Construction crews broke ground on a third phase at Dacy Business Park on Oct. 1, adding four new buildings and 43,050 square feet to the commercial development at 3300 Dacy Lane in Kyle. The expansion comes after the park's first two phases sold out and leased entirely, leaving no vacancy in those phases for the mix of electricians, HVAC and plumbing contractors, distributors, CNC machining shops, specialty automotive businesses and custom embroidery shops that have already moved in.
The new phase includes buildings 1, 4, 8 and 12, according to Community Impact. Building 1 is being positioned as the park's flagship structure, built to catch the eye of businesses that want visibility from Dacy Lane traffic. The site sits directly across from Chapa Middle School, placing the growing commercial footprint right alongside one of the area's school campuses.
Available suites in the new phase will combine office and warehouse space and can be purchased outright, leased or arranged as lease-to-own, the outlet reports. The developer's own pricing page lists leases starting at $1,998 a month, including NNN costs, or purchase options from the mid-$300,000s, per Dacy Business Park's listings. That same page notes the third phase is expected to be available in the first quarter of 2027, while the news report frames the broader timeline as early 2027 completion.
A Growing Industrial Footprint Along Dacy Lane
City officials expect the expansion to bring new commercial properties to Kyle, grow the local tax base and open up space for additional businesses, the report notes. Those are the kinds of gains local leaders tend to tout when industrial parks fill up fast — and Dacy's first two phases did exactly that, going fully sold and leased before phase three ever broke ground.
The park's own materials describe the planned build-out. The developer's website states the project is planned across four phases with 13 buildings totaling 137,550 square feet. A separate announcement on the same site describes 13 buildings holding 91 warehouse condominium suites for a total of 132,500 square feet.
Traffic Pressure on a Busy Corridor
The expansion is landing on a stretch of roadway that has already drawn scrutiny from Kyle officials. Dacy Lane carries 10,815 vehicles a day, according to the 2025 TPP Statewide Traffic Count cited in the Community Impact report. That volume runs through a corridor where the nearby intersection of Dacy Lane and Downing Way saw 21 crashes over five years, including six in 2024, based on a city presentation covered by Community Impact's transportation coverage from April 2025.
At that time, the city said it planned to relocate a temporary traffic signal to the Dacy Lane and Downing Way intersection by May 2025, and officials indicated the broader Dacy Lane corridor would be folded into Kyle's Transportation Master Plan update to guide longer-term safety and mobility work.
Part of a Wider Build-Out in Hays County
Dacy Business Park isn't the only industrial project reshaping the area. Kyle Technology Park recently completed its own first phase as a new flex-industrial development, according to a separate Community Impact report, and the Texas Real Estate Research Center noted that a separate $80 million business park broke ground in Kyle in mid-2025. Just down the road, a major business park in Buda announced its availability in January, with similar ambitions of expanding industry in the city, per Community Impact's coverage of that project.
Those parallel developments suggest Hays County's appetite for flex-industrial and warehouse space hasn't slowed. For Dacy Business Park, the question now is simply whether phase three fills up as fast as the first two did — and whether the Dacy Lane corridor's traffic planning keeps pace with the businesses moving in.
