There is a lack of distribution warehouse space for lease within a 20 mile radius of the container terminals (namely Bayport and Barbours Cut) in far East Houston/La Porte. Despite the long awaited Panama Canal widening and continued record exports from the Port of Houston, developers seem to have forgotten the small to midrange industrial dock high user.
Numerous large scale, big box distribution facilities have been recently been completed in the area. So why a shortage of smaller dock high buildings and/or lease spaces? Bulk distribution buildings do not easily allow for demising of lease space under 30,000 to 40,000 SF due to the building depths. Additionally, it is difficult to justify smaller, shallower spec buildings as construction costs are generally higher without economy of scale.
Where do these businesses find suitable lease space? In many cases, not in Houston or the surrounding areas. They may opt for other Gulf coast ports in Louisiana, Florida and even Brownsville, TX. If they want to stay in Houston and still locate with relative proximity to the Port, then they have a better chance to find available lease space near Loop 610 and I-10 East. Wallisville Rd., Turning Basin, Market Street, East Freeway and McCarty Rd all have a dense concentration of small to midrange warehouse spaces offered for lease. This submarket also has some of the lowest rental rates, for comparable space, in the Houston area.
If your company needs industrial lease space, we can help.
Eric Hughes – Broker/Partner
Office (713) 461-4750 x 2
Mobile (281) 236-9553
6750 W. Loop South, Suite 675
Bellaire, TX 77401