A Texas developer is highlighting how dramatic differences in local regulatory environments are creating unexpected real estate opportunities along the I-35 corridor. Alec McElhinny, founder and CEO of Land Play, says savvy developers are increasingly looking beyond city limits to find faster paths to market.
“On that 35 corridor, there’s little pockets that aren’t in city limits that are super easy to build in,” McElhinny says, pointing to Como County as an example where development can move significantly faster than in neighboring jurisdictions.
According to McElhinny, the contrast in approval timelines between jurisdictions can be stark. While projects within New Braunfels city limits might take up to 18 months for site plan approval, areas just outside city jurisdiction can move much more quickly.
This regulatory arbitrage is already attracting major players. “Right across the street from my flex space project, which is in Como County, they’re putting a Costco,” McElhinny notes. “There’s Academy, there’s thousands of homes going up. There’s a middle school that was just built.”
McElhinny argues that lengthy approval processes in cities like Austin and New Braunfels have broader market implications. “If you want to build a site, and it takes three years to get a government approval to just start the construction piece, there’s no way to respond to the market,” he says.
This regulatory burden, according to McElhinny, directly impacts housing affordability and market responsiveness. “When you have these really long site plan approval processes, it just increases rents for everybody. Makes it just makes it harder on everybody.”
The regulatory environment is reshaping development patterns along the I-35 corridor. McElhinny points to major projects like the Mayfair development in Como County, which he says involves between 1,000 and 2,000 acres of land.
“I think New Braunfels and Como County… it’s so easy to build in,” McElhinny says, predicting increased institutional activity in these areas. He notes that the Mayfair project represents just the beginning of larger developments coming to the market.
Land Play’s approach to regulatory arbitrage represents one emerging strategy for navigating Texas’s complex development landscape. As cities continue to struggle with approval timelines, development-friendly jurisdictions may see increasing activity from both local and institutional developers seeking faster paths to market.
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