SUGAR LAND, TX—Transwestern Development Co., in a joint venture with Diamond Realty Investments, has acquired a 20.83-acre site at the intersection of West Dairy Ashford and Airport Boulevard. The firm plans to develop a two-building warehouse/distribution property totaling 326,792 square feet.
“This site presents an opportunity to develop high-quality industrial product in a proven area with limited land supply and favorable tax rates,” said Ben Newell, partner in Transwestern’s national logistics group. “Industrial users are seeking modern space with higher clear heights, ESFR sprinkler systems and larger truck courts to significantly improve operating efficiencies. Our project will have a distinct advantage by being one of the few newly constructed buildings in Sugar Land Business Park.”
Plans for the project called Sugar Land Crossroads include two buildings designed for tenants ranging from 28,000 square feet to the full capacity of 326,792 square feet. The buildings will offer 32-foot clear heights, and share trailer parking spaces and a 255-foot truck court.
Building 1 will feature a front-load configuration with 126,814 square feet and 141 car parking spaces. With a cross-dock configuration, Building 2 will include 199,978 square feet and 198 car parking spaces. Sugar Land Business Park includes 1,000 acres with 79 buildings totaling 7.5 million square feet. At the end of 2019, the vacancy rate was 3.4% or 240 basis points below the submarket average.
Population in the Southwest submarket where the site is located is expanding rapidly in the suburbs of Sugar Land, Missouri City and Richmond/Rosenberg. This growth is driving demand from industrial users, evidenced by similar speculative projects experiencing substantial leasing within six months of completion.
Fueled by strong population growth and elevated port activity, Houston is well-positioned for continued gains within both the economic base and the industrial sector amid the COVID-19 crisis. The market is on pace to more than double the average amount of industrial space delivered from 2012 to 2018. Annualized absorption in 2019 totaled 10.6 million square feet, according to Transwestern research.
“Despite being hit with a double whammy of coronavirus and low energy prices, Houston’s industrial market remains well-positioned for long-term growth due to the increasing population base, rapidly expanding e-commerce network and strong foreign trade,” Newell tells GlobeSt.com. “Without e-commerce, the impact of coronavirus to the US economy would be far greater, and the industrial market will continue to provide much-needed support to that sector.”