Houston's top 5 neighborhoods where industrial construction is booming
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- Paul Takahashi
- Reporter- Houston Business Journal
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Industrial construction is booming in Houston.
During the third quarter, there were at least 45 spec and build-to-suit industrial buildings totaling 5.2 million square feet of industrial space under construction, which is more than double the space under construction at year-end 2013. About 18 percent of these new industrial properties are preleased, according to Transwestern.
Most of the new industrial space consists of warehouses and distribution centers, and is being built in the far northwest and northern suburbs of Houston. Much of the demand can be attributed to Houston's booming energy sector in the suburbs north of Houston and the chemical industry near the Port of Houston.
The largest project under construction is Beltway Crossing Northwest, a 441,000 square foot warehouse/distribution facility on North Gessner Road, a half-mile north of Beltway 8. The project is being developed by a joint venture between Panattoni Development Co. and LaSalle Investment Management.
One of the key challenges facing industrial developers next year is rising land prices, said Sandy Paul, the executive vice president of Delta Associates, Transwestern's research arm.
"Elevated land prices have helped to keep groundbreakings down," Paul said.
Here are the top five Houston submarkets where industrial construction is booming:
- Far northwest: 2.9 million square feet (warehouses, distribution centers, flex and research and development)
- Far north: 1.7 million square feet (warehouses and distribution centers)
- Far south: 220,000 square feet (warehouses and distribution centers)
- Near north: 120,000 square feet (manufacturing)
- Far east/southeast: 117,000 square feet (warehouses and distribution centers)
Paul Takahashi covers residential and multifamily commercial real estate for the Houston Business Journal.
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