HOUSTON – The Houston office of Cresa, North America’s largest tenant representation firm, has announced plans for a new 500,000 square-foot industrial class A development in Houston a few miles south of the Texas Medical Center.
Called the Lower Kirby District, the business park is situated on 32.12 acres, is located on the southeast corner of Kirby Drive and Airport Boulevard. An office project is also proposed for the project, which is a couple of miles south of Loop 610.
“We are seeing much more activity in south Houston than in recent years,” says Andrew Jewett, a senior advisor with Cresa Houston who is involved in the deal. “This flurry of development activity is a result of the upward pressure on rental rates in other key industrial submarkets across the city, particularly to the northwest.”
Cresa Houston, and its development partners, is slated to begin construction on Lower Kirby District in the third quarter of 2015. Phase I, which encompasses 181,000 SF and is 60% pre-leased, is expected to deliver in the summer of 2016.
The state-of-the-art industrial facility will feature efficient design for users ranging from 20,000 SF up to 500,000 SF, flexible configurations with 26’ – 32’ clear heights, and ample parking. There is nearly 245,000 SF of rear-load space, as well as 234,000 SF of cross-dock space planned. The developers are currently in discussions with a potential tenant about building an office building on the site, and there is additional land suitable for build-to-suits.
The property is located in the South Highway 35 submarket in Houston, an area that is seeing an increased level of interest.
In the immediate vicinity of the site, large users are planning developments including a new HCC campus, Houston Sports Park complex, and a Methodist sports clinic. Other owners of large tracts in the area include the Houston Livestock Show and Rodeo, the City of Houston and Ferguson, which is the largest wholesale distributor of residential and commercial plumbing supplies.
Cresa said the property has good freeway access and is counter-flow for transport to citywide delivery points.