First Industrial Realty Trust is investing in Houston’s anemic northeast industrial submarket.
The Chicago-based firm is planning a $25 million, 430,000-square-foot spec warehouse that includes a 5,000-square-foot office, at 8251 Liberty Road, off the North Loop, 2 miles south of Settegast. Local firm ADB Design Services, a company associated with ARCO Design Build, is the architect.
Construction is expected to start in February with full buildout estimated 2025, according to filings with the state of Texas, although cost and date estimates are preliminary and subject to change.
Houston’s northeastern submarket lags behind its counterparts in industrial activity, according to JLL. Less than 1 percent of the city’s 7.8 square feet of leasing transactions in the first quarter occurred here.
However, things could turn around with a slate of massive industrial projects on the way.
McCord Development is building a 500,000-square-foot bioscience campus as part of the massive $12 billion Generation Park development in northeast Houston. The tract is expected to be outfitted with office spaces, laboratories and manufacturing sites by the end of this year.
Another 1.4 million square feet of industrial space is under construction in Generation Park.
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Speculative builds continue to dominate Houston’s overall industrial market, accounting for 81 percent of deliveries last quarter and roughly 71 percent of projects under construction, according to JLL.
First Industrial Realty holds four industrial properties in Greater Houston totaling nearly 600,000 square feet. This project will increase its Houston footprint by more than 40 percent. The company’s portfolio boasts a 2 percent vacancy rate, according to SEC filings, significantly below the average vacancy rate of the Greater Houston industrial market which is about 7 percent.