Tri-Supply Expanding With 92,000-SF Pact

HOUSTON-A millwork company from Beaumont, TX has taken down 92,000 sf in the northwest far submarket. Tri-Supply Co., signing a long-term lease, will take possession of its new space in December.

According to Jude Filippone, vice president with Transwestern's Houston office, the new tenant is paying a market-rate lease. The market rates range from $4.90 per sf to $6.80 per sf, triple net, while the quoted rate for the 216,000-sf building at 7100 Business Park is $4.50 per sf, triple net.

"We're building out about 5,000 sf of office for the tenants," adds Filippone, who represented Dallas-based 7100 Business Park Inc. in lease negotiations. Alexander Reilly and William "Bo" Pettit of Boyd Commercial LLC in Houston were the tenant representatives.

Filippone tells GlobeSt.com that Tri-Supply is expanding west into the Houston market and was looking for ideal space in the northwest submarket to manufacture and distribute doors, molding, lighting and appliances to homebuilders in the region. The company ended up at 7100 Business Park because of its accessibility and visibility to Beltway 8, Filippone says, adding that the lease pushes occupancy for the seven-year-old building to 85%.

The building is at US Hwy. 290 and Beltway 8, which is considered the heart of the northwest distribution submarket. Filippone says there has been good activity on the remaining space and says there could be another lease made before the end of the year.

Tri-Supply is entering an industrial market that, according to area experts and statistics, is exploding. Grubb & Ellis Co.'s third-quarter market report shows a 7.5% vacancy or 5.6 million sf in the 77.1-million-sf inventory. There is 1.6 million sf is under construction. Transwestern's Outlook Q3 report pegs vacancy at 5.8% or 2.1 million sf, inventory at 36.8 million sf and,327 sf under construction.