South Texas Sees Largest Industrial Lease in Two Decades

The industrial market in South Texas is breaking records. In a milestone transaction, international trade and logistics services company The JAMCO Group has signed a 500,000-square-foot, long-term lease to occupy a former Mattel facility in Laredo, Texas, owned by industrial power player Majestic Realty Co. The deal is the largest lease transaction in the market in two decades, since 1999.

The new lease transaction triples JAMCO’s current footprint. The firm views Laredo as a key logistics market in the US, and they aren’t alone. Laredo is severely supply constrained with limited options for quality space in any size range. As a result, there was strong completion for this property from users across the country. “There is a complete supply constrain for any new, modern bulk space. Anything that does come online usually gets gobbled up pretty quickly,” Kyle Valley, SVP at Majestic Realty, tells GlobeSt.com. “We had Fortune 500 companies looking at the space, but this group came through with a great plan.”