The expansion of Interstate 35 (I-35) through Gainesville, Texas, is significantly impacting local land values and return on investment (ROI), fueled by enhanced connectivity and robust business growth. This major infrastructure project, led by the Texas Department of Transportation (TxDOT), extends from FM 3002 in Cooke County to the Red River at the Oklahoma border. It includes widening the highway from four lanes to six with plans for future expansion to eight lanes, improving intersections, and constructing six new frontage road bridges over key crossings like the Elm Fork of the Trinity River and BNSF railroad tracks. These upgrades aim to boost traffic flow and accessibility along one of North Texas’s crucial transportation corridors.
Traffic volume is already increasing due to these improvements, with vehicle counts (vehicles per day or VPD) on the rise, making Gainesville a more attractive location for developers and site selectors. Daniel Batey, Vice President of Range Realty Advisors, notes that better visibility, ease of access, and increased VPD from the I-35 expansion are drawing higher-quality retail, restaurant, hotel, and apartment projects to the area for businesses that previously overlooked Gainesville.
The redevelopment seen near the northeast corner of I-35 and Highway 82, featuring quick-service restaurants and multi-story office buildings, exemplifies how infrastructure investment translates directly into economic revival. TxDOT projects the completion of the six-lane expansion by the end of 2025, expected to further catalyze commercial growth and land demand.
From an investment perspective, properties around and adjacent to the upgraded I-35 corridor are appreciating as they become increasingly sought-after. This creates compelling opportunities for investors seeking strong ROI as commercial and mixed-use developments capitalize on improved accessibility. Gainesville’s strategic location, north of Dallas-Fort Worth and close to Oklahoma, positions it as a burgeoning hub for commerce, manufacturing, and regional tourism.
Economic incentives and development agreements also underscore Gainesville’s momentum. Significant investments include an $18 million headquarters and operations center at I-35 and Highway 82, as well as multi-million dollar projects in apartment complexes and manufacturing facilities, supported by local economic development programs that have created over 1,200 jobs and attracted capital investments exceeding $400 million in recent years.
Hospitality and retail sectors are also thriving. For example, the Fairfield Inn & Suites reports a Revenue Per Available Room (RevPAR) of $97.42 for the year ending March 2025, ranking second in its local market segment, demonstrating healthy commercial activity along the corridor.
Overall, the I-35 expansion is a powerful catalyst for Gainesville’s growth by improving infrastructure, attracting quality development, and driving up land values. As the project advances and business optimism continues, land investors in Gainesville can expect enhanced ROI opportunities fueled by increased connectivity and a vibrant economy.
If you are considering land investment in Gainesville, now is an ideal time to explore opportunities along the evolving I-35 corridor. The transformative infrastructure improvements, combined with strong business expansion, create a dynamic market for durable land value appreciation and investment success.
Sources:
I-35 Improvement Project in Cooke County – Texas Department of Transportation (2025)
Economic Development Incentives | Gainesville, TX – Official Website
