ago, acknowledging that its rural infrastructure was unsuitable for biotechnology development.

With the establishment of UT Tyler School of Medicine in midtown, it became clear that assets related to biotechnology and research would be better aligned with the midtown area, despite the presence of research facilities and wet labs at UT Tyler’s North Campus. Given this shift and the proximity of the North Tyler Commerce Park to I-20, officials decided to rebrand and repurpose the site to better suit its location and future development potential.

Amazon announced the purchase of 30 acres in the North Tyler Commerce Park on Nov. 11. The new 140,000-square-foot facility will be located on CR 334 (Center Church Road), with construction set to begin in the coming weeks.

Martinez said Tyler is highly attractive because it aligns well with the key factors of production — land, labor and capital. He pointed out the region’s low property taxes and Texas’ overall low cost of doing business.

With a growing labor market and strong training programs at Tyler ISD, Tyler Junior College and UT Tyler, the area is well-equipped to meet workforce needs. The region’s infrastructure, including access to I-20 for supply chain logistics, adds to its appeal.

With the addition of real estate assets, Tyler is now even more attractive to businesses, Martinez said.

“I want to attract companies here that make money, hire people, and pay those people,” Martinez said. “At the end of the day, I measure what we do by how many families in Smith County are going to work at these companies we’re attracting. You can’t attract a new company to Smith County and Tyler, unless you have a place to put them.”