Corridor growth accelerates between Austin and San Antonio
San Marcos is quickly emerging as one of Central Texas’ most active commercial corridors, as national chains, Texas-based institutions and expanding local brands cluster along Interstate 35. Fueled by commuter traffic between Austin and San Antonio and a growing Texas State University population, once-quiet frontage roads are now giving way to large-scale redevelopment projects.
From grocery anchors and travel centers to chicken chains, beauty retailers and homegrown bakeries, the I-35 strip is transforming into a dense retail spine designed to capture commuters, students and regional shoppers.
H-E-B anchors east-side expansion
A new 114,000-square-foot H-E-B is under construction at I-35 and McCarty Lane, marking a major retail investment on the east side of the highway. Construction began last November, and crews have already erected structural steel and begun interior build-out.
When the store opens in late 2026, it will offer full-service grocery features including a pharmacy drive-thru, curbside pickup, home delivery, in-store bakery and meat market. It will also introduce San Marcos’ first True Texas BBQ restaurant, along with a fuel station, car wash and H-E-B Fresh Bites convenience store.
Chicken chains intensify competition
The fast-casual “chicken wars” along I-35 have intensified with the arrival of Slim Chickens, which recently opened near the Tanger Outlets corridor. The Arkansas-based brand joins established players such as Raising Cane’s and Layne’s Chicken Fingers in targeting commuter and student traffic.
The menu centers on hand-breaded tenders, wings and sandwiches, supported by Southern-style sides and dessert offerings aimed at high-volume turnover. Its location directly off I-35 positions it strategically within one of the city’s busiest commercial zones.
Outlet center expands luxury and beauty mix
Retail growth continues at San Marcos Premium Outlets, where several new tenants are opening or preparing to launch in 2026. Luxury leather brand Cuadra has debuted its first U.S. outlet location at the center.
Birkenstock is set to open its first Texas outlet, expanding access to its orthopedic footwear line. Meanwhile, Sephora will arrive in June 2026, strengthening the outlets’ beauty and lifestyle portfolio alongside major fashion brands.
Local brands scale alongside nationals
Homegrown bakery Dos Gatos Kolache is planning a second San Marcos location along the I-35 frontage road. The 1,694-square-foot build-out will include a drive-thru format designed to capture commuter demand, marking a shift from its original campus-focused model.
The expansion places the brand among high-traffic neighbors such as Texas Roadhouse and Whataburger, reinforcing the corridor’s clustering effect.
Buc-ee’s megasite nears completion
Construction is advancing on a 74,000-square-foot Buc-ee’s at I-35 and Yarrington Road. Exterior brickwork and roadway improvements are underway, with an opening targeted for July 2026.
The travel center will bring high-capacity fueling, large-format retail and food service offerings to one of the busiest stretches of highway in Central Texas, further cementing San Marcos as a regional stopover and retail hub.
