HOUSTON—According to research from the Greater Houston Partnership, the region is home to 40% of the nation's annual base petrochemicals manufacturing capacity. Base petrochemicals are the raw materials for producing the plastics and resins eventually made into finished products. In recent years, the refining and processing of oil and gas into chemicals, plastics and other products has helped increase industrial real estate demand, particularly on the east side of Houston and along the Gulf Coast, according to JLL research.
Two transactions drive this point home, one in the form of a lease and the other, an acquisition. Most recently, an Israeli-based household plastics manufacturer, Starplast, signed an 181,540-square-foot industrial lease at Point North located at 8111 FM 1960.
Starplast will use the space to manufacture injection-molded plastics, and for the storage and distribution of finished goods. The facility will also serve as the base of its US manufacturing operations.
JLL's Ryan Fuselier and Travis Secor negotiated the terms on behalf of Starplast. David Hudson of Duke Realty represented the landlord.
“Starplast decided to manufacture in the US in part, due to increased customer demand for US-made goods,” said Fuselier. “They chose Houston in particular, because of the availability of plastic resins and a seasoned labor force with a deep knowledge of the plastics industry.”
Point North 8111 is a 250,660-square-foot industrial building located near the intersection of FM 1960 and US Highway 59, in Houston's north industrial submarket. Features of the property include cross dock configuration, 28-foot clear heights and fully fenced outside storage.
“Houston has seen a steady stream of high demand from the downstream sector and plastics companies in particular will continue to impact market dynamics,” JLL research manager Rachel Alexander, tells GlobeSt.com. “While Houston's construction pipeline has been trending downward, major plastics users are driving much of the current activity in anticipation of petrochemical plants coming online in 2018 along the Gulf Coast.”
The acquisition was on the part of Polymers Packaging & Warehousing Inc., which purchased a 275,000-square-foot warehouse from Aleen Street Associates Ltd. The rail-served building is located at 550 Aleen St. within Houston's 610 Loop. The building provides convenient access to Houston's petrochemical plants and Port Houston by way of Interstates 10 and 610, and Texas State Highway 225.
Based in Houston, Polymers Packaging & Warehousing Inc. is a supplier of multiple types of plastic resins, which it exports worldwide. 550 Aleen will serve as the company's global manufacturing and distribution facility. The building has eight rail doors and is actively served by Union Pacific. Other features of the property include 27-foot clear heights, 44 dock-high doors and a fully fenced truck court.
JLL's Fuselier and Secor negotiated the terms on behalf of the buyer. Bob Berry and Grant Hortenstine of Avison Young represented the seller.
HOUSTON—According to research from the Greater Houston Partnership, the region is home to 40% of the nation's annual base petrochemicals manufacturing capacity. Base petrochemicals are the raw materials for producing the plastics and resins eventually made into finished products. In recent years, the refining and processing of oil and gas into chemicals, plastics and other products has helped increase industrial real estate demand, particularly on the east side of Houston and along the Gulf Coast, according to JLL research.
Two transactions drive this point home, one in the form of a lease and the other, an acquisition. Most recently, an Israeli-based household plastics manufacturer, Starplast, signed an 181,540-square-foot industrial lease at Point North located at 8111 FM 1960.
Starplast will use the space to manufacture injection-molded plastics, and for the storage and distribution of finished goods. The facility will also serve as the base of its US manufacturing operations.
JLL's Ryan Fuselier and Travis Secor negotiated the terms on behalf of Starplast. David Hudson of Duke Realty represented the landlord.
“Starplast decided to manufacture in the US in part, due to increased customer demand for US-made goods,” said Fuselier. “They chose Houston in particular, because of the availability of plastic resins and a seasoned labor force with a deep knowledge of the plastics industry.”
Point North 8111 is a 250,660-square-foot industrial building located near the intersection of FM 1960 and US Highway 59, in Houston's north industrial submarket. Features of the property include cross dock configuration, 28-foot clear heights and fully fenced outside storage.
“Houston has seen a steady stream of high demand from the downstream sector and plastics companies in particular will continue to impact market dynamics,” JLL research manager Rachel Alexander, tells GlobeSt.com. “While Houston's construction pipeline has been trending downward, major plastics users are driving much of the current activity in anticipation of petrochemical plants coming online in 2018 along the Gulf Coast.”
The acquisition was on the part of Polymers Packaging & Warehousing Inc., which purchased a 275,000-square-foot warehouse from Aleen Street Associates Ltd. The rail-served building is located at 550 Aleen St. within Houston's 610 Loop. The building provides convenient access to Houston's petrochemical plants and Port Houston by way of Interstates 10 and 610, and Texas State Highway 225.
Based in Houston, Polymers Packaging & Warehousing Inc. is a supplier of multiple types of plastic resins, which it exports worldwide. 550 Aleen will serve as the company's global manufacturing and distribution facility. The building has eight rail doors and is actively served by Union Pacific. Other features of the property include 27-foot clear heights, 44 dock-high doors and a fully fenced truck court.
JLL's Fuselier and Secor negotiated the terms on behalf of the buyer. Bob Berry and Grant Hortenstine of Avison Young represented the seller.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
