Direct-To-Consumer Business Models are Driving Industrial Demand
There is an increased demand from retailers and wholesalers for industrial and logistics locations near residential density and growth, and an infill location will capture last-mile demand in the Northwest submarket.
HOUSTON—E-commerce continues to exert influence on a national basis and Houston is not immune to that demand. A recent example is another industrial park that is set to spring up in Northwest Houston.
North Texas-based developer Jackson-Shaw has purchased 45 acres in Houston at the intersection of FM 1960 and Bobcat Road to build an industrial business park, Nexus Park NorthWest. At total build-out, the project will have 476,640 square feet of class-A industrial space in four buildings and be able to accommodate tenants from 15,000 square feet to 200,000 square feet.
“The continued expansion of e-commerce and direct-to-consumer business models is driving demand for industrial facilities in Northwest Houston,” said Grant Pearson, vice president of development at Jackson-Shaw. “There is an increased demand from retailers and wholesalers for industrial and logistics locations close to residential density and growth. This in-fill location will serve the regional population growth in Northwest Houston and capture last-mile demand in this submarket.”
The business park has access to Beltway 8, US Highway 249 and US Highway 290.
“Northwest Houston is and always has been the premier submarket in Houston for industrial development and tenant activity. We feel very fortunate to have located a tract of this size in Northwest Houston within two miles of Beltway 8, US Highway 249 and US Highway 290,” said Michael Foreman, director at Cushman & Wakefield.
The land was assembled from multiple landowners and is platted into a single lot. Construction is scheduled to commence this month with substantial completion estimated for December 2020.
“E-commerce businesses will have two large delivery hubs, UPS and FedEx, within close proximity, truly making this the nexus of industrial space in Houston,” adds Beau Kaleel, managing director at Cushman & Wakefield.
Diamond Realty Investments Inc. is the equity partner, Burton Construction is the general contractor, Powers Brown is the project’s architect, Kimley-Horn is the civil engineer and Comerica is the construction financier. Kaleel and Foreman are managing the leasing assignment for the development.
“Nexus Park NorthWest fits into Jackson Shaw’s overall strategy of developing multi-tenant industrial parks in in-fill locations in the Houston market that are able to accommodate a wide range of tenant sizes and uses,” Pearson tells GlobeSt.com.
Houston’s industrial market is in growth mode, coming in at number eight for both demand and supply.
Houston’s net absorption for 2020-2021 is forecast at 12.7 million square feet and supply is forecast at 14.6 million square feet, according to Cushman & Wakefield’s 2020 North American Industrial Outlook.