Temple, TX: Healthcare Anchored Lending in the I 35 Corridor

Temple is anchored by Baylor Scott & White Medical Center, the largest healthcare employer in Central Texas, and benefits from proximity to Fort Cavazos (formerly Fort Hood), one of the largest military installations in the country. Positioned on I 35 between Austin and Waco, Temple is seeing spillover growth from both metros as affordability pushes residents and businesses northward. Commercial development along I 35 and the Highway 363 corridor has accelerated, creating lending demand for retail, multifamily, and medical office projects.

Baylor Scott & White employs thousands in Temple and drives demand for medical office, housing, and support services. Fort Cavazos generates significant economic activity through military personnel and their families. The I 35 corridor through Temple is experiencing increased commercial development as the Austin metro expands northward. Temple's cost of living advantage over Austin and Waco attracts both residents and businesses looking for better economics.

Temple is one of the most underlent markets in Central Texas relative to its economic fundamentals. Baylor Scott & White's flagship campus creates an institutional anchor that most cities Temple's size simply don't have. The I 35 expansion project will improve connectivity between Temple and the Austin metro, further accelerating the northward migration of residents and businesses seeking affordability. Cap rates in Temple run 200+ basis points above Austin for comparable property types, creating a compelling yield story for investors willing to look beyond the traditional Austin San Antonio corridor. Fort Cavazos adds a countercyclical defense spending component that provides economic resilience during downturns.