BAYTOWN, TX—Houston-based Pontikes Development is set to break ground on Port 10 Logistics Center, a rail-served class-A industrial development that will encompass 3 million square feet of warehouse and distribution space on Interstate 10, near the Houston Ship Channel. The first phase of the project is scheduled to deliver in the third quarter of 2018.

Situated on 246 acres, the development will be located at the southeast corner of Thompson Road and Interstate 10. The park's direct connection to Interstate 10, access to class 1 rail service and proximity to Port Houston make it an effective distribution location for reaching regional metro areas, national population centers on both coasts and international markets. Port 10 is also proximate to chemical processing plants and refineries in the area. Moreover, tenants will have convenient access to a wide range of retail amenities and other businesses along Interstate 10.

“We're pleased to see a development of this caliber come to Baytown,” said the mayor Stephen DonCarlos. “This development will serve much of the commerce that is already taking place in Baytown as well as support the region's growing position as a strategic distribution and logistics hub.”

JLL's John Talhelm and Kevin Erck will lead the leasing and marketing efforts on behalf of Pontikes Development.

“Port 10 Logistics Center is being developed with logistics in mind,” said Erck. “It will offer over half a mile of frontage on I-10, rail service, benefits of a Foreign Trade Zone and is situated proximate to Port Houston's two container terminals as well as two other deep-water terminals. All of these factors combine to create a one-of-a-kind multimodal logistics destination that will support anything from retail distribution to plastics resins packaging.”

Features of the industrial park will include on-site rail storage, ample trailer storage, and 32 and 36-foot clear heights. The first phase of Port 10 Logistics Center will include a 485,000-square-foot cross dock building and a 295,000-square-foot cross dock building. Subsequent stages of the park will also include front load and rail-served space.

“When you look at the market fundamentals, the city's industrial market is doing well. Vacancy has been hovering at or below 5% and we're seeing more and more of these large requirements in the market. Companies are beginning to recognize Houston is an area you can build these regional-type distribution centers,” Talhelm tells GlobeSt.com. “Our MSA population is over 6.5 million and growing, and there is a tremendous amount of commerce happening at the Port. All of this is good news for Houston and will help the city to be seen as the growing distribution hub that it is.”

Upon completion, Port 10 Logistics Center will encompass a total of 3 million square feet, 2 million square feet of which will be directly rail served. The development will offer approximately 450 on-site railcar spots and direct access to Union Pacific's Coady railyard, which can provide additional storage for high-volume rail users. The industrial park's rail system is designed to support the largest containers being shipped today and the biggest rail users in the area.

“These types of multimodal projects are welcomed at Port Houston as they strengthen our ability to move goods through our terminals to their final destination,” said Roger Guenther, executive director of Port Houston.

Port 10 Logistics Center embodies a growing trend in Houston's industrial market toward class-A big-box warehouse space suited for the distribution of goods to consumers. Due to expansion in the consumer goods sector brought on by consistent population growth, Houston has recorded a notable rise in the number of big-box deliveries to market. According to JLL research, a record seven warehouse and distribution facilities greater than 400,000 square feet will be delivered this year. With access to multimodal shipping, ports and distribution networks, Houston should continue evolving into more of a big-box market in the future.

“Port 10 will be one of the largest multimodal developments to take place in the Houston metropolitan region in many years,” said Talhelm. “It will fill a need of the distribution community to have a state-of-the-art facility, located on a major freeway that can support all modes of transportation for both import and export opportunities. Port 10's strategic location will provide companies the ability to access nearly half of Texas' population within a four- to five-hour drive.”

JLL's John Talhelm and Kevin Erck will lead the leasing and marketing efforts on behalf of Pontikes Development.

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Big Box Site Has Access to Half of Texas Population

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