Manufacturing Prompts Hines to Develop Industrial, Market briefs

In Houston, Hines is developing six industrial projects totaling more than 2.3 million SF in Houston, California’s Fremont-Newark manufacturing corridor, Phoenix, and Florida’s Space Coast.

Three Cities Identified as Hot Spots: Houston, Phoenix and San Jose

Hines’ recent Mapping the U.S. Manufacturing Buildout research report Identified Houston, Phoenix and San Jose as the nation’s three top markets that will needing new industrial buildings because of strong manufacturing activity.

Three Projects in Hines’ Houston Near-Term Pipeline

In Houston, Hines has three new industrial buildings in the pipeline. Laura Denkler of Hines is leading the efforts.

Aero Logistics Center: A 270,900-SF project near Hobby Airport. It is set to include a 173,700-SF cross-dock building and a 97,200-SF front-load. Work start in Q3 2026. CBRE will market the property for sale or lease.

Mills 249 Logistics: Located at 8887 Mills Road in northwest Houston, Mills 249 Logistics is a 200,200-SF, front-load building expected to be completed in September. Partners is marketing it for sale or lease.

Lone Star Logistics Park Phase II: Phase II of Lone Star Logistics Park will add 476,063 SF to the infill campus at 2304 Reed Road with delivery expected this fall. Park will contain 1.1 million SF on completion. Cushman & Wakefield is leasing the property. In June, there were unconfirmed reports that Tesla would occupy space there.

“Advanced manufacturing is one of the structural forces reshaping real estate demand across the U.S., but that opportunity may not be evenly distributed,” said Steve Luthman, Global Head of Real Estate at Hines. “We believe the strongest markets will be those where long-term capital investment is reinforced by skilled labor, infrastructure, supply chains and established innovation ecosystems. These developments reflect our strategy of identifying those markets early and applying our local expertise and operating capabilities to help meet the real estate needs created by their long-term growth potential.”

Houston developer Robert Clay of Clay Development & Construction recently laid out plans to develop spec manufacturing buildings to meet growing demand.

“In 2025, 30 percent of new business announcements in Houston came from manufacturing companies,” said Clay. “Among them are firms producing transformers, batteries and alternative energy supplies, as well as traditional Houston oil field services and light manufacturing concerns.”

In July, Clay’s organization reported it had started work on 650,000 SF of spec industrial in the Houston area.

Clay said at least seven notable solar energy real estate deals occurred in Houston in the last two years, including firms that manufacture solar panels. In addition, several new Mexican manufacturers of steel products have opened new facilities in Houston recently.