326,400 Sq Ft Multi-tenant Investment Property, North Houston
326,400 Sq Ft Multi-tenant Investment Property, North Houston
45,000 Sq Ft Distribution Warehouse, Northwest Houston
45,000 Sq Ft Distribution Warehouse, Northwest Houston
780,000 Sq Ft on 50 acres, Food Distribution Warehouse, West Houston
780,000 Sq Ft on 50 acres, Food Distribution Warehouse, West Houston
155,000 Sq. Ft. Crane Served Fabrication & Distribution Warehouse
155,000 Sq. Ft. Crane Served Fabrication & Distribution Warehouse
24,000 Sq Ft. Headquarters Building, Central Business District
24,000 Sq Ft. Headquarters Building, Central Business District
40,000 sf headquarters, manufacturing & distribution warehouse
40,000 sf headquarters, manufacturing & distribution warehouse
200,000 Sq Ft, Large Distribution Warehouse, South Houston
200,000 Sq Ft, Large Distribution Warehouse, South Houston
90,000 Sq Ft, Food Distribution Warehouse
90,000 Sq Ft, Food Distribution Warehouse
100,000 Sq Ft. Headquarters Office/Warehouse, South Houston
100,000 Sq Ft. Headquarters Office/Warehouse, South Houston

Distribution Warehouse New Construction Expands in Houston

Posted

Distribution warehouse new construction projects are in high demand around the Greater Houston area as evidenced throughout several markets.  Northwest, North and West Houston are still the favored distribution warehouse development areas as opposed to the South and Southeast Houston areas of the city where existing warehouse projects are still seeking tenants.  Distribution warehouse rents have stabilized and due to high demand primarily by the energy industry, there have been several announcements of new warehouse construction projects as well as deals being done in these new projects.

New Distribution Warehouse Construction Announcements:

  • Carson Co. at Hwy 225 in Pasadena
  • ProLogis at Northpark Central
  • DCT/ Proterra at Okanella St.
  • Transwestern at Mason Rd.
  • Levey Group at Sam Houston Parkway N.
  • Liberty Property Trust at Hollister Rd.

Most of these are located  in the north and northwest areas of Houston and the new emerging market in the Katy, Texas area west of the city is seeing new speculative distribution warehouse construction for the first time.  Notable recent deals for occupancy of new distribution warehouse buildings in these new markets have been announced by:

  •  Igloo Co. (by Panattoni Dev. in Katy, TX.)
  • Weatherford (by Clay Dev. in Katy, TX.)
  • Medline Industries (in Katy, TX.)
  • Goya Foods (in Katy, TX.)
  • An un-named third party logistics firm on Okanella St. in northwest Houston.

Typical projects are designed for heavy truck traffic with wide areas for truck driving and parking, and are built truck dock high with lots of overhead doors.  The warehouses are typically sprinkled for fire protection and many have ESFR (early suppression, fast response) systems for hazardous material storage.  Typical clear height in these new buildings is 30 ft. and most have wide column spacing (50 ft. x 50 ft.).

Market asking rental rates for these buildings vary but are generally offered on a NET lease basis and range from $.35 per square foot (psf) to $.45 psf/mo., with expenses being approx. $1.80 psf/year.

In Houston, which has no zoning, location and major street or freeway access is essential and industrial development land is getting more and more difficult to find which offers municipal utilities and ease of project construction.

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Michael Hill Properties offers more than 40 years of experience in brokering commercial industrial properties, such as distribution warehousing and manufacturing ,for sale and lease in the Greater Houston Area as well as outside of Houston. For more information on Michael Hill Properties, mhprop.com or call (713) 960-6060.