H-E-B plans another $40 million upgrade at its San Antonio-area distribution campus

H-E-B has registered plans for a $40 million project at its Foster Road distribution campus, adding a truck return center, deep-storage space and offices to the San Antonio-area site.

The proposed 106,500-square-foot facility would be built at 2045 South Foster Road. A Texas Department of Licensing and Regulation filing lists construction as tentatively scheduled to begin Jan. 4, 2027, and finish Jan. 31, 2028. The project is privately funded, and the filing describes the work as new construction.

The building would include two-story office and administrative space, a shipping and receiving office, and maintenance space alongside the truck return and storage functions. The filing identifies the project as part of H-E-B’s existing Foster Road campus.

The project adds another piece to H-E-B’s broader supply-chain expansion plans in San Antonio. In May, the company announced a planned $700 million investment in supply-chain operations, with preliminary plans for a bakery, refrigerated warehouse, transportation building and other facilities at the Foster Road campus. H-E-B said that larger initiative is expected to create 720 jobs by 2028 and more than 1,200 full-time positions over the following decade.

H-E-B has said it has invested more than $445 million at the 870-acre campus, where it already operates a warehouse and manufacturing plant totaling more than 2 million square feet. The company reported that nearly 1,400 employees work at the site. If the broader expansion proceeds as planned, H-E-B projects the campus workforce could grow to more than 2,600.

What it could mean for local businesses

For businesses across the region, the Foster Road project is a reminder that grocery growth reaches well beyond store construction. More distribution capacity can increase demand for trucking, fleet maintenance, construction trades, building materials, equipment, logistics and business services.

The project filing does not provide a job estimate for this individual facility. Its economic impact will depend on how the center is built and operated, along with the progress of H-E-B’s larger campus plans. Still, the truck return and maintenance functions point to the practical infrastructure behind grocery supply: goods must move, vehicles must be serviced and storage must keep pace with distribution needs.

The proposed upgrade also offers a local view of how a major retailer’s investment can create opportunities across multiple industries. For contractors and suppliers, the key development to watch will be how the Foster Road projects advance from preliminary plans to construction and hiring.