Rio Grande Valley – The Future of a Small & Mighty Global Metroplex

McAllen and The Rio Grande Valley have seen substantial changes over the last couple of decades. Into the 2020’s, a confluence of important factors that are in motion continue this trend. Hidalgo County officials predict the county’s population will hit the one million mark by 2020. As a matter of fact, the Rio Grande Valley continues to be one of the fastest growing regions in America. The combined McAllen-Edinburg-Mission metro area became the 5th largest metropolitan area in Texas during 2015.

Igor Ryabov, a sociology professor at The University of Texas Rio Grande Valley, observed the region “grows approximately 20 percent per decade, which is an impressive number for the United States.”

Fifty years ago, the Rio Grande Valley of South Texas was a secluded, rural, agriculture-based economy defined by modest growth. In the 21st century, the area is transforming into a major international trade area by developing outstanding commercial, retail, office, industrial, medical, retirement and educational facilities.

To complement and fuel this stunning growth, the promotion of international and retail trade, tourism and manufacturing is among the most successful ventures along the U.S.-Mexico Border. It’s occurring in the Rio Grande Valley, the geographic center of the region most recently termed “The Rioplex” – which includes Cameron, Hidalgo, Starr and Willacy counties and the Northern Mexico border cities between Matamoros and Ciudad Mier.

The foremost cities of McAllen, Brownsville and Harlingen combine to form the northern portion of the Rioplex. As a matter of fact, the McAllen-Edinburg-Mission Metropolitan Triangle is ranked the 4th fastest growing area in the United States. The southern half of the Rioplex includes the Mexico border cites of Matamoros, Rio Bravo and Reynosa, which contribute a substantial 3.0 million to the region’s population.

This brings the total population of this diverse international metropolitan area to 3.9 million or more. To put it in sharp perspective, the entire population of the Rioplex is larger than 25 states combined.

Here are two important demographic criteria defining the region.  Latino Hispanics represent close to 87% of the Rio Grande Valley population; and Rio Grande Valley residents under age of 35 years make up between 50% and 60% of the population.

Let’s take a full-swing back around and revisit McAllen, Texas.

McAllen is indeed the “Jewel of the Rio Grande Valley.”  Of course, the other communities in the Valley communities shine, but it’s obvious McAllen has more than lived up to its own bright economic potential.

The McAllen, Mission, Edinburg and Reynosa Metro area comprise a vibrant community with a combined population of 1.7 million. During the past two decades, this unique area has made impressive advances, with extraordinary growth in population, industrial expansion and real estate development.

Here are some facts and real-time numbers on McAllen and the surrounding Metro Area. As no surprise, the McAllen Metro Area is rated “One of the Fastest Growing Metros” in the State of Texas!

In addition…

  • Forbes listed McAllen as one of the top ten best cities for recession recovery in a 2009 article.
  • The McAllen Metro Area ranked 7th overall out of the 200 best performing U.S. metropolitan areas in the nation, and 1st in high technology sector growth in 2008
  • McAllen has the 3rd Lowest Cost of Living in the USA
  • CNN Money recognized McAllen among its Best Places to Launch a Small Business in 2009.
  • McAllen was ranked 16th among Mid-Size Cities for Small Business Growth.
  • McAllen’s total population is 15th among Texas cities, yet it ranked 12th in overall Retail Sales, and 3rd in the State in total Retail Sales per household and per capita.

(Source: U.S. Census Bureau 2008, Milken Best Performing Cities Index 2008)

McAllen is an outstanding and progressive environment for retail sales. It hosts 40 of America’s top 100 retailers. More than 80 of Fortune 500′s global manufacturers have operations in McAllen/Reynosa area. This means the market for commercial real estate
has plenty of opportunities to grow and expand.

McAllen is recognized as the retail center of South Texas and Northern Mexico, drawing from a responsive consumer base of over 10 million people within a 200-mile radius. In the immediate U.S. Mexico metropolitan area, McAllen retailers reach and serve an active market population of 1.8 million.

Economic forecasts have the McAllen-Edinburg-Mission metro area adding 31,300 job over the next five years and estimated production expanding at a 3.85 percent annual rate.

Here are some recent Commercial Real Estate development highlights in McAllen and the Rio Grande Valley…

  • Texas A&M College Station in McAllen opened Fall 2017. Students who attend and graduate from the new university will receive a diploma from a top Texas University. The school will offer targeted programs in engineering, technology, biomedical sciences, agriculture, and lab sciences.
  • The impressive La Plaza Mall will continue to expand with an additional fifty stores, four more anchor stores, and six restaurants adding an additional 245,000-square-feet to the commercial retail site.
  • The Bert Ogden Arena in Edinburg opened in 2018 and is the largest arena in the Rio Grande Valley. With 8,500 seats, the arena will be a premier venue for sports, entertainment, and music shows. The arena will also be home to the Rio Grande Valley Vipers, and the local NBA D-League team.
  • HEB Park, a 9,700 seat, state-of-the-art soccer stadium and outdoor venue, opened in 2017. The RGV Toros will call the stadium home, but it will also serve as an outdoor concerts venue, and site for local soccer leagues.
  • SpaceX, in McGregor, Texas, will continue to magnify its infrastructure and draw professional talent internationally. The site has also provided engineering jobs and more opportunities for local students attending the region’s colleges and universities.

Looking at the fundamentals, it is evident the Rio Grande Valley has blossomed into one of the most promising local economies and commercial real estate markets in the United States. It also shows vast potential for growth into the 2020’s and beyond.