One of the largest industrial projects in the Houston market is open and ready for more tenants.
Stream Realty Partners announced the completion of phase two of its Empire West Business Park, a 300-acre development in Brookshire with nearly a mile of frontage along Interstate 10 and US 90. The project, located west of Woods Road near Amazon, Costco and Igloo, consists of six buildings totaling 2.3 million square feet.
So far, an undisclosed tenant has leased 95,000 square feet in Building 7, according to Stream. Spaces from 50,000 square feet to over 1 million square feet are available for occupancy.
The biggest project yet for Dallas-based Stream, Empire West is coming to market as demand, driven by the growth of e-commerce, has been exceptionally strong.
“Houston’s industrial market continues to operate at an incredibly high level, and our offering enables users of all sizes to take advantage of Empire West,” said Matteson Hamilton, Executive Managing Director and Partner at Stream. “Our team was intentional with the design and speculative improvements beyond the buildings, which were well received by prospects in the market.”
Demand for industrial space grew by 13.1 million net square feet in the Houston market in the first half of the year, in line with record 2021 uptake, according to commercial real estate firm Colliers International. The industrial vacancy rate fell to 5.7% in the second quarter, from 6.1% in the first quarter.
Developers are adding 21.9 million square feet of space in the Houston area, including two buildings of 1.2 million square feet each at TGS Cedar Port Industrial Park in Baytown, according to Colliers. Rents typically increase 3.5% to 4% per year, compared to the traditional rate of 2%, according to Colliers.
Phase two adds 1 million square feet across three buildings in phase one, completed in April 2021. The largest tenant is Ferguson Enterprises, a plumbing provider occupying 750,775 square feet. The first two phases were built on a speculative basis before finding tenants, a sign of confidence in the market.
Preliminary work has begun on the third and final phase to bring additional buildings to market quickly, according to Stream. The 650,000 square foot Building 10 construction pad has been constructed, while Building 11, which will likely contain 150,000 square feet, is in the planning stage.
The self-storage empire is growing
New York-based Andover Properties has expanded its Houston-area self-storage portfolio with the acquisition of five properties totaling more than 2,700 units in two separate transactions.
The company announced its acquisition of a portfolio of four properties, totaling 478,400 leasable square feet spread over 2,200 units in Houston, Baytown and Magnolia. The properties will be converted under Andover’s Storage King USA brand.
“These are all assets with good real estate fundamentals: large population, strong population growth, good occupancy and on roads with heavy vehicle traffic,” said Brian Cohen, president and CEO of ‘Andover, in a statement. “They fit perfectly into our portfolio footprint, as we have existing stores in all of these locations.”
The properties consist of 9000 Westpark Drive and 13001 Veterans Memorial Drive in Houston, 4624 Garth Road in Baytown, and 28543 FM 2978 in Magnolia. Dave Knobler of Marcus & Millichap’s Houston office and Charles “Chico” LeClaire of Marcus & Millichap’s Denver office represented the seller, a Georgia-based partnership, and recruited the buyer.
Earlier this month, Andover Properties announced its acquisition of Caney Creek Self Storage, a 97,300 square foot, 717 unit facility located at 18318 US 59 in New Caney.
The agreements bring Storage King USA’s portfolio to 145 facilities in 18 states, including 16 in Houston and 48 in Texas.
Upcoming Conroe Apartments
Atlanta-based Wood Partners opened Alta Sergeant, a 354-unit apartment complex located at 650 Sergeant Ed Holcomb Blvd. N. near Interstate 45 in Conroe.
The property is close to the shopping, dining and entertainment of Conroe Marketplace and the community of Grand Central Park. Units will contain one to three bedrooms. Amenities include a resort-style pool, outdoor kitchen, dog park, fitness center, club room, business center, and multiple conference and entertainment spaces.
The opening is scheduled for May 2023.
Comings and goings
Kristen Barker has joined the Houston office of Edge Realty Partners, a commercial real estate firm providing national investment brokerage, development and sales services, as a Principal. Barker is responsible for tenant mix strategy, marketing plans, remarketing and lease negotiations for third-party landlords. She previously served as senior vice president at retail brokerage Wulfe & Co.
Commercial real estate professional Jonathan Probst has joined Dallas-based SRS Real Estate Partners as senior vice president and general manager of the Houston office. Probst, who has spent most of his career at The Retail Connection, focuses on tenant representation, project leasing and investment sales.
katherine.feser@chron.com
