Market briefs
Work starts on Large Industrial Project
In Austin, Austin-based Buchanan Capital Partners reported a joint venture with Houston-based Hanover Co. to develop a sizable spec industrial campus in North Houston.
In North Airport Logistics Center will bring a 476,000, SF cross-dock industrial building with over three acres of outside storage to a growing submarket for logistics, manufacturing, and distribution operations. Located about a mile north of George Bush Intercontinental Airport along Rayford Road and FM 1960, the site offers access to Interstate 45, Highway 59, Beltway 8, and the Grand Parkway.
“This partnership reflects our continued focus on working with experienced, best-in-class development partners that deliver superior product at a competitive cost basis in markets with strong industrial fundamentals,” said Keith Buchanan, founder of Buchanan Capital Partners. “North Airport is well positioned near IAH and major transportation corridors, and the project’s design aligns with the operational needs of today’s large-scale industrial users in a market where the majority of new institutional product includes multiple buildings designed for several tenants.”
The project adds to 20 million SF of industrial space under construction across the Houston market in the first quarter as developers continue to attract prospective tenants, as stated by CBRE.
Coming up in northeast Houston, Eli Lilly plans to build a 1 million-SF pharmaceutical manufacturing facility in Generation Park.
Houston industrial demand has remained robust, with net absorption totaling 16 million SF in the last four quarters, as stated by CBRE.
Leasing activity reached 8 million SF areawide in the first quarter, as stated by CBRE. The North submarket accounted for nearly 1.7 million SF, including a 601,400-SF renewal by Emser Tile at Pinto Business Park.
Hanover, which develops multifamily and industrial properties nationwide, will oversee the development of North Airport Logistics Center. Faron Wiley of CBRE will lead the leasing effort.
“We are proud to have BCP as a trusted partner on this project,” said James Melody, Development Partner at Hanover. “This development underscores our shared commitment to developing high-quality industrial facilities in strategic locations. North Airport Logistics Center will offer modern specifications, an efficient site layout, and over 3.50 acres of outside storage area to complement its access to Greater Houston’s population and major transportation infrastructure.”
Hanover launched its industrial development platform in late 2021. The company has six industrial projects under construction totaling nearly 2.3 million and a total capitalization of $341 million. An additional $1.71 billion in projects are in the development pipeline.
