JACKSON, MS-Citing continued leasing success in two Texas markets, EastGroup Properties Inc. executives say they’re planning to start two developments, totaling $50 million, in the fourth quarter and early 2009. The REIT’s plans, economy permitting, call for a construction start on World Houston 30 and Alamo Ridge, a 41-acre project in San Antonio.

David H. Hoster II, EastGroup’s president and CEO, says World Houston 30 will be a spec front-park, rear-load in the 1.9-million-sf World Houston International Business Center at the junction of Vickery Drive and World Houston Parkway. “We have almost no vacancy left in that type of product there,” says Hoster during EastGroup’s earnings call. “We have 14% vacancy in World Houston 24. Everything else with that prototype is completely leased up.” He adds that it made sense to build a spec structure, given the environment and demand for space at World Houston.

Plans for Alamo Ridge on Culebra Road and Loop 410 in San Antonio is not, however, quite so clear cut. During Q3, the company sold 41 acres of the property, leaving about 30 acres for its use. “We haven’t determined if we’ll break ground on Alamo Ridge fourth quarter of this year or early next year,” Hoster says.

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