Scout Cold Logistics landed oil and gas technology giant Baker Hughes as a tenant in Pasadena.
The Houston-based energy company filed plans for interior build out of the Scout Cold Logistics Center at 10575 Red Bluff Road at Port Houston, 5 miles north of Clear Lake.
Baker Hughes plans 25,000 square feet of office space, 25,000 square feet of warehouse space, and 200,000 square feet of light manufacturing.
The finish outs are expected to cost $18.55 million, or about $74 per square foot, though preliminary estimates are subject to change. Local technical designer Energy Architecture will spearhead design. Construction is slated to begin April 30 and take about a year.
Miami-based real estate investment and development firm Scout Cold Logistics, founded by CEO Vincent Signorello, built the warehouse on spec in 2019. It was the firm’s first project in Greater Houston and has an assessed value of $20 million, according to the Harris Central Appraisal District.
The firm owns 22 industrial properties across the country, including six within the Texas Triangle, totaling over 10.3 million square feet, according to its website.
Houston’s Southeast industrial submarket boasts the largest construction pipeline in the metro, with nearly 5 million square feet of product set to hit the market, according to JLL.
A robust development pipeline contributed to the surge in deliveries, although construction starts declined steadily throughout last year. They plummeted by over 50 percent, with 15 million square feet of projects underway by year end.
Meanwhile, leasing was white hot in 2023. Despite the construction slump, leasing activity reached its third-highest annual total on record, with 34.6 million square feet of leases in 2023. Vacancy increased marginally in the fourth quarter, hitting nearly 8 percent, but is expected to stabilize and decrease by mid-2024.
Baker Hughes in January leased five floors, about 130,000 square feet of office space, in the Energy Center II, at 575 North Dairy Ashford Road, in a move to consolidate its Houston-based workforce.
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