City of McAllen Construction Shows $330 Million-Plus Growth

Written by mcallenretail on . Posted in Media Releases

Increase is $155 million over previous year 

(McAllen, TX)   The City of McAllen is growing and prospering, as evidenced by the increase in construction valuation of $333,114,402 for the current fiscal year, an increase of $155,458,427 over last year at the same time.  This is an increase of 47% in construction value for various projects including residences, such as various subdivisions, homes and apartments; commercial, including new hotels and restaurants; and public buildings, like churches and schools.

“The double digit growth in the construction valuation taking place in our community points to a strong and prosperous local economy that is continuing to be on the rise,” said City of McAllen City Manager Roel “Roy” Rodriguez.  “The millions of dollars invested in McAllen not only by local developers, but also by companies from around the country and around the world, demonstrates that there is money to be made in our city and that McAllen is THE place to live.”

Approximately 400 new homes are being constructed, since the start of the fiscal year, valued at just over $59 million, while over 300 homes are either undergoing additions or remodeling, at a value of over $4.5 million.  Duplexes, triplexes, fourplexes, townhomes and condominiums construction are adding over $4.2 million to the construction value and 16 new apartment complexes around the city that will each feature club houses, pools, walking trails, and recreation areas, among other amenities and are adding almost $28 million in construction value.

Since a year ago today, new commercial development has skyrocketed, with new buildings, offices, hotels and restaurants breaking ground or expanding, at a value of almost $85 million.  Projects like the new medical offices on Dove Avenue, will help to better accommodate the growing need for professional office space.

Visitors to McAllen for shop, work or play will soon be able to stay in any number of new hotels under construction, including the new Homes 2 Suites Hotel near the McAllen Convention Center, the Four Points Sheraton on Expressway 83 and the Holiday Inn Express on South 6th Street.  

The eagerly anticipated Dave & Buster’s is breaking ground in the just completed Shops at 29 shopping center, which is situated next to the McAllen Convention Center, a new venue offering 200,000 square feet of shopping, dining and entertainment to McAllen and its surrounding communities.  The 30,000 square foot multi-million dollar building construction project, will offer the very best in food, drink and entertainment in an upscale and modern environment.

In fact, Burlington Coat Factory also located in the Shops at 29, only broke ground this calendar year and already opened its doors last weekend, with better than projected sales revenue. Joining Burlington in the shopping center will be Ross Dress for Less, which is scheduled to break ground in October.  Other projects undergoing construction include an additional six new restaurants that will also open their doors in the coming year.

Recently, McAllen was highlighted in an article by Shopping Centers Today, an online retail industry publication, which highlighted the strength of retail development along the Texas/Mexico border with McAllen leading the surge in retail sales and development along the border.   The article mentioned the strength of the Mexican shoppers to the city’s retail strength.  McAllen residents and visitors to the city are eagerly anticipating the opening of the addition to La Plaza Mall which will include 50 stores, six restaurants and two parking decks. The new expansion to the mall alone contributes just over $44 million to the construction value.

A new $9 million warehouse also began construction this year in South McAllen in the industrial park, to further the city’s role in international trade through one of its commercial bridges.

New construction is not limited to homes and businesses, as buildings for the spirit and the mind also broke ground in McAllen in 2016.  While church additions and remodels have added almost $800,000 in construction value to the city, educational institutions have contributed over $40 million, including the new $10.5 million IDEA School and the South Texas College School of Nursing that just recently broke ground for a new training hospital training facility for students in South McAllen. Additionally 36 schools, Nikki Rowe High School and various McAllen Independent School District locations that are undergoing additions or remodeling.

All amounts and values are through August 2016, with one more month left in the 2015-2016 Fiscal Year.

Construction valuation is the cost of constructing the new building, including materials, labor, and other costs.

For the full construction valuation report, head to the City of McAllen website at


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