Provident Realty Plans $77M Industrial in Baytown

A massive project planned in Baytown will expand that city’s industrial market, adding to a string of recent warehouse developments southeast of Houston.

Provident Realty Advisors expects to start construction in April on a nearly 1.3 million-square-foot industrial campus in Greater Houston’s port district. Named Port 99 Logistics, it will house two new tilt-wall buildings for a combined cost of nearly $77 million, or about $60 per square foot, according to a filing with the State of Texas.

The Dallas-based firm will build the complex, expected to be complete in October, near the Grand Parkway, sandwiched between Chapman Lake and Dutton Lake at 16702 FM 2354. Houston-based international design firm Ware Malcomb will spearhead the design of the new development.

Port 99 Logistics will be Provident Realty Advisors’ largest industrial development to date, its first industrial development in the Greater Houston area and its fourth project in the city. Provident is also developing the Grid mixed-use community on the site of a former Texas Instruments campus in Fort Bend County.

Baytown has been the site of massive growth in the industrial market. Southeast Houston has over 7.5 million square feet of industrial construction underway, according to a market report by real estate advising firm Avison Young. The same report found the southeast region accounts for 24 percent of Greater Houston’s total industrial developments, leading all other submarkets in the Bayou City.

FedEx in November leased 337,000 square feet of warehouse space at Baytown’s Port 10 Logistics Center, 15 minutes northwest of the new Port 99 Logistics center. The area is located off Trinity Bay and the Port of Houston, offering potential for both rail and barge services.

Momentum in the e-commerce market post-pandemic has exploded demand for industrial warehouse space across the United States with Texas leading the pack. Dallas and Houston, the No. 1 and 2 industrial markets, respectively, account for more than 20 percent of new industrial projects by square foot nationwide.

Provident Realty Advisors was established in 1991 and is opening a Houston office this year. It has amassed over $5 billion of real estate projects totaling 20 million square feet across the Texas Triangle with additional holdings in Louisiana, Oklahoma and Colorado. The projects range from mixed-use developments to retail, residential and industrial projects. Provident Realty Advisors could not be reached for comment on the Port 99 Logistics development.