First Industrial Nearing 120,000-SF Spec Start

The all-in development cost for the first building is $5.5 million. The just-bought land is located at Sens Road's intersection with Texas 225 and about two miles west of the 1.3-million-sf InterPort Business Park, an 88-acre development that First Industrial and CalSTRS began work on a little more than a year ago. The JV has just completed a 600,000-sf spec building in the InterPort park.

Troy MacMane, regional director for First Industrial's Houston office, tells GlobeSt.com that the eight-acre balance could support a 200,000-sf project. The spec warehouse is slated to deliver in the fourth quarter. The 16-acre park is unnamed at this stage of its development.

MacMane says the steadily increasing tonnage through the Port of Houston is pushing the drive for more land in the southeast sector. "We have a couple of other sites in the port area as well as northwest Houston that we're actively pursuing," he says, adding that First Industrial should close on more land within the next year.

"We continue to be bullish on Houston," MacMane says. "It's a large population center with a large population growth and the oil and gas industry is doing extremely well. The economic outlook is positive and far superior to other cities in the United States."

In an unrelated deal, First Industrial sold a four-building portfolio to an unidentified buyer. MacMane can't discuss the deal, but did say that the package included a 192,379-sf, single-tenant net lease at 8705 City Park Loop on the northeast side and another 100,000 sf in three buildings along Wallisville and Claymoore roads in the far eastern tier.