Six construction projects to watch in the Rio Grande Valley in 2026

There are hundreds of construction projects underway across the Rio Grande Valley this year. But here are some notable projects the Rio Grande Valley Business Journal is keeping an eye on in 2026. 

Shops at Mercedes 

There are fewer than 20,000 residents in the mid-Valley city of Mercedes, which sits on the eastern edge of Hidalgo County along Interstate 2. But each day, there are more than 81,000 vehicles that drive through it — that’s one reason why there’s yet another retail development in the works. 

A decade after the Rio Grande Valley Premium Outlets opened in Mercedes as a retail destination, a new shopping plaza next door with popular anchor tenants is under construction. 

The Shops at Mercedes is a 28-acre development expected to cost $52 million. It is being built by San Antonio-based Merit Commercial Real Estate, led by McAllen native Will Collins. 

The retail shopping plaza near the intersection of I-2 and Mile 1 ½ East is expected to include Marshalls, Burlington, Boot Barn, Ross, DD’s Discount, and Rack Room Shoes, Texas Department of Licensing and Regulation records show. 

Peñitas Crossing

About 6,500 people live in the city of Peñitas, which sits along Expressway 83 on the far western edge of Hidalgo County. But more than 47,400 vehicles on Expressway 83 pass the site each day. 

There’s a retail construction boom expected by Peñitas Crossing, a $20 million development by Austin-based Palmer Companies, whose CEO, Gamble Palmer Jr, has ties to McAllen.

Peñitas Crossing is expected to include Home Depot, Burlington, Five Below, and Rack Room Shoes, with Olive Garden, Longhorn Steakhouse, and 7-Eleven nearby. The project will be built just east of Main Street in Peñitas along Expressway 83. 

Palmer Companies built and still manages Jackson Palmer Crossing in Pharr, anchored by Ashley Furniture, Home Depot, and Staples. 

DHR Behavioral Health Hospital 

Edinburg-based Doctors Hospital at Renaissance is the largest private employer in the Rio Grande Valley and continues to expand its brick-and-mortar footprint. 

DHR recently began construction on a $25 million behavioral health hospital in Pharr, according to state records. 

The new hospital is a public-private partnership with the city of Pharr and fulfills a state Health and Human Services contract. It also expands inpatient bed capacity, ranging from pediatrics to geriatrics, in addition to outpatient services, and expands mental health options for Rio Grande Valley residents. 

The hospital is under construction along the 4800 block of Jackson Road just north of Nolana Avenue. 

Embassy Suites in Brownsville

The Brownsville market is expected to have three hotels under construction this year — including a new $10 million Hilton Embassy Suites. 

The seven-story-tall 168-room hotel is expected to have convention center-style meeting space and a lazy river. 

The developer behind the hotel is Orbit Hospitality LLC, a company controlled by McAllen hotel magnate Barry Patel and his son, Hershal Patel. 

The future hotel will sit at 301 Pablo Kisel Boulevard near the intersection of Springmart Boulevard and just east of Interstate 69. 

RGV Nearshoring Park in Brownsville

While there are plenty of cold storage warehouses planned across the Rio Grande Valley, a new industrial park near the Port of Brownsville is hoping to capture the market of businesses looking for nearshoring opportunities. 

Nearshoring is a concept where companies may relocate or invest in manufacturing closer to the U.S. or Canada to avoid tariffs. Sweeping changes by the Trump administration affecting U.S. tariff policies dominated 2025 and are expected to continue in 2026. 

Commodities Integrated Logistics, often known as CIL, is investing at least $20 million in its RGV Nearshoring Industrial Park, a joint venture between Joaquin Spamer and Carlos Garcia. The first building in the industrial park is already under contract with an unnamed manufacturing client. 

Texas A&M Advanced Manufacturing

Texas A&M University is expanding its Advanced Manufacturing hub in Brownsville with a $22 million investment for a workforce development center. 

The hub is located along State Highway 48 near the Port of Brownsville. The new building will have classrooms and laboratories, enabling workers to gain experience with advanced machinery, automation, digital technology, safety protocols, and quality control. The concept is to bring educational opportunities to where employees already live, rather than have students travel to further their vocational education. 

There’s been an expansion in the industrial sector near the Port of Brownsville, including liquefied natural gas (LNG) export terminals, SpaceX, and a new shipbuilding company, Karpowership. 

Texas A&M created the program in 2022, and more than two dozen companies have enrolled employees at the training center. It has already awarded upwards of 15,700 skills-based certificates.