Keep Heading West
How far west is too far? At Bisnow’s fourth annual industrial summit last week, Clay Development & Construction owner Robert Clay says the answer is changing rapidly. (Don't go too far west though, you'll end up in the same place you are now.) He had land at Pederson, and four years ago people thought it was too far out. But now it’s sold to Weatherford and has lost that reputation. He says BAE’s project in Sealy (on the market) seems silly now, but in a few years it’ll make sense. Robert has 25 projects totaling 1.4M SF underway.
Avison Young principal Josh LaRocca is seeing more importance placed on having residential offerings nearby for industrial product, which is making the far west more attractive than ever. But he’s watching another rapid change in the market: pricing. He says we need to re-educate not just clients but ourselves on what market rates are. He says there is a 50% premium on new product, which can be a huge shock to users leaving obsolete buildings. Josh is marketing 50 acres at 59 and Will Clayton now, which he expects will be developed as a business park. The perk: It’s priced more cheaply than sites right at the airport. (Plus you won't have all those pesky planes ruining your meetings with their rude engine noise.)
Our sponsor Bury has a number of industrial projects underway, including a Rooms to Go distribution center and 12-acre warehouse expansion for Derrick Equipment at IAH. It's also designing a manufacturing facility for SMB Manufacturing in Chambers County and a 12-acre pipe laydown yard in Northeast Houston. It’s also working on three Aldi stores and some office work for BP in the area.
Our sponsor Catamount Constructors is building four warehouses for Republic Liquor across the country. (Above, Rebecca's far right at Soldier Field in November as part of ULI's National Convention.) That includes a 188k SF property in Houston. The buildings are high pile storage for liquor and wine and include a refrigerated component.