Industrial Market Outlook: Q&A with Trey Odom of Avera Cos
Trey Odom
HOUSTON – (Realty News Report) – Houston’s industrial market is performing strongly and remains one of the top sectors in commercial real estate. Robust activity at the Port of Houston, the continuing growth of e-commerce, and a recovering energy sector are all fueling industrial construction and leasing. To understand whether this momentum will continue and which forces are most influential, Realty News Report spoke with H.T. “Trey” Odom, president and CEO of Houston-based Avera Companies. Avera is a prominent commercial real estate developer and investor active in industrial development, construction, and property investment across Houston, Texas, and the country. The company continues to pursue new projects in the Port of Houston area, including a 60-acre PTRA rail-served site on Greens Bayou and a 135-acre mixed commercial, retail, and light industrial project along Bay Area Boulevard in La Porte.
Realty News Report: Your firm has been developing several projects on the east side—around Pasadena and near Barbours Cut and Bayport terminals. What makes these locations appealing for development?
Trey Odom: Houston’s diverse industrial base has helped dampen the volatility typical of traditional economic cycles, and many major facilities are concentrated in the Southeast Houston submarket. Petrochemical plants, refineries, and related cracker facilities require institutional, rail-served buildings that are close not only to the Port and its terminals but also to one another. Since we began seeking sites near the Port several years ago, demand for these properties has increased markedly. We have been strategic in selecting developer-friendly parcels—sites located within jurisdictions that welcome positive development—and tenant-friendly locations that keep tax burdens and operating expenses manageable. Many cities and counties surrounding the Port also offer incentives that attract new and expanding tenants.
Realty News Report: How will the growth of e-commerce affect Houston’s commercial real estate market?
Trey Odom: E-commerce has influenced Houston’s real estate sector somewhat more slowly than initially anticipated, but the city should increasingly align with other major distribution hubs as the regional population grows steadily. Over time, rising demand for warehouse and distribution space tied to online retail will drive more development and leasing activity.
Realty News Report: Is the Panama Canal expansion already influencing Houston’s market?
Trey Odom: Yes. We’re seeing increased demand in submarkets with Port access, and the Panama Canal expansion is a clear contributor. Port Houston is moving forward with about $1.5 billion in projects to deepen the Ship Channel and upgrade facilities in response to the Canal’s expansion. Those improvements will allow larger ships and higher cargo volumes, and, along with Houston’s proximity to midstream petroleum assets and industrial facilities, are likely to sustain growth and investment in the Port area.
Realty News Report: With oil prices and rig counts rising compared with a few years ago, is the energy sector affecting Houston’s real estate?
Trey Odom: Industrial real estate has shown resilience despite oil price swings, largely because the petrochemical construction boom driven by fracking and low natural gas prices sustained demand. With rising energy prices, we are now seeing oil and gas companies, along with their suppliers and service providers, resume capital investments in equipment and facilities, which positively affects real estate demand.
Realty News Report: Can you comment on the expansion of chemical plants and increased production of plastic pellets—how has that altered Houston’s commercial real estate landscape?
Trey Odom: U.S. exports of plastics are expected to grow significantly, and investment in chemical plants helped soften the impact of job reductions in the energy sector. Houston is well positioned for continued expansion in petrochemical production, especially with new LNG terminals being added locally and along the Gulf Coast. That industrial investment supports demand for specialized facilities and distribution infrastructure tied to chemical and plastics manufacturing.
Realty News Report: Looking ahead 10 to 20 years, what do you see for Houston’s long-term growth?
Trey Odom: I expect steady growth for Houston, driven in part by a competitive cost of doing business. The substantial capital being invested in existing and new chemical plants underscores the long-term commitment of these companies to the region. That level of investment indicates they intend to remain and expand here for the foreseeable future, supporting continued economic and real estate growth.
