Avera Breaks Ground on Cedar Port Logistics: 15 Acres Covered in New Industrial Park
Avera breaks ground on a 644,000-SF Cedar Port Logistics, a rail-served building in Baytown near the Port of Houston.
HOUSTON — One of Houston’s most active industrial submarkets is intensifying as Avera has broken ground on a 643,951-square-foot, rail-served building at Cedar Port Logistics, located near the Port of Houston. The 40.8-acre project is the newest addition to Baytown’s expansive industrial park, the largest master-planned rail-and-barge-served industrial park in the United States.
Positioned just off Houston’s Grand Parkway southeast of downtown, Cedar Port Logistics provides direct access to FM 1405, SH 225, SH 146 and Interstate 10. The site benefits from barge access via the ship channel and dual rail service from Union Pacific and BNSF. Several major companies already operate within the 15,000-acre park: Walmart, IKEA and Home Depot have committed to TGS Cedar Port Park, occupying more than 4.75 million square feet across three facilities. Most recently, Avera completed a build-to-suit at Cedar Port totaling over 500,006 square feet for Vinmar International; that Vinmar facility includes 10,000 linear feet of rail.
“Cedar Port Logistics creates a unique opportunity for users to operate in a prime location within one of the preeminent industrial parks in America, particularly valuable at a time when suitable industrial land sites in desirable areas have continued to become increasingly scarce,” said Trey Odom, President and CEO of The Avera Companies.
Trey Odom
Cedar Port Logistics is a joint development by Avera and AEW Capital Management.
Much of Houston’s current industrial demand is driven by distributors seeking convenient access to cargo terminals and rail infrastructure. In the past two years, several of the metro area’s largest logistics leases have involved facilities that rely on the Port of Houston for inbound and outbound goods.
The combined demand has made the southeast submarket near the port the region’s hottest area for new industrial development. More than 5 million square feet of space has been delivered over the past 12 months, with over 5.2 million square feet currently under construction—figures that are nearly double those of any other submarket. Reflecting this strong demand for port-adjacent space, rents in the area have risen approximately 21 percent since 2012, according to HFF.
“A big-box retailer importing goods absolutely wants to be near the port. One reason they choose Houston is our growing population. With that growth we’re seeing significantly larger deals, especially close to the port,” said Joel Michael, Industrial Broker with NAI Partners. Michael and NAI Partners were selected to market Cedar Port in 2015.
Trans-Global Solutions acquired the Cedar Port property in 2014. Since then, the park has seen more than $42 million invested in infrastructure improvements. The development covers roughly 15,000 acres—an area nearly the size of Manhattan—and features a 200-acre Foreign Trade Zone (FTZ), with an additional 200-acre FTZ under development. These FTZ locations add value for operations tied to global supply chains.
Despite rapid progress, significant build-out remains. Approximately 11,000 acres within the industrial park are still available for development. With Houston’s population continuing to grow and the Port of Houston registering record volumes as it advances expansion plans, the southeast submarket is likely to remain one of the most active industrial sectors in the region across multiple asset classes.
