A spec industrial business park for midsize tenants is on the way to the underserved southwest Houston submarket. Dubbed Independence Business Park, the 145K SF site will target oil- and gas-related companies servicing the petrochemical industry.

Midstream and downstream firms are pushing demand for light manufacturing space between 17K SF and 27K SF, Finial Group President and CEO Keith Bilski told Bisnow. Finial Group is developing Independence Business Park with partner Senterra.

Vacancy for this property type and size within the submarket stands at about 5%.

"While it is true, as a whole, it can be risky to build speculative industrial in Houston, when you have a submarket like this where there are so little supply and strong demand, that is what gave us the confidence," he said. "The market is ripe for this type of development."

Finial and Senterra acquired an 18.95-acre site on McHard Road, close to Beltway 8, Fort Bend Toll Road and State Highway 288, in October. The project will include seven light industrial and office buildings, built out in four conservative phases. Phase 1 will include two industrial buildings — 17K SF and 19K SF — and is expected to completed in June.

Leasing interest has been strong out of the gate with the team in negotiations with two oil-related companies to occupy the buildings, Bilski said.

Independence Business Park will be about 10% office space, 10-ton crane ready and have grade-level doors. Build-to-suit options are available, including a 3-acre tract reserved for a build-to-suit or retail center on McHard Road, which is widening from two lanes to four lanes with a turning lane. The road construction is expected to be wrapped up prior to Phase 1 delivery.

Finding large land tracts outside of the 500-year flood plain in the southwest market has been a struggle, Bilski said. The scarcity has slowed industrial development compared to the north and northeast submarkets, where the majority of the new industrial development is happening.

The site is unique because it is outside of the 500-year flood plain and has access to city utilities, Bilski said. It took over a year to secure the purchase of the land.

"There isn't a whole lot of great available sites left down there anymore," he said. "It is a constraint on available land that has driven limited supply down there."

Finial Group, a Houston-based full-service real estate firm, and Senterra, a private investment holdings firm, are longtime partners. Previous investment deals include Park Row Tech Center, a 42K SF flex-space building in the Energy Corridor, and College Park Village, a 22K SF, Class-A retail center.