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<\/p>\nA 420K SF distribution facility in Baytown secured a full-building lease prior to its construction completion, helping fuel Houston\u2019s\u00a0best quarter for industrial leasing activity since 2023.\u00a0<\/p>\n
<\/p>\n
\n Courtesy of TGS Cedar Port Partners\n <\/p>\n
\n Construction of DC 9 at TGS Cedar Port Industrial Park in Baytown\n <\/p>\n
The lease with Supply Chain Management filled the DC 9 building, expected to deliver in March at TGS Cedar Port Industrial Park<\/a>. Along with\u00a0the lease, developer TGS Cedar Port Partners broke ground on DC 10, an almost identical building slated to deliver in the second quarter.<\/p>\n Analysts say this activity is reflective of healthy demand in Houston\u2019s industrial market, which is supported by a strong labor force, population growth and the heavily trafficked Port Houston<\/a>.\u00a0After more than 35M SF of industrial space was delivered in 2023, development has leveled out but not fallen off.\u00a0<\/p>\n \u201cIn 2023 we had a record year of deliveries, and I don’t think anybody expected Houston to eat through that new development so quickly,\u201d said Allie Zepeda, senior research analyst for JLL<\/a>.\u00a0<\/p>\n At the time, supply was far outpacing demand<\/a>, pushing vacancy rates up. Now Houston has seen about 13M SF of supply delivered this year. Another 17M SF is under construction, with 34% preleased, according to JLL\u2019s third-quarter report.<\/p>\n Vacancy inched up 50 basis points, but 11.8M SF of leasing activity and even more expected in the fourth quarter signal a balanced market.\u00a0<\/p>\n \u201cWe continue to be in a healthy place, with our vacancy at 6.8%,\u201d Zepeda said. \u201cIt’s still below our long-term average of 7%.\u201d\u00a0<\/p>\n The quarter\u2019s leasing activity was led by PepsiCo<\/a> expanding to 1M SF at I-10 West Trade Center in Brookshire, according to\u00a0the JLL report. Food, beverage and retail distributors often tie to population growth, JLL Texas Research Director Rachel Alexander<\/a> said.\u00a0<\/p>\n \u201cSo it’s no surprise that\u00a0[PepsiCo]\u00a0went out to a Katy location where it’s very easy to distribute to Austin or San Antonio and also be near the population density that’s out there,\u201d she said.<\/p>\n Supply Chain Management, the tenant that preleased the DC 9 building, is a third-party logistics company that will benefit from TGS Cedar Port Industrial Park\u2019s direct barge and dual-rail access, according to a press release. The park has a barge dock, capacity for more than 5,500 rail cars and another 1,000 rail car spaces under development.<\/p>\n Manufacturers were also a major driver of industrial leasing activity in the third quarter. Foxconn<\/a>, the Taiwanese electronics manufacturer, expanded to two 450K SF buildings at Innerbelt Northwest Logistics Park and a 657K SF building at 1401 N. Rankin Road.\u00a0<\/p>\n Panelmatic, an electronic-panel manufacturer, expanded to 728K SF at WestPoint 45 in North Houston. New-to-market Inventec, another Taiwanese electronics manufacturer, leased 538K SF in Katy<\/a>,\u00a0where it plans to invest $55M to transform warehouse space\u00a0into a manufacturing<\/a> facility.\u00a0<\/p>\n As manufacturers look to avoid import tariffs<\/a>, Houston is an attractive option because of its substantial labor force and the continuous growth of Port Houston. Year-to-date port traffic was up 5%<\/a>\u00a0at the end of August.\u00a0<\/p>\n These factors give developers confidence to continue breaking ground on industrial buildings in Houston, Alexander and Zepeda said.<\/p>\n \u201cHouston is the little engine that could,\u201d Zepeda said. \u201cIt’s shown a strong track record of resiliency and success. Based on our Q3 momentum, I anticipate that Q4 will be even stronger.\u201d\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"A 420K SF distribution facility in Baytown secured a full-building lease prior to its construction completion, helping fuel…\n","protected":false},"author":3,"featured_media":293192,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5130],"tags":[150119,12580,4345,138558,150120,40809,748,17223,138059,68342,358,150117,150118,3187],"class_list":{"0":"post-293191","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-houston","8":"tag-allie-zepeda","9":"tag-foxconn","10":"tag-houston","11":"tag-houston-industrial","12":"tag-inventec","13":"tag-jll","14":"tag-manufacturing","15":"tag-pepsico","16":"tag-port-houston","17":"tag-rachel-alexander","18":"tag-texas","19":"tag-tgs-cedar-port","20":"tag-tgs-cedar-port-industrial-park","21":"tag-tx"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115352505231094358","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/293191","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=293191"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/293191\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/293192"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=293191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=293191"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=293191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}<\/p>\n