#WarehouseWednesday: Go big or go home

Lovett Industrial, MiTek, Junction claim spotlight for Houston this week

MiTek CEO Mark Thom, Junction Commercial Real Estate's Managing Partner Reed Vestal and Lovett Industrial CEO Charlie Meyer (LinkedIn, Junction Commercial Real Estate, Lovett Industrial, Getty)

TRD Staff

Mar 1, 2023, 3:14 PM

Demand is so high for warehouse and logistics space in Texas that industrial developers can’t build ’em fast or big enough, and while that accommodates amazonian retailers, it’s kind of a problem for the little guy. Most new construction is at least 100,000 square feet, and it’s nearly impossible to find anything smaller, the San Antonio Business Journal reports. Even when places in the 30,000-square-foot range are available, rental prices have gone up by about $2 a foot in San Antonio since 2020, putting the going lease rate at about $13 to $15 per square foot.

Here’s what else is up this #WarehouseWednesday:

Lovett Industrial plans two warehouse buildings in Stafford, a suburb southwest of Houston, according to plans filed with the Texas Department of Licensing and Regulation. The buildings, in the Stafford Logistics Park at 13650 Pike Road, are expected to cost $30 million and cover 785,000 square feet combined, which comes to about $38 per square foot.

Missouri-based construction software company MiTek plans to build the second phase of an industrial complex in Houston, according to a filing with TDLR. Its plans for 1318 Bammel Road include a 161,000-square-foot industrial manufacturing space costing an estimated $16.3 million, or about $101 per square foot.
Junction Commercial Real Estate began construction on Southeast 45 Logistics Park at 5115 South Shaver Street in Houston recently, the Houston Business Journal reports. The 170,000 project sits on just under 12 acres and is expected to cost about $12.7 million, or $75 per square foot. Reed Vestal, Junction managing partner, told the publication, “we are forecasting record lows in vacancy rates in coming months.”
Texas Gov. Greg Abbott held his state of the state address on Feb. 16 at the United States’ only rare-earth magnet company, San Marcos-based Noveon Magnetics. Its 150,000-square-foot plant at 1550 Clovis R. Barker Road is ramping up manufacturing, the Austin Business Journal reported. The company launched in 2020 out of a 10,000-square-foot building near the Austin-Bergstrom International Airport to offer domestic competition to China’s dominance in the sector. Noveon, formerly known as Urban Mining Company, took advantage of property tax rebate incentives in the move, and its HQ has plenty of room to expand. It sits on 10 acres, and a capital campaign launched two years ago has raised $100 million, the outlet reported.

ICYMI: Prologis has big plans for 68 acres in Williamson County, near Austin. Meanwhile, Wayfair scrapped plans for a 1.2 million-square-foot distribution center in Houston.