Clay Development purchased the land along Cunningham Road, between Tanner and West Little York roads, from Cohen Landco Ltd., a local investment group, for an undisclosed price. Land prices range from $2 per sf to $3 per sf. Marc Drumwright of Southwest Realty Advisors represented Cohen Landco while Robert Clay of Clay Development represented his firm.
The business park is Houston-based Clay Development's fifth project in the northwest sector and will be the company's first speculative development. "Normally we would pre-sell or pre-lease the space and not build on spec," Clay says, "but there is so much demand in this market."
Buildings in Cunningham Business Park will be a hybrid metal building with a tilt-wall exterior, 24-foot eaves and 18-foot hook heights for cranes. Clay estimates that the buildings will sell for about $50 per sf or lease for $6 per sf.
Clay tells GlobeSt.com that Northwest Houston is the hottest market in the Bayou City, particularly for single-tenant industrial buildings that are crane-served. He estimates as much as 60% of the industrial demand in the area requires crane-served buildings. "All companies that are oil-field related need cranes," Clay explains. "You just can't find crane-served distribution and multi-tenant industrial buildings."
Clay Development owns 2.5 million sf of industrial space in the Houston market and just recently completed Tanner Freeport Park, a 55-acre park situated near Cunningham Business Park. The 300,000-sf, nine-building development is 100% sold and leased, Clay says. Cunningham Business Park is scheduled for completion in June 2005.
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