Houston's top 5 neighborhoods where industrial construction is booming

Dec 5, 2014, 12:25pm CST

Send this to a friend

Three Square Design Group

Beltway Crossing Northwest is scheduled for completion by the end of the year. It is being developed by Panattoni Development Co. and designed by Three Square Design Group.

Reporter- Houston Business Journal
Email  |  Twitter

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:

  1. Far northwest: 2.9 million square feet (warehouses, distribution centers, flex and research and development)
  2. Far north: 1.7 million square feet (warehouses and distribution centers)
  3. Far south: 220,000 square feet (warehouses and distribution centers)
  4. Near north: 120,000 square feet (manufacturing)
  5. 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.

Comments

If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.

Inside Houston Business Journal

Emirates A380 arrives in Houston

Most Popular

  • Slideshows
  • Facebook
  • Twitter
  • Emailed
  • Mobile

People on the Move

Neil Simon

Allen Harrison Company

Jeffrey Schaefer

Hotel ICON

Kenneth Jackson

Cy-Fair Federal Credit Union

Courtney Smith

City of Houston

Gilbert Alba

Cornerstone Strategic Partners, LLC

Jerome Gray

American Leadership Forum

Post a Job View All Jobs

© 2014 American City Business Journals. All rights reserved. Use of this Site constitutes acceptance of our User Agreement (updated 12/23/13) and Privacy Policy (updated 12/23/13).

Your California Privacy Rights.

The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of American City Business Journals.

Ad Choices.