Published Jul 25, 2022 by Brina Morales
Industrial parks in the greater Houston area are attracting significant new development projects and tenant companies, proving the region’s strength as a logistics hub.
TGS Cedar Port Industrial Park has announced several new industrial projects or expansions, including a new 164,000-square-foot Class-A speculative truck terminal. Dayton Street Partners made the 47.4-acre purchase at the industrial park located in Chambers County. According to a press release, the Chicago-based developer said the park’s location was key in the decision. The intermodal transportation logistics facility offers direct access to major interstates and highways, including Grand Parkway, and the Houston Ship Channel, and rail service.
“Houston has proven itself as a powerhouse logistics hub,” said Hower Wedren, Dayton Street Partners founder and managing principal, in a press release. “The opportunity to join the incredible development at Cedar Port Industrial Park and bring the very first spec truck terminal to the area is tremendous and we look forward to continued involvement in Houston’s logistics market.”
The truck terminal will include a build-to-suit office, a guard shack, a 10,000-square-foot truck maintenance facility and a potential fueling station. The terminal is expected to be completed by the second quarter of 2023.
Earlier this year, Article, an online furniture retailer, announced its first Texas fulfillment center at Cedar Port. The retailer’s 500-square-foot build-to-suit warehouse will join other major companies with a presence at the industrial park, including IKEA, Walmart, Home Depot and Floor & Décor.
According to the Houston Chronicle, Walmart is expanding its presence by building a new 1 million-square-foot distribution center at Cedar Port Trade Center, located within the 15,000-acre industrial park.
Industrial projects are also gaining steam along the U.S. 290 corridor northwest of Houston. According to the Houston Chronicle, Pagewood recently broke ground on the Great 290 Distribution Center on 63 acres of land at the southwest corner of U.S. 290 and FM 2920 in Waller County. It will contain a 500,000-square-foot cross-dock building, which is expected to be completed in March 2023.
In January, Hines acquired 78 acres for a build-to-suit project in Beacon Hill, a master-planned community along U.S. 290 near FM 362 that will include commercial, multifamily and retail across 564 acres. According to the developer Wolff Companies’ website, the 290 corridor “supported by an excellent school district and the business-friendly climate in the City and County of Waller” sets the region up for “decades of high-quality growth and development.”
According to figures from CBRE’s analysis of the second quarter of 2022, Houston broke records for the highest second quarter absorption the industrial market has experienced in 20 years, coming in with 7.8 million square feet of positive absorption. It also found that market-wide vacancy rate decreased for the fourth consecutive quarter, reaching 4.4%. The most active submarkets for building activity were the Northwest, with 7.6 million underway and a total of 23.4 million citywide in the pipeline.
CBRE predicts another “strong year” for industrial activity and manufacturing in Houston as companies onshore their operations to avoid supply-chain disruptions.
Learn more about what makes Houston an ideal location to distribute goods around the country and the world.