Walmart is advancing plans for a major new distribution facility in Cibolo, described as a suburb of San Antonio. The retailer is planning a $400 million project that will add a 744,000-square-foot distribution center to its logistics network. According to the company, construction on the facility could begin early next year, with completion targeted for the third quarter of 2029.
The project is being designed by ESI Group and is slated for a 126-acre site at 3641 S. Santa Clara Road. The property was formerly home to the San Antonio Raceway and sits along Interstate 10 in Guadalupe County. Once developed, the new facility will expand Walmart’s regional distribution capabilities in proximity to an established transportation corridor.
The city of Cibolo has approved a package of public incentives to support the development. As reported by Commercial Search, the city granted a 75 percent property tax abatement over a 10-year period. In addition, the project will receive a 50 percent rebate of the maintenance and operations portion of the property tax bill for five years, along with a performance-based sales tax component. Taken together, these incentives are estimated to provide roughly $32.5 million in tax breaks.
Local officials also established a tax increment reinvestment zone covering the area around the project site. This structure is designed to reinvest a portion of future increases in property tax revenue generated within the zone back into infrastructure and other improvements, further supporting the area surrounding the distribution center.
The proposed facility will enter a market with relatively limited available space. The industrial submarket that includes the project site recorded an industrial vacancy rate of 5 percent as of September, indicating a tight supply environment by historical standards. The addition of a 744,000-square-foot distribution center represents a meaningful increase in inventory for this part of Guadalupe County.
Walmart already maintains a significant retail footprint in the broader region. The company operates 38 stores in the San Antonio metro area, underscoring the importance of the market within its statewide network. At the state level, Walmart operates 22 supply chain facilities across Texas, and the Cibolo project will add another large-scale logistics asset to that portfolio once it is completed.
