PASADENA, Texas — Clay Development & Construction Inc. has started construction on Energy Commerce Phase II, a speculative two-building warehouse and distribution project totaling 334,360 square feet on the east side of Houston in Pasadena.
The project is scheduled for completion in the first quarter of 2018 and is designed to meet growing market demand for modern industrial space that supports efficient distribution and logistics operations.
“The Port of Houston area is experiencing strong growth driven by increased Gulf Coast refinery output, rising exports of crude oil and plastic pellets, and expanding consumer-product distribution as Texas’ population grows,” said Robert Clay, president of Houston-based Clay Development & Construction. “Tenants are seeking new buildings with updated design features that improve operational efficiency and flexibility. Key requirements include wider column spacing, higher clear heights, expanded trailer parking, and other amenities that support distribution, packaging, storage and general business operations.”
Sales and leasing for Energy Commerce Phase II will be handled by John Simons and Holden Rushing of NAI Partners. Construction financing for the development was provided by Trustmark Bank.
Energy Commerce Phase II is part of the larger Energy Commerce Business Park, a 45-acre deed-restricted development located on Sam Houston Parkway/Beltway 8 just south of Highway 225 in the Port of Houston submarket. The new phase will include two buildings: a 101,400-square-foot rear-load facility and a 232,960-square-foot cross-dock building. The layout and building types were chosen to accommodate a range of industrial users, from last-mile distribution to bulk storage and cross-docking operations.
Houston’s industrial real estate market has shown sustained strength and is expected to continue expanding as several new chemical plants come online through 2020. Forecasts indicate a notable rise in plastic pellet exports from the Port of Houston, which is expected to support increased regional demand for warehousing and logistics facilities. At the same time, Houston’s role as a regional distribution hub for national and regional retailers has driven a parallel increase in demand for modern warehouse space equipped for quick inventory turnaround, efficient dock operations and flexible storage configurations.
Energy Commerce Phase II represents Clay Development’s second phase of work within Energy Commerce Business Park. Phase I was completed in 2016 and delivered two buildings totaling 287,560 square feet. That initial phase achieved significant leasing success and is currently about 70 percent leased to a diverse mix of tenants, including DNA Motoring, Safelite, Cintas First Aid & Safety, Applied Industrial Technologies, JGB Enterprises, HMT, LLC and Southern Dock Products. In 2015, First Industrial Realty Trust acquired the Phase I assets of Energy Commerce Business Park.
The design and amenities of Phase II reflect trends in industrial construction that prioritize operational efficiency and tenant flexibility. Features such as higher clear heights allow for increased racking density and improved storage efficiency, while wider column spacing supports larger material-handling equipment and easier maneuverability inside the buildings. Expanded trailer and truck parking areas aim to reduce on-site congestion and support faster loading and unloading cycles—factors that are increasingly important to companies focused on reducing turnaround times and maintaining supply chain reliability.
As developers respond to tenant preferences and logistical demands, new speculative developments like Energy Commerce Phase II help address a market shortage of contemporary industrial buildings. By providing modern specifications, updated mechanical systems and strategic locations near major transportation corridors and the Port of Houston, these projects position themselves to attract a range of logistics, manufacturing and distribution tenants seeking high-performing facilities.
With construction underway and leasing activity organized through experienced brokerage and financing partners, Energy Commerce Phase II is expected to add valuable industrial capacity to the Pasadena submarket and support ongoing economic activity tied to energy, petrochemical exports and retail distribution in the Houston region.