Tesla expands with massive lease near Houston

Tesla is expanding in more than one Texas metro.

The electric vehicle manufacturer, headed by billionaire Elon Musk, signed a lease for more than 1 million square feet in the building at 111 Empire Boulevard in Brookshire, the Houston Chronicle reported. The Fortune 500 company will occupy Building 9 in the Empire West Business Park in the Houston suburb.

Neither the developer/landlord, Stream Realty Partners, nor Tesla have spoken about the project, but Brookshire officials said the company has been in contact with the city to permit the space.

Tesla’s main Texas facility is located in Austin. There, the company has proposed more than $700 million in new construction for its Giga Texas property. Plans call for 1.4 million square feet across four new buildings. Construction could begin as early as the end of next month.

Tesla’s plans to move to Brookshire could help the Houston-area city bring in more industrial and auto developers.

“That will give us bragging rights,” Barnes told the outlet. “A company of international renown like Tesla choosing Brookshire, Texas, really helps us diversify and enhances greater Houston’s standing in the global marketplace.”

Tesla’s Brookshire lease, which the company signed late last year, is one of the five largest industrial real estate deals signed in the Houston area in 2022.

Musk’s moves in other parts of Texas have some residents, disheartened by ecological disruption and a lack of transparency from Musk’s companies, contemplating moving. Ecological concerns in the area stem from recent wildfires and floods in Austin and Bastrop. Residents fear damage could worsen as the Boring Co. digs underground tunnels and aims to dump treated wastewater into the Colorado River.

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— Victoria Pruitt