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Industrial Strength: 158 Warehouses Under Construction in Texas

by Realty News ReportAugust 18, 2015
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Rendering of Avera's Park161 distribution project in Dallas.
Rendering of Avera’s Park161 distribution project in Dallas.

HOUSTON – Texas is in the midst of a warehouse boom. CBRE Research reports 158 large industrial buildings were under construction in the state during the second quarter of 2015.

Dallas, a major retail distribution hub, leads the way with 14 million square feet of industrial space under construction, CBRE reported. Houston, riding the wave of a petrochemical growth, has 10.2 million square feet underway.

Across the state, Texas had 26.5 million square feet of space under construction in the second quarter and it was 36 percent pre-leased.

Strong job growth and population gains fuel the industrial real estate market in the Lone Star State, which has 1.4 billion square feet of warehouse, distribution and industrial space.

The construction totals do not include the recently completed Amazon e-commerce distribution facility, a 1.2 million square-foot project where 450 are employed and 350 more will be hired, CBRE reported.

Along the Texas border, there is a rekindling of activity in the Maquiladora and automotive sector in McAllen and El Paso. “The recent manufacturing activity upsurge in Mexico, largely driven by substantial investments in automotive manufacturing, has trickled positive demand to Texas’ industrial border markets. These markets play a larger role in global supply chain operations as their ports of entry account for more than 81 percent of annual trade with Mexico, the third largest trading partner with the U.S.,” CBRE reported.

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