2 Companies Lease Space At Houston Ship Channel Amid Rush On Logistics Space
Two companies snapped up over 183K SF at Greens Port Industrial Park at the Houston Ship Channel as supply chain slowdowns and rising costs have companies clamoring for more logistics properties in multimodal industrial parks.
JD Fields & Co., a steel supplier, leased 133K SF, while ZL Chemicals leased 50K SF at the industrial park at 1755 Federal Road. Steve Pastor, of NAI James E. Hanson Global Supply Chain, Ports & Rail Logistics Practice, along with NAI Partners' Gray Gilbert, Chris Haro and Jack Gilbert represented landlord Watco.
JD Fields & Co. and ZL Chemicals want to streamline their distribution through the space, a release stated. Both companies are headquartered in Houston.
“Unfortunately, the challenges facing companies with complex international supply chains continue to be significant and difficult to overcome,” Pastor said in the release. “Over the past 18 months, logistics tasks as simple as offloading cargo from ship to shore have become increasingly time-consuming and expensive at many ports across the nation due to a shortage of chassis and container boxes along with rising labor costs."
The industrial park has over 200K SF for lease currently, with over 60 acres for new builds.
Houston industrial rents this year have soared amid fervent demand for space to tackle the global supply chain crunch. Nearly 40% of freight increases are from the port, Bisnow reported previously.