Tesla adds 682K SF in Austin as Toyota commits $3.6B in Texas
Tesla expanded its Austin-area industrial footprint to roughly 3 million square feet as Toyota committed $3.6 billion to double its San Antonio plant.
Two of the country’s largest automakers deepened their Central Texas footprints on the same day. Tesla signed a 682,000-square-foot lease at 11801 Decker Lake Road in the Austin Hills Commerce Center, lifting its greater-Austin industrial presence to roughly three million square feet, with construction set to wrap in January.
Separately, Toyota committed $3.6 billion to a 2.5-million-square-foot addition that would roughly double its San Antonio plant and add about 2,000 jobs by 2030, part of a multi-year shift of some production from Mexico.
Why it matters. Industrial demand has cooled nationally, so back-to-back commitments of this scale mark Austin and the wider Texas corridor as an exception. Advanced-manufacturing tenants anchor long-term absorption and pull warehouse, supplier, and housing demand behind them.
The numbers. Toyota’s $3.6 billion is among the largest single manufacturing commitments in the region this cycle. Tesla’s lease alone is larger than most speculative developments now breaking ground.
What’s next. Both projects will test whether Central Texas can supply the power, water, and labor that plants at this scale require — the constraints that increasingly decide where large industrial users land.