Free Trade Zone Properties (FTZ) – What Are They and Why Are They Important to Houston’s Commercial Real Estate?Posted
A Free Trade Zone property (FTZ) is a federally mandated and managed “special economic zone”, a geographic area where products can be placed and stored, re-manufactured or modified and sent to U.S. customers without paying customs duties or inventory tax during the time the products are within the boundaries of the Zone. These re-manufactured products can also be re-exported without Customs Duties being charged.
Many Free Trade Zones are located in sea port or airport areas where products are imported into this country and are used for manufacture of finished goods for shipment out to customers in the country in which the FTZ is located and also sent back abroad. If you are in the business of manufacturing products and use imported goods as raw materials, and you want to avoid inventory tax or customs duties being charged during the time they are in process, a FTZ could be for you!
Houston Free Trade Zone for Sale
Michael Hill Properties happens to be responsible for selling one of the few Houston area commercial free trade zone properties.
Michael Hill’s free trade zone property is approximately six acres of mostly concrete or stabilized land on the near east side of Houston near downtown and on Buffalo Bayou. This commercial property includes approximately 20,000 sq. ft. in four (4) office, warehouse and shop buildings along with a concrete 200 ft. long barge dock built around 1995. This dock has water depth which accommodates fully loaded barges. The property is for sale, with users generally the best prospect, but also could be of interest to an investor interested in leasing this facility out to users who need a general purpose barge dock for special projects. There is a high local demand for this type of facility.
Interesting Fact about FTZ Properties
An Interesting Fact I Learned from this Commercial property listing is that anything stolen from a FTZ is a Federal offense (almost as good as a chain link fence)! One of the things I love about industrial real estate brokerage is there is often the opportunity to learn about special purpose facilities, such as FTZs, while plying our trade of selling and leasing them. We are extremely lucky to live and work in this city, because Houston has such a favorable business climate!
Stay tuned for more ….
Michael Hill Properties offers more than 40 years 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, visit mhprop.com or call (713) 960-6060.