PASADENA, TX—Petrochemical and consumer product companies are in the market for new space designed with the latest requirements for efficient storage and distribution operations in the Port of Houston area. One project being developed by Clay Development & Construction Inc. hopes to fulfill that need for efficient storage and distribution space.

Clay has broken ground on two spec warehouse/distribution buildings totaling 334,360 square feet in phase two of Energy Commerce Business Park at 607 and 615 E. Sam Houston Parkway South. Phase two is part of the 45-acre deed-restricted business park on Sam Houston Parkway/Beltway 8, just south of Highway 225 in the Port of Houston submarket. The two buildings, a 101,400-square-foot rear-load and a 232,960-square-foot cross-dock facility, are underway with completion in the first quarter of 2018.

“The Port of Houston area is thriving with dramatic expansion in Gulf Coast refinery output, exports of crude oil and plastic pellets, and consumer product distribution to Texas' growing population,” says Robert Clay, president of Clay Development & Construction. “Demand for new construction has surged among companies seeking the latest in building design to optimize operational efficiencies and functionality. Their requirements include wider column spacing, higher clear heights, more trailer parking options and other features to accommodate distribution, packaging, storage and business operations.”

The demand is due to an increase in plastic pellet resin exports from the Port of Houston by some 20% as six new resin production plants open by 2020. Port of Houston inbound and outbound trade, including retail and petrochemical products, increased by 17% from January to April 2017 versus the same period in 2016. Growth is projected to continue based upon population growth and refinery/plastics plants' output and retailer changes in distribution models.

The old method had containers arriving at Port of Houston and then shipped by rail to Dallas, unpacked and goods returned via truck back to Houston stores. The new method has containers unpacked on arrival and shipped from Houston distribution centers to Houston, Austin, San Antonio or South Texas stores.

“Houston in general is seeing a big expansion in distribution,” Clay tells GlobeSt.com. “Although the Northeast is number one, Houston is in the number two spot, with a lot more distribution centered here. Also, population growth, increasingly congested highway transportation and trains are a pain in the butt unless you are a really, really large user. It makes more sense to put goods in a warehouse and truck it to the end user rather than having the middle step.”

Situated on 5.8 acres, the first building of Energy Commerce phase two provides 28-foot clear height, 50- by 52-foot bays and early suppression fast response sprinklers. The second 232,960-square-foot warehouse/distribution cross-dock facility features 32-foot clear height and 50- by 52-foot column spacing with 60-foot loading bays. Energy Commerce Business Park offers East Sam Houston Parkway frontage and easy access to Highways 225 and 146, the primary arteries of the Port area, as well as proximity to Interstate 10 via Beltway 8.

Phase one, completed in 2016, includes two buildings totaling 287,560 square feet. It is 70% leased to DNA Motoring, Safelite, Cintas First Aid & Safety, Applied Industrial Technologies, JGB Enterprises, HMT LLC and Southern Dock Products. In 2015, First Industrial Realty Trust Inc. acquired Energy Commerce Business Park phase one from Clay Development & Construction.

John Simons and Holden Rushing of NAI Partners will handle sales and leasing for Energy Commerce II. Trustmark Bank provides construction financing.

Instant Insights /

Refinery Output, Crude Oil Exports, Pellets Are Drivers

Related Stories

Recommended For You