HOUSTON – (Realty News Report) – The Hanover Co., a Houston firm that has developed high-rise apartment towers in the Galleria area, on Montrose Boulevard and across the nation, is getting into the warehouse business.
As e-commerce emerges into a more powerful force in retailing, demand for warehouses has skyrocketed across the nation. Industrial construction has surged and even with the bubble of new space, the market has been able to digest new distribution buildings.
Hanover has hired a veteran warehouse pro, David Hudson, who led Duke Realty’s Houston operations for many years before doing a stint as president of Griffin Partners Development.
“We are excited to enter the industrial space, and we are thrilled to have David’s leadership in that effort,” said Brandt Bowden, Chief Executive Officer at Hanover Company. “With David’s knowledge and expertise in the industrial sector, and Hanover’s existing development platform, we are excited to begin our work in the sector.”
Based in Houston, Hudson will be responsible for all Hanover Company’s acquisition and development activities in the industrial sector.
“Over the last decade, the industrial sector has evolved and the demand for industrial space has seen dramatic and historic increases,” said Hudson. “Both the Hanover Company and I believe we are in the early stages of a complete transformation of how goods get from the manufacturer’s assembly line to consumer’s living rooms.”
In the third quarter, Houston had 11.6 million SF of warehouse absorption, according to NAI Partners.
Year-to-date, through three quarters, Houston registered 34 million SF of industrial leasing transactions, NAI said. Some 14.7 million SF is under construction, including major projects near the Port of Houston.
“The largest leases in the third quarter include Crawford Electric signing a deal for 500,000 SF . at the West Ten Business Park in Katy; Yokohama Off-Highway Tires leased 300,000 SF at the South Belt Central Business Park in the South submarket; and Amazon also leased 300,000 sq. ft. at the HITC Logistics Park in Humble,” NAI reported.
Amazon alone has leased more than 4.2 million SF. in Houston since 2019.
Even though the opportunities in industrial real estate appear to be promising, it is surprising to see Hanover Co. – a brand identified as a multifamily company since Murry Bowden founded it 40 years ago – move into industrial real estate.
Hanover’s project mix totals 74,000 apartment units across the country and more than $19 billion in project capitalization. Its multifamily market reach includes Atlanta, Austin, Boston, Charlotte, Dallas, Denver, Florida, Houston, Los Angeles, Philadelphia, Phoenix, Raleigh, San Diego, San Francisco, and Washington, D.C.
Murry Bowden now holds the title of executive chairman. Brandt Bowden is CEO. Jeb Bowden is chief operating officer.
Dec, 3, 2021 Realty News Report Copyright 2021
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File: Hanover Expands Into Warehouse
Image: Hanover residential tower. Courtesy