"We have strong preliminary interest from users in the arearight now for the building that's now going up. Depending on thesuccess there, the developers will consider the second phase," KyleValentine, co-managing partner for Stream Realty Partner LP'sHouston office, tells GlobeSt.com. He says the next building willbe a twin and break ground based on market conditions. HardyDistribution Center is rising on a 31-acre tract at theintersection of Interstate 45 and US Hwy. 59.

The joint venture acquired the land in third quarter 2007. It isin the 290-acre Central Green Business Park, which is three milesfrom George Bush Intercontinental Airport and part of a strongindustrial submarket. "This project has unprecedented access tothoroughfares around northern parts of Houston, which is criticalas it relates to distribution," Valentine says.

The project also is adding warehouse space to a submarket withhigh demand and limited product. Grubb & Ellis Co.'s latestmarket report the far northern tier's 24.7-million-sf industrialinventory has a 7.8% vacancy or 1.9 million sf of empty space.