Industrial Leasing Demand Continues to Drive Development in NW Houston
Cabot intends for its new spec development to respond to strong leasing demand in the area for infill class AA buildings.
HOUSTON—Industrial leasing demand continues apace in northwest Houston, with private equity firm Cabot Properties announcing this week that it has acquired 13 acres in the region for a speculative industrial development.
Cabot has tapped Stream Realty partners to provide leasing and management services for the project, which will be known as Axis Northwest Distribution Center. Preliminary plans for the project include a 201,240-square foot front-load distribution building to be constructed on the site located at the southeast corner of Fallbook Drive and Windfern Road, just inside the Sam Houston Parkway.
The Northwestern Houston industrial submarket accounts for over 100 million square feet of institutional product and is the largest industrial submarket in Houston, according to Stream Realty Partners. Cabot intends for Axis to respond to strong leasing demand in the area for infill class AA buildings.
“Over the last six months, over two million square feet of leases have been executed within the submarket, with many more soon to transact,” the companies said in a joint statement announcing the project.
“The northwest submarket continues to outperform in Houston,” Matteson Hamilton, Managing Director and Partner at Stream, said. ”When you factor in the numerous deals in the market soon to absorb new developments coupled with a severe lack of new construction within the area, Axis is positioned for incredible success. Timing could not be better for this new development.”
The Houston industrial market netted $1.93 billion in new transactions in the first half of the year, according to Real Capital Analytics, and clocked in fourth among major US metros for industrial deals. The city also saw more than 1 million square feet in industrial completions in the second quarter.