LA PORTE, TX-A need to facilitate storage and distribution of pipe and valves led Ferguson Enterprises Inc. to sign a four-year lease for industrial space at Port Crossing Commerce Center. Ferguson Enterprises, one of the largest distributors of plumbing pipes, valves and fittings in North America, has taken down 206,296 square feet formally occupied by Frontier Logistics.

According to Peter B. Harmon, executive vice president of ML Realty Partners says the Virginia-headquartered tenant liked the building’s close proximity to the Houston Port Authority’s Barbours Cut and Bayport terminals. ML Realty Partners and National Property Holdings are Port Crossing Commerce Center's developers and owners.

Harmon tells GlobeSt.com that Ferguson Enterprises plans to bring product through the Barbours Cut terminal, warehouse it, then distribute it to clients throughout the U.S. Financial terms were not disclosed, though space is being quoted at $.29 per sqare foot, triple net.

The lease means approximately 100,000 square feet of the 412,000-square-foot building at 1701 S. 16^th St. is vacant. The other tenant in the building is Overland Distribution. Michael J. Taetz, Gary A. Mabray and Jason Dillee of Colliers International represented Port Crossing Commerce Center while John Nicholson of Transwestern represented Ferguson Enterprises.

ML Realty and National Property Holdings launched construction on the 300-acre Port Crossing Commerce Center in 2006 and, to date, have built 1.2 million square feet of approximately 3.3 million square feet planned. Harmon says that, except for the 100,000 square feet available, everything else is full. “We’re looking at possibly launching another building next year, but we need to see how things work out going forward,” he says.

Things might be going better than expected, especially in Houston’s southeast submarket. Houston hasn’t been immune to the economic ups and downs of the past several years, but has weathered them better than other parts of the country. “The market, in general, has picked up,” Harmon adds. “The southeast submarket has had a great run of late.”