Tigerhawk Logistics has leased more than 13 percent of the recently completed Portside Logistics Center industrial complex, becoming its first tenant.
The lease comprises 135,000 square feet and is expected to anchor the 1 million-square-foot facility at 4838 and 4908 Borusan Road in Baytown, developed by Stream Realty.
Stream’s Tyler Maner and Jeremy Lumbreras helped broker the deal and are leading the leasing efforts for the development.
Stream Realty completed the speculative two-building complex, in a joint venture with Missouri-based Principal Asset Management, in September.
Portside Logistics Center includes a 760,000-square-foot cross-dock building and a 258,000-square-foot front-load building and boasts speculative office space and a white-boxed interior warehouse.
Stream started construction on the 60-acre project last summer. It sits adjacent to the 15,000-acre TGS Cedar Port industrial complex. It is the country’s largest master-planned rail- and barge-served industrial complex and the fifth-largest in the world.
Its location positions tenants for expedited access to Port Houston’s critical container terminals including Bayport, which recently completed a $95 million expansion.
Port Houston and the southeast submarket helped elevate the metro’s industrial market in the second quarter.
However, the industrial real estate market cooled in the third quarter, experiencing a 27 percent decrease in construction quarter-over-quarter, according to Partners Research. New industrial project starts have fallen 87 percent between 2023 and 2022, Avison Young estimates. This year is set to be one of Houston’s lowest years on record for industrial construction starts.
Deflated construction comes on the heels of increased labor costs and interest rates causing a dip in new supply and easing demand.
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Leasing demand in Houston’s industrial market had decreased 45 percent through the third quarter. About 55 percent of industrial deliveries this year have been fully leased, and occupancy increased to nearly seven percent in the third quarter, according to Partners Research. The market remains strong, but not as strong as it once was.
Stream Realty is developing its largest Greater Houston industrial development, Empire West, which is set to span 300 acres on Empire Boulevard in Brookshire about 10 miles west of Katy. The development includes 10 distribution and warehouse locations The final phase is expected to complete construction in 2025.