Millions of Warehouse SF a Must for Rising E-commerce Sales
Demand is not only from e-commerce, but also for oil patch and construction firms seeking to serve the growing 16 million population within 200 miles of Houston as well as the global energy industry.
HOUSTON—For every $1 billion increase in e-commerce sales, an estimated 1.25 million square feet of warehouse space is needed to keep up with demand, according to a national CBRE report. As a result, national e-commerce-generated warehouse demand could grow by an additional 191.2 million square feet from 2018 to 2020.
Here in Houston, the demand is not only from e-commerce, but also from oil patch and construction firms seeking to serve the growing 16 million population within 200 miles of the metro as well as the global energy industry. Clay Development & Construction Inc. is responding to this continued demand by recently breaking ground on the 524,528-square-foot Kennedy Greens Distribution Center I.
This development is located on 29.24 acres along JFK Boulevard at Lauder Road in the North Houston submarket. The site allows for an additional 500,000-square-foot expansion.
The cross-dock distribution facility will have 36-foot clear-height ceilings, 60-foot speed bays, 107 9-by-10-foot dock-high doors and four drive-in ramps with 14- by 16-foot overhead doors. The project will have 130-foot truck courts, up to 300 employee parking spots and the option of 130 trailer parking spots when it is complete in the fourth quarter of 2019.
“Today’s distribution demands require clear ceiling heights of 32 to 36 feet, clear loading/unloading space in 60- to 70-foot speed bays and plenty of trailer parking,” Charlie Christ, director of development at Clay Development & Construction tells GlobeSt.com. “Also, easy truck access in and out of the park and proximity to major highways are critical to any distribution operation. The top priority for distribution space is uncongested access in urban locations. Houston’s supply of well-positioned distribution sites is shrinking. Beyond automated storage systems and robots, delivery time is still crucial. Clay’s projects are situated with direct access to freeways, airports and sea terminals.”
This is Clay’s fourth new spec distribution building since July 2018, one each in the Port of Houston, west, northeast and now, north industrial areas. These projects typically have interiors covering more than 10 acres. Including Kennedy Greens Distribution Center I, Clay currently has 1.8 million square feet under construction in four spec distribution buildings in the Houston area.
“We are building spec distribution centers in every major industrial market in the city. Our current projects typically have 10-plus-acre interiors. In total, they could house 30 football fields. Such massive distribution centers are in demand for e-commerce retailers, logistics and oil field services companies,” says Robert Clay, president of Clay Development & Construction. “With road, rail and air access, the north submarket is particularly attractive for its proximity to supply chains as well as to end users. 60% of Houston’s largest industrial buildings are under construction in the airport/north corridor.”
Joseph Smith, Billy Gold and Faron Wiley of CBRE, in addition to Clay’s Christ, will handle leasing of Kennedy Greens Distribution Center I. Construction financing is by Trustmark Bank.
The new building is part of the 145-acre Kennedy Greens South Business Park. Located south of North Sam Houston Parkway East/Beltway 8 and west of the Eastex Freeway/US Highway 59, Kennedy Greens South was acquired by Clay in 2013. The business park is 10 minutes from Bush Intercontinental Airport, five minutes from Beltway 8 and three minutes from the Eastex Freeway. Companies operating in Kennedy Greens South include MEI Rigging and Crating, and TRUaire.
In February 2019, Clay began construction on a 20,000-square-foot design/build project for Texas Installs in Kennedy Greens North. Begun in 2008, Kennedy Greens North Business Park, a 186-acre Clay development immediately north of Kennedy Greens South on JFK Boulevard, is 95% complete. Among the companies in Kennedy Greens North are Halliburton Heathrow, IMI Zimmermann & Jansen, Alliance Supply Management, Woodgrain Distribution, Cummins, Enerflow, Gaffney-Kroese Supply Corporation, Clover International, Precision Drilling, Gorrondona Engineering Services and Special Piping Materials.
Kennedy Greens South is a professionally managed and deed-restricted development with a regional water detention program and an ESFR fire sprinkler system.