Walmart Plans $400M, 744,433-SF Distribution Center in Cibolo, Texas

• Walmart is planning a $400 million distribution center called Project Theo on 126 acres at 3641 S. Santa Clara Road in Cibolo, Texas, northeast of San Antonio.
• The project will include a 712,500-square-foot warehouse and 31,933-square-foot connected office, totaling 744,433 square feet.
• Construction is scheduled to begin in February 2027, with completion targeted for August 2029. The project is expected to create at least 425 full-time jobs.
• Cibolo approved an estimated $32.5 million incentive package, including a 10-year property tax abatement and additional tax rebates.

What Walmart Is Building in Cibolo

Walmart is expanding its Texas supply-chain footprint with plans for a $400 million distribution center in Cibolo, marking the retailer's first distribution facility in the San Antonio metropolitan area. Known as Project Theo, the development will occupy 126 acres at 3641 S. Santa Clara Road, the former San Antonio Raceway property along Interstate 10 in Guadalupe County. A filing with the Texas Department of Licensing and Regulation lists Walmart Stores East LP as the owner and identifies ESI Group USA as the design firm. The plans call for a 712,500-square-foot distribution center connected to a 31,933-square-foot office building. Construction is scheduled to start February 1, 2027, with completion expected August 1, 2029. The state filing lists an estimated project cost of $400 million.

What Cibolo Offered to Attract the Investment

The project received a substantial local incentive package. Cibolo approved a 75% property tax abatement for 10 years, a 50% rebate of the city's maintenance and operations property tax for five years, and a performance-based sales tax incentive. The combined incentives are valued at approximately $32.5 million. The city also established a tax increment reinvestment zone in the surrounding area to support future development. According to the San Antonio Express-News, the project is expected to generate at least 425 full-time jobs, with wages above the San Antonio metro area's median salary. City officials have also sought to have approximately 20 acres reserved for a future Walmart store. For the local market, the investment brings a major logistics employer and a large industrial property to a growing corridor between San Antonio and Austin.

What the Project Means for San Antonio Industrial Real Estate

Project Theo is entering a market where warehouse demand has strengthened while vacancy remains elevated across the broader metro. Cushman & Wakefield reported 10.6% overall industrial vacancy in San Antonio during Q3 2026, down 110 basis points from the prior quarter. The same report recorded 2.3 million square feet of quarterly leasing activity and 5.1 million square feet of year-to-date leasing, a 46.5% increase from the same period in 2025. The distinction between the broader market and individual submarkets matters. The South San Antonio submarket recorded vacancy of approximately 5% in CBRE's Q3 report, while vacancy varies considerably across the region. For industrial landlords and investors, Walmart's planned facility represents a significant owner-occupied investment rather than a speculative multi-tenant warehouse development. Its scale and long-term operating purpose could also reinforce the appeal of the Interstate 10 corridor for logistics and supplier-related businesses.

What Walmart's Texas Expansion Signals

Walmart operated 192 distribution facilities across the United States as of January 31, 2026, according to its SEC filing. The company has also been investing in supply-chain automation, fulfillment and delivery infrastructure. The Cibolo project complements Walmart's existing 1.3-million-square-foot distribution facility in New Braunfels, where the retailer has separately planned an $8 million renovation. For Cibolo, the development brings a major capital investment, hundreds of anticipated jobs and a new logistics anchor. For the industrial market, it reinforces the importance of strategic locations with highway access and the infrastructure needed to support large-scale distribution.