Pagewood purchased acreage in Northwest Houston for its second ground-up industrial development, which is expected to take shape quickly.
The Houston-based commercial real estate firm plans to develop Mosielee Commerce Park, at 12010 State Highway 249, a speculative warehouse project designed to meet the increasing demand for high-end industrial space in the city’s northwest submarket, the Houston Business Journal reported. The cost wasn’t disclosed, but financing for the project was secured through New York’s Voya Financial.
The project will span 32 acres and include two warehouse properties. The first building, a cross-dock warehouse with 274,800 square feet, will provide direct access from Old Foltin Road, while the second building, situated along Highway 249, will offer 154,900 square feet of front-load warehouse space.
Construction is set to begin this month, with completion expected by the third quarter of next year. JLL’s David Buescher and Geoff Perrott will manage leasing for the property once it’s complete.
It is still a good time for industrial development in Greater Houston, if the pace of absorption continues. Almost 6.2 million square feet of space was absorbed in the third quarter, bringing year-to-date absorption to 16.4 million square feet, a 4 percent increase over the first three quarters of last year, according to CBRE.
“The industrial sector in northwest Houston is thriving, with vacancy rates continuing to drop and steady absorption of available spaces,” said Mat Volz, Pagewood’s managing principal.
Meanwhile, the development pipeline has slowed a little because of a tight lending market, and 11.1 million square feet was under construction in the third quarter, according to CBRE.
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The development will provide easy access to the Beltway 8 and other major thoroughfares. The strategic location also allows for efficient truck circulation with six points of ingress and egress designed to improve traffic flow around the site.
— Andrew Terrell