Distribution Warehouses


In Houston, Texas, distribution warehouses are different than they are in other cities or other parts of the country. Because Houston is a gulf coast located city (2/5 of the south and southeast of Houston is the Gulf of Mexico), our distribution warehouses generally either serve the local area, a multi-state gulf coast area or our principal industry: Energy. In other markets like Dallas, Phoenix Chicago, New York or Los Angeles the buildings tend to be larger freestanding buildings to accommodate distribution to wider markets (100% in all directions). In Houston our distribution warehouses tend to be smaller and located in multi-tenant facilities, whereas the larger “big-box” distribution warehouses locate in more central areas of the country. Distribution Warehouse buildings in Houston tend to vary between 50,000 sf and 300,000 sf with many occupied by more than one tenant. There are “some” tenants which occupy over 100,000 sf, but not many. The active Distribution Warehouse areas of the city are primarily located in the northwest, some in the southwest, some in the east sector and not much in the other areas of the city. Years ago, the primary factor in where to locate a distribution warehouse was adjacent to an active railroad (Southern Pacific mainly). This is not necessarily the case now. Since there is no zoning in Houston, location near major freeways or at lease ease of ingress and egress is most important. Also, for the higher quality distribution warehouses, a location in a controlled environment business park is very desirable. Houston has issues such as: really flat land, complicating drainage facilities, access to utilities in newly developed areas, encroachment by undesirable (noise, smoke, odors, etc.) industry, dictate choosing a location where these issues are already address and the purchased site is 100% usable and trouble free.