(Read more on the industrial market.)
PASADENA, TX-Two deals totaling 204,000 sf of office/warehouse space have taken occupancy to 72% in the first phase of the one-year-old Bayport North Distribution Center. A pending 87,500-sf expansion by an existing tenant will up that figure to 87% shortly.
In the completed deals, Catalytic Distillation Technologies, a Houston-based developer and licenser of refining and petrochemical processes, took 60,000 sf, while Memphis-based Mallory Alexander International Logistics LLC claimed 144,000 sf at 4330 Underwood Rd. Walter Menuet, vice president of marketing for the Vantage Cos. in Houston, represented the owner, the Carson Cos. of Newport Beach, CA, in the transactions.
Although Menuet wouldn't give the specific lease rates, he reports the deals came in very close to the monthly asking rate of 34 cents per sf, triple net. "The market has picked up this year, more so than last year," Menuet says. "Demand is good right now. The activity level is being driven by growth at the port and the petrochemical industry. All our tenants are related to either the port or petrochemicals."
The two-building, 563,500-sf project at Fairmont Parkway and Underwood Road was completed in July 2006. They were built by Vantage and sold two weeks after completion to Carson, a REIT with about six million sf of industrial space in Southern California. Vantage has the leasing and management contract. The rail-served buildings feature 26-foot clear heights, 130-foot truck courts, 50-foot by 50-foot column spacing, tiltwall construction and EFSR sprinkler systems.
According to Menuet, Carson just broke ground on the project's second phase. Scheduled for completion early next year, the second phase will have two cross-dock buildings, one with 600,000 sf and the other with 172,000 sf.
Menuet anticipates that existing tenants will take some of the space. "The businesses that we have, once they get in, seem to grow their businesses pretty rapidly," he says. "The new people told us one of the attractions of the project is the opportunity to expand as they grow."
Greg Egan of Leasesquarefeet.com in Houston represented Catalytic Distillation. Jim Vann of Houston-based Moody Rambin Industrial Realty represented Mallory, which is making its entry into the Houston market.
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