Houston Answers the Call for More E-Commerce Space

BROOKSHIRE, TX—E-commerce sales could hit $1.5 trillion by 2025, which would increase the demand for industrial real estate to an additional 1 billion square feet, according to JLL. Even before COVID-19 hit, e-commerce sales were increasing at a rapid rate and the pandemic accelerated this trend, further driving the need for additional industrial warehouse space. JLL expects the online shopping trend will continue long after the virus is contained.

Answering the call is Empire West Business Park, a 300-acre industrial development located 30 miles west of Houston. Stream Realty Partners is underway with site infrastructure including detention, roads, wastewater and water that will serve the entire development. Additionally, three speculative distribution buildings are under construction with a spring 2021 delivery date.

“We feel the timing could not be better given our location, the surge in e-commerce related warehouse demand and the Houston region’s continued population growth, which recently eclipsed 7 million people. This growth is leading to a large increase in rooftops in west Houston, which leads to strong consumptive-based demand, and this is what drives warehouse absorption in our market,” said Justin Robinson, partner with Stream’s Houston office. “Empire West is uniquely situated with 5,000 feet of rare Interstate 10 and Highway 90 frontage with a dedicated east/west exit to the site. The first phase of the development will include three speculative buildings totaling 1 million square feet under three roofs. In addition, Stream will provide opportunities for built-to-suit deals and the ability to sell land to corporate end users.”

Empire West provides visibility and distribution reach to Houston and south/central Texas, and is situated directly next to powerful corporate neighbors such as Amazon, Costco, Domino’s, Igloo, Medline and Rooms-to-Go, among others. The project offers users cost efficiencies, and increased delivery and service capabilities. Empire West can offer prospective users economic incentives available via the city of Brookshire and Waller County as well as expedited permitting schedules.

“Having our inventory of spec buildings and shovel-ready land for build-to-suit projects puts us in a really unique position to capture market demand and deliver finished product extremely quickly,” said Matteson Hamilton, managing director and partner with Stream’s Houston office. “Working with the business-friendly municipalities of city of Brookshire and Waller County has further energized our project and feels like a true partnership trying to land new companies and jobs in this area.”

Stream says the project is designed to accommodate the full spectrum of industrial distribution users ranging from e-commerce, consumer goods, local logistics and everything in between. The spec phase is able to accommodate tenants ranging from 45,000 square feet up to 751,000 square feet. Additionally, there is additional land available for user sales or build-to-suit projects.

“The Houston industrial market has seen incredible growth west as users first and foremost are serving the Houston population but by being west in Brookshire, it opens up a regional distribution aspect,” Hamilton tells GlobeSt.com. “The lack of developable land suited for industrial projects outside of a flood plain is increasingly difficult to find especially in the growing west Houston submarket. Within a five-hour drive, distributors will be able to reach over 15 million people and serve other parts of Texas outside of simply Houston. Empire West is already in the path of growth and with Interstate 10 frontage and the ability to have a very flexible offering, land sales, BTS opportunities and leasing speculative buildings, we are able to cast a very wide net when prospecting that covers most users.”

Both Brookshire Waller County are fully behind the project’s success and have business-friendly economic development teams ready to assist with attracting users. It is rare in the Houston market to be able to offer economic incentives such as property and inventory tax abatements but both municipalities are open to discussing these based on particular businesses’ contribution to the area in the form of job creation and investment within the buildings, GlobeSt.com learns.

“The city of Brookshire is business friendly and ready to work with all potential businesses,” said Darrell Branch, mayor of Brookshire.

Rosenberger Construction has been selected as the general contractor for Phase I and the architectural design was completed by Powers Brown Architecture. Engineering partners on the project include BGE Inc., LJB Inc. and Cope Engineering.