Two tenants have already signed leases prior to Parc Air 59 reaching substantial completion.
HUMBLE, TX—Parc Air 59, a 320,000-square-foot urban industrial development, is the first industrial component within Houston-based Archway Properties' 111-acre mixed-use business park which includes retail, medical office and other uses. Developer Jackson-Shaw says 50% of the three-building industrial development has been leased prior to completion.
This is no surprise considering that the vacancy rate for industrial space in the Houston metro has remained below 6% for 30 consecutive quarters or since fourth quarter 2011, according to a report by NAI Partners. Although, the record-breaking levels of new construction have been pushing the vacancy rate up slightly, ending first quarter 2019 at 5.9%, up 30 basis points quarter-over-quarter and an increase of 80 basis points year-over-year, says NAI's report.
“Prior to the construction of Parc Air 59, there was a lack of quality class-A industrial space along the US Highway 59 corridor,” said Grant Pearson, vice president of development at Jackson-Shaw. “This is an important development that will satisfy the demand in Northeast Houston, as is already evidenced by the exceptional leasing activity the project has experienced thus far.”
Prior to reaching substantial completion at the end of the first quarter of 2019, the urban industrial development had already signed leases with two major tenants. An independent producer of petroleum-based specialty products will occupy 120,000 square feet in Building 1. Paul Davis Restoration, which provides services to clean up and repair damage to residential and commercial properties due to water, fire, mold, storm or other disasters, is already occupying 36,000 square feet in Building 3.
Situated on 20 acres, Parc Air 59 is positioned at the Will Clayton Parkway entrance to the George Bush Intercontinental Airport. Humble has very competitive operating expenses due to the city's low tax rate.
“This key location offers tenants unparalleled access to the airport, Beltway 8 and US 59,” said Nathan Wynne, director at Cushman & Wakefield. “Coupled with the ability to cater to a wide variety of industrial users and provide the immediate area with much-needed industrial space, it is unsurprising that half of the building space has been leased out before its completion.”
Building 1, a 160,000-square-foot cross-dock building, is located at 18870 Eastex Fwy. 59. Buildings 2 and 3, located at 18860 Eastex Fwy. 59 and 18850 Eastex Fwy. 59, are both 80,000-square-foot single-load buildings. Each includes 28-foot and 32-foot clear heights, 130 foot and 210 foot shared truck courts, ESFR sprinklers and abundant trailer parking.
Thackeray Partners is the project's equity partner, Arch-Con Corporation is the general contractor for the project, Powers Brown is the project's architect, Kimley-Horn is the civil engineering firm and Comerica is construction financier. Jason Dillee, Beau Kaleel, Allison Bergman and Wynne of Cushman & Wakefield are managing the leasing assignment for the development.
Demand has been brisk for the remainder of the space, says Pearson.
“We are targeting industrial tenants with a need for 20,000 square feet to 160,000 square feet of space that desire highway visibility and easy access to US Highway 59 and Beltway 8,” Pearson tells GlobeSt.com. “The demand that we have seen so far at the project has been from regional distribution type and wholesale tenants, and additionally from service business tenants, such as Paul Davis Restoration.”
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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.
