BAYTOWN, Texas – Clay Development & Construction will develop 1.5 million square feet of distribution space on 80 acres it just purchased in the Cedar Port Industrial Park in Baytown, east of Houston.
The surge in plastic production at Gulf Coast chemical plants is driving the demand for more industrial space in the area, says Houston developer Robert Clay, president of Clay Development & Construction.
“The economic drivers in this market are the low price of natural gas, steady growth in the petrochemical and plastics industries, and the demand for newly built, rail-served, accessible distribution space near the Ship Channel,” Clay says. “With the recent Panama Canal and Port of Houston expansions, both global and national companies are looking for large warehouse/distribution space in this market.”
Clay purchased the 80 acres in the Cedar Port, an 11,000-acre project that is considered the fifth largest industrial park in the world.
Clay bought the land, located Borusan Road and FM 1405, from TGS Cedar Port Partners. John Simons and John Feruzzo of NAI Houston represented TGS in the land sale.
Clay will build three rail-served, dock-high distribution facilities on the site. Construction on the first building, Cedar Port Distribution, Phase I at 4830 Borusan Road, will begin in January 2016. Completion is scheduled for August 2016. Charlie Christ of Clay Development & Construction will handle sales and leasing.
“The Borusan Road location offers both rail and public barge dock access in addition to immediate access to the Highway 99, Highway 146, Interstate 10 and the port,” Clay says
Cedar Port Distribution, Phase I will be a 501,020-square-foot building on 26.4 acres. The interior will feature 32-foot clear-height ceilings, 50-by 52-foot column spacings and 60-foot loading bays. Cedar Port Distribution Park provides a regional water detention program and ESFR fire sprinkler system and is located in the deed-restricted Cedar Port Industrial Park, which has an extensive rail network.
Of all sectors of Houston real estate, the industrial market is a standout.
The industrial vacancy rate in Houston is 4.8 percent and over 8 million square feet was been absorbed in 2015, according to a third-quarter report NAI Partners.
Southeast Houston will be one of the stars of the Houston industrial market in 2016, Robert Clay said at a recent NAI forecast event at the Houston Country Club.
“The southeast market will go gangbusters,” Clay says, “because of plastics.”
Dec. 30, 2015
— By Ralph Bivins, Editor of Realty News Report