The former Rackspace mega-campus in Windcrest is edging closer to its next life, with the first phase of rehab nearly in the books. The 1.2 million-square-foot complex on the Walzem Road corridor is being flipped from a single-tenant headquarters into a multi-tenant industrial and office campus, and crews are steadily working through both exterior and interior systems.
Industrial Commercial Properties LLC, the Cleveland-based developer that closed on the site in 2024, bought the campus to reposition it for light industrial, manufacturing, office and retail tenants, according to Industrial Commercial Properties. The company has outlined plans for an expedited lease-up and a slate of public-private partnerships aimed at driving jobs and new tax revenue for Windcrest and northeast Bexar County.
Project leaders told the San Antonio Business Journal that the development has passed a construction milestone and that the first phase is nearing completion, signaling that interior buildouts and infrastructure upgrades are moving into a new gear. According to that report, crews have already closed in portions of the building and started work in future tenant spaces.
What ICP bought and what’s been pledged
The complex, spread over roughly 66 acres, was once Windsor Park Mall before Rackspace turned it into its high-profile headquarters. Industrial Commercial Properties acquired the property to convert it back to multi-tenant use. The firm has framed the redevelopment as a roughly $40 million to $50 million play, and local filings and reporting indicate it paid about $21.5 million for the site, with around $18.5 million set aside for initial upgrades, according to Industrial Commercial Properties and MySA.
Local leaders push Walzem Road revival
City leaders in Windcrest are treating the project as a lynchpin for reviving the Walzem Road corridor. The city’s economic development arm has been touting the business park as a future engine for jobs and municipal revenue on the northeast side. “The new Windcrest International Business Park is the catalyst for growth in northeast Bexar County,” the Windcrest Economic Development Corporation writes on its website, which highlights projections tied to the redevelopment.
Market context
The Windcrest project fits into a broader trend of turning oversized corporate campuses and dead-or-dying mall footprints into multi-tenant industrial and office parks. In San Antonio, demand remains strong for logistics, light manufacturing and flexible workspace, which makes large, well-located sites like this particularly attractive. Coverage of the acquisition and repositioning has pointed to Industrial Commercial Properties’ track record in repurposing large-format properties, and to the campus’s strategic size and location for a mix of tenant types, according to REBusinessOnline.
Timeline and what’s next
With the first phase now described as nearing completion by project leaders, the next steps involve tenant-specific buildouts and exterior work to get suites ready for lease, the San Antonio Business Journal reports. Earlier filings and coverage indicated that renovations are expected to continue through 2028, as the team turns attention to parking, façades and fully bringing utilities online, per MySA.
For Windcrest, converting the Rackspace campus into a multi-tenant park is intended to pull daytime workers back to a corridor that has struggled since corporate downsizing, and local officials say they are already lining up potential users. The property at 1 Fanatical Place is being marketed to light industrial, manufacturing and office tenants, and city and county leaders say they expect the project to translate into new jobs and refreshed storefronts along Walzem Road, according to the Windcrest Economic Development Corporation.
