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Houston's 7 Largest Industrial Deals Of The Year

Houston's industrial market is a powerhouse.

Driven by the region's growing population, demand for distribution centers and manufacturing facilities is keeping the pipeline full, with 4.1M SF of new inventory added in the third quarter alone. The robust pipeline is still posting absorption numbers in the black. 

Houston's 7 Largest Industrial Deals Of The Year
North Houston, George Bush Intercontinental Airport

This year, Houston absorbed 5.2M SF, according to research from Colliers. The majority of positive net absorption is happening in the Northwest and Southwest corridor, where Houston's industrial sector has taken root. On an annual basis, Houston’s average industrial vacancy increased from 5.7% in Q3 2018 to 6.6% in Q3 2019.

With the help of NAI, let's look at the deals that ate up the most space in Houston's ravenous industrial sector. 

Home Depot, 770K SF, Grand National Park, Hwy 290/Tomball 

Houston's 7 Largest Industrial Deals Of The Year

Home Depot inked the largest deal of the year, a 20-year lease for a 770K SF warehouse and distribution center anchoring Hines' Grand National Park. The deal and forthcoming warehouse are part of Home Depot's effort to overhaul its supply chain on a national level, looking to achieve same- or next-day deliveries for its customers. The deal is yet another sign of Houston's emergence as a distribution hub.

Rooms To Go, 373K SF, Mason Ranch, Northwest Outliers

Rooms To Go

Rooms To Go's 373K SF renewal took the second spot on our list. The warehouse lease serves to support Rooms To Go's 1.25M SF showroom and supercenter nearby in Brookshire. Several furniture and appliance retailers have pursued similar strategies, using available land and easy access to build a combination showroom and distribution center. 

Moody Compress, 345K SF, 411 Brisbane, South Hwy 35

Cotton industry warehouse specialists Moody Compress continues to invest and grow in Houston, signing a deal for an additional 345K SF of industrial space at the rail-served business park on Houston's south side. The company is headquartered in Galveston, where it handles rail and truck deliveries with container loading and unloading capabilities. 

Plantgistix, 337K SF, AmeriPort Industrial Park, Baytown

Plastic resins are big business on the Gulf, and business is booming. That's why Houston-based resin logistics company Plantgistix is investing $24M in Baytown at the rail-served AmeriPort Industrial Park. The new facility will be Plantgistix's third, opening a year after its second facility, as the company works to keep up with the growing plastics industry.  

Builders First Source, 284K SF, Claymoore Business Park, Northwest Inner Loop

Houston's 7 Largest Industrial Deals Of The Year

The Fortune 500 building material supplier is also growing its presence in Houston, with another facility at 11711 Clay Road. The deal will help Builders First Source keep with up with the growing demand from Houston's housing market, driven by master-planned communities on Houston's west side. 

COE Distributing, 251K SF, Highland Grove Industrial Park, Northwest Outliers

The office furniture outfit struck a deal to lease a portion of a former Randall's distribution center, encompassing 700K SF total. The property was split into two separate buildings when it changed hands last year. The location is COE's first in the Lone Star State.

Amazon, 238K SF, West Ten Business Park, Northwest Outliers

Amazon Warehouse

Amazon has made its mark on Houston: the e-commerce giant already has expanded operations at West Ten Business Park, which has become a hub of distribution. The city of Katy has benefited from the business parks running along Interstate 10. Amazon, Pepperl+Fuchs, Bel Furniture and other business at West Ten Business Park have also been a boon for the city's commercial tax base.

CORRECTION, Dec. 12, 6:00PM EST: The story has been updated to reflect that Moody Compress moved into Gulf Wind International's former location.