Majestic Realty signed a pre-lease agreement with a single user for building two shown in the background.
LAREDO, TX—Weeks away from completion of the region's largest speculative industrial building, Majestic Realty Co. signed a pre-lease agreement with a single user for the entire 423,280-square-foot building two at its Port Grande Logistics Port. Source Logistics, a logistics and supply chain provider to a wide range of retail and e-commerce companies, will more than double its current footprint in Port Grande this month, taking full occupancy in the region's largest speculative construction on record.
Trace Elrod of Newmark Knight Frank represented the tenant and Majestic Realty Co. was represented by Carlo Molano of Forum Commercial Real Estate. Terms of the long-term lease agreement were not disclosed.
The lease agreement, which continues a record-setting streak of spec space absorption along the US Mexico border, opens up 200,000 square feet in the 366,000-square-foot building one. And, according to company officials, strong interest is already surfacing thanks to the continued, healthy bilateral trade environment and demand from a growing list of national and international companies looking to establish or grow. Port Grande is the nation's number one inland trade port and the number two US trade port with more than $235 billion in total trade in 2018.
"We continue to see growing interest in this region and demand for modern, large class-A warehouse space with building features that did not exist in this market before," said Majestic Realty Co. senior vice president Kyle Valley. "We've doubled down on our positive forecast for this market and we're seeing a wide range of tenants now seriously looking at Laredo as a key to their long-term success. Our goal is to continue to invest in Port Grande and maintain its position as the premiere logistics park solution in this region."
In addition, Majestic Realty is nearing completion on a 74,482-square-foot warehouse at Port Grande that will offer 28-foot ceiling clearance, a 185-foot truck courtyard and direct access to Union Pacific Intermodal. Building five at Port Grande located at 1313 Carriers Dr. will be ready for occupancy in January 2020.
"This will be the first tenant to expand in Port Grande and they are over-doubling their size. This is all northbound import traffic for a fortune 100 company," Valley tells GlobeSt.com. "With news of USMCA having bipartisan support, we are going to see the flood gates open back up on user demand in the region. And, we are close to finalizing our Phase II plans which will be larger in scale than Phase I. We have immediate plans to double down on speculative construction in Port Grande."
Supporting Majestic Realty Co.'s long-term investment in the region, the Texas Department of Transportation recently approved plans and budgeting for road improvement projects in and around Port Grande. With planning and design elements underway, work is scheduled to begin in 2020 on $110 million worth of road and freeway improvements, as well as enhancements to transportation infrastructure both on and along Interstate 35 at the Port Grande mile marker. These projects are designed to add to and improve overall function within and around Port Grande, and strengthen overall regional connectivity.
Located just east of Interstate 35 with access from Uniroyal and Carriers Drive, Port Grande is 10 miles from the Port of Laredo commercial border crossings where approximately 60% of all trade between US and Mexico occurs, according to company officials. Port Grande provides immediate access to Union Pacific Intermodal, and offers gated and secured buildings up to 2 million square feet in size, allowing local, national and multi-national users the facilities required to support US Mexican trade flow.
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.
