HOUSTON-With 103 acres in hand in two submarkets, Duke Realty is planning to fire up construction within five months on 421,200 sf of spec industrial space. Based on current construction costs, $20 million to $25 million could be spent to develop the initial product.
David Hudson, Duke's vice president of leasing and development, tells GlobeSt.com that ground will break in November on a 262,800-sf structure in the 420-acre Westland Business Park on the city's west side. In Q1 2007, a 158,400-sf building will get under way in the 200-acre Houston Intercontinental Trade Center on the northwest side. Both are designed as light manufacturing and distribution space.
Hudson says both land sites, mapped out for nearly 1.6 million sf, will take five to seven years to build out. The delivered buildings will be a mix of spec and build-to-suits. "We're working on a couple of build-to-suit deals right now on both properties, but right now, those first buildings will be spec," Hudson says. The Westland project will deliver in July 2007 and the Houston Intercontinental Trade Center will come on line later next year.
Powers Brown Architecture in Houston is the architect of record for both buildings. The general contractor has not been selected.
To get the development sites, Duke acquired 51 acres from the Texas General Land Office in Westland Business Park and 52 acres from local seller, Intercontinental Trade Center LP. Gray Gilbert and John Simmons from CB Richard Ellis's Houston office represented the state in its sale while John M. Talhelm and Kevin Erck with Cushman & Wakefield of Texas Inc. in Houston brokered the Intercontinental Trade Center deal.
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