The site had been particularly appealing to Walgreen's because of its proximity to its other warehouse distribution centers and ample parking area, James E. Foreman, a Cushman and Wakefield of Texas Inc. broker, tells GlobeSt.com. He and Sandra F. Harris have represented the building owner, Bingle Blankenship Ltd., a Sage Interests company in the transaction. Mike Hill of CB Richard Ellis has acted on Walgreen Co.'s behalf.
According to Foreman, the building is relatively new and had been designed for multiple tenants, but Walgreen Co. has opted to lease the entire structure. Walgreen Co., a national retail pharmacy chain based in Deerfield, IL has 347 stores in Texas.
The building sits on eight acres and is a dock high, rear-load distribution warehouse with 24-foot clear heights and an ELO sprinkler system, says Foreman. The building also features multiple dock doors.
Foreman tells GlobeSt.com that the industrial market is strong in Houston these days. "There was some concern a year ago that the market was flattening because of oversupply," he says. But, he adds, the market has "firmed up over the last 12 months." There is, by far, more activity and greater absorption. This year, the trend seems to be that industrial tenants are seeking newer buildings that are tailored for longer trucks. The newer facilities also have more parking and higher clear heights. According to Cushman & Wakefield of Texas statistics, the Houston industrial market had a direct net rental rate of $3.67 per sf as of fourth quarter 2000.
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