HOUSTON – (Realty News Report) – The Hanover Company, a Houston-based developer known for high-rise apartment towers in the Galleria, on Montrose Boulevard and across the United States, is expanding into industrial real estate by developing warehouse and distribution facilities.
As e-commerce continues to reshape retail, demand for warehouse space has surged nationwide. Industrial construction has ramped up, and despite a wave of new development, markets have largely absorbed the additional distribution capacity.
Hanover has hired David Hudson, a seasoned industrial real estate executive who led Duke Realty’s Houston operations for many years and later served as president of Griffin Partners Development.
“We are excited to enter the industrial space, and we are thrilled to have David’s leadership in that effort,” said Brandt Bowden, Chief Executive Officer of Hanover Company. “With David’s knowledge and expertise in the industrial sector, and Hanover’s existing development platform, we are excited to begin our work in the sector.”
Based in Houston, Hudson will oversee Hanover Company’s industrial acquisition and development activities across the region.
“Over the last decade, the industrial sector has evolved and the demand for industrial space has seen dramatic and historic increases,” Hudson said. “Both the Hanover Company and I believe we are in the early stages of a complete transformation of how goods get from the manufacturer’s assembly line to consumers’ living rooms.”
Industrial leasing activity in Houston has been robust. In the third quarter, Houston recorded 11.6 million square feet of warehouse absorption, according to NAI Partners.
Year-to-date through three quarters, Houston registered approximately 34 million square feet of industrial leasing transactions, NAI reported. Some 14.7 million square feet of industrial space is currently under construction, including major projects near the Port of Houston.
“The largest leases in the third quarter include Crawford Electric signing a deal for 500,000 square feet at West Ten Business Park in Katy; Yokohama Off-Highway Tires leasing 300,000 square feet at South Belt Central Business Park in the South submarket; and Amazon leasing 300,000 square feet at HITC Logistics Park in Humble,” NAI noted.
Amazon alone has leased more than 4.2 million square feet in Houston since 2019.
Although Hanover has been widely recognized as a multifamily developer since Murry Bowden founded the company 40 years ago, its move into industrial real estate reflects broader market shifts and the growing strategic importance of distribution facilities to mixed-asset developers.
Hanover’s portfolio includes approximately 74,000 apartment units across the country and more than $19 billion in project capitalization. The company’s multifamily presence spans major U.S. metropolitan areas including Atlanta, Austin, Boston, Charlotte, Dallas, Denver, Florida markets, Houston, Los Angeles, Philadelphia, Phoenix, Raleigh, San Diego, San Francisco and Washington, D.C.
Murry Bowden now serves as executive chairman. Brandt Bowden is chief executive officer and Jeb Bowden is chief operating officer.
Dec. 3, 2021 Realty News Report. Copyright 2021.
For more about Texas real estate, see the book Houston 2020: America’s Boom Town – An Extreme Close Up by Ralph Bivins. Available as an ebook and print edition.
File: Hanover Expands Into Warehouse
Image: Hanover residential tower. Courtesy