Upon its completion by October of this year, Portwall IV at 531 Portwall St. will join Carson Cos.' Portwall Distribution Centers I, II and III, which are nearby. Carson Cos. acquired Portwall I in October 2006, and broke ground on Portwall II and III in early 2008.

"Portwall II and III were finished about a year ago, and that project is 100% leased," explains Daniel Zoch, Texas' managing director for Carson Cos. He tells GlobeSt.com that a very tight market for distribution space in the near east submarket prompted Carson Cos. to build on a speculative basis. "We believe in this submarket, and think the building will be successful," he adds. Research reports put industrial vacancies in this submarket at between 3% and 3.4%. The area-wide vacancy is just under 8%.

Another reason for the likely success of Portwall IV, Zoch explains, is the lack of modern distribution buildings inside the Interstate 610 loop. "There's some third-generation space available, but no first-generation," he remarks. "Many tenants today need ESFR, but the nearest available ESFR buildings are in the southeast market, about 17 miles away."

Carson Cos. is developing the project on an all-cash basis; Zoch acknowledges obtaining a construction loan for a speculative distribution center right now would have been difficult. Rosenberger Construction is the general contractor, while Powers Brown Architecture is the designer.

Once Portwall IV is built and online, that'll finish Carson Cos.' Portwall Center project. The company will continue the distribution centers, Zoch says.

In the meantime, Carson Cos. is in the market for more acquisitions. "We're looking for land to hold for future development, as well as existing facilities," Zoch comments. "We'll build or buy, whichever's cheaper."