LAREDO, TX—With a significant lease in its initial building in 2017 and a strong level of interest for the remaining available space, Majestic Realty Co. is moving ahead with plans to develop its next warehouse building at Port Grande. The company's 200,000 square feet of space in building one of the master-planned project represents the largest block of available space in the market.
However, strong market activity and economic conditions are triggering the developer's decision to continue its 100-acre phase I development. In the months ahead, Majestic will break ground on building two, a 423,280-square-foot building that will feature 32-foot ceiling clearance, 120 dock-high doors, four ground-level doors, a large secured truck courtyard, 242 trailer parking spaces and 208 automobile parking spaces.
“We've taken a very close look at local and national market conditions, vacancy and absorption rates, product supply and the success we've had providing large, high-quality, high-cube industrial space that is the best in the market,” said Majestic Realty Co. vice president Kyle Valley. “We're excited about the opportunity to continue the momentum we've started in our park this past year and we strongly believe that now is the time to bring the space to the market and deliver a much-needed product for the larger users.”
Located just east of Interstate 35 with access from Uniroyal and Carriers Drive, Port Grande is 10 miles from commercial border crossings, has immediate access to Union Pacific Intermodal and offers gated and secured buildings. The park can accommodate buildings up to 2 million square feet.
Majestic completed the acquisition of the 2000-acre Port Grande land site from a subsidiary of Mercedes Benz in 2015. Long-term plans call for Majestic to fully redevelop the site with modern warehouse distribution space to support the growing international flow of commerce between Mexico and the United States. Laredo is the nation's third largest customs district with annual US-Mexico trade totaling $274 billion.
“From a macro level, we continue to be extremely bullish on the opportunities for us in this region with trade between the US and Mexico at a heightened level of focus and importance,” Valley tells GlobeSt.com. “While tracking negotiations and what ultimately occurs with NAFTA is important, we are still seeing an increase in both imports and exports between the countries.”
The trade relationship is still flourishing and with a NAFTA settlement, elements of uncertainty will be removed and even stronger trade opportunities ahead with cross-border investments in growth for net exports and imports, Valley explains.
“When looking more closely at the micro level in Laredo, it continues to be the lifeline between the two country's trade and the activity is as robust as ever,” Valley concludes.
Majestic's Port Grande seeks to provide local, national and multi-national users the facilities required to support Mexican trade flow of the nation's number one inland port. The development further expands the company's presence in Laredo where it has constructed, leased and manages more than 1 million square feet of distribution space.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
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.
