Thank you for sharing!

Your article was successfully shared with the contacts you provided.

HOUSTON-Alamo Crossing Commerce Center, a 1.3 million-sf industrial park currently under construction in northwest Houston, has now been granted Freeport Tax Exemption status by Cy-Fair Independent School District. CB Richard Ellis Strategic Partners is Alamo Crossing’s developer.

Brendan Lynch of the CB Richard Ellis’ leasing team for the project says, “This is a huge coup for potential tenants of ACCC. With the newly granted Freeport exemption from the Cy-Fair School District, tenants of Alamo Crossing could realize anywhere from a 25% to 40% reduction in occupancy costs.” In July 1999, the City of Houston granted the same exemption. Thus, the park now qualifies for double Freeport status. The exemption eliminates taxes on goods acquired and imported into Texas that are shipped out of state within 175 days. The combined school and city exemptions equal $2.36 per $100 valuation of inventory.

The Texas legislature adopted the exemption, which may apply to cities, counties, school districts and other local taxing entities in 1989 as a tax incentive. According to CB Richard Ellis, a tenant, for example, with $10 million of Freeport inventory would save about $230,000 annually. “Clearly for a major distribution tenant, there is the potential for millions of dollars in cost savings over the term of the lease,” says Jim Stark, another CB Richard Ellis broker for Alamo Crossing. Tenants Compaq, Toshiba International, Bindley-Western Drug Co. and Silver Eagle Distributors along with others have about $300 million to $600 million in inventory in the Freeport-designated area.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information

GlobeSt. NET LEASE Awards 2021Event

These awards honor the industry's most influential and knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.