Panattoni Developing Massive Warehouse – Houston, TX

Friday, August 23rd 2019

Massive industrial warehouse under construction southeast of Houston

The Class A industrial warehouse, named Bayport South, spans 642,994 square feet — or nearly 15 acres — at 10575 Red Bluff Road in Pasadena. It’s expected to be complete in the first quarter of 2020, according to a press release from JLL’s Houston office.

JLL’s Richard Quarles, Jarret Venghaus and Mark Nicholas will handle leasing.

Houston-based Method Architecture designed the building. The cross-dock facility measures 1,344 feet by 478 feet, according to a marketing brochure. It will feature 36-foot clear height, 56-foot-by-50-foot column spacing, 150 trailer storage parking spaces, 180 truck courts, four overhead doors with ramps and more than 330 car parking spaces, per the release.

The entire site spans 41.56 acres, per the marketing brochure. It will be foreign-trade-zone-capable and is about 3 miles from Bayport Container Terminal and about 9 miles from Barbours Cut Container Terminal, per the release.

Even though Houston’s industrial building boom and relatively low absorption rates recently have caused some to question whether the supply of available space has outstripped tenant demand, Houston’s southeast industrial submarket is still strong, JLL’s press release contends. The submarket’s vacancy remains “well below market averages and achieved net absorption of 1.4 million square feet, by far the highest of any submarket,” in the second quarter, JLL said in the release.

“Bayport South represents an outstanding opportunity to continue our objective to develop strategically located projects in Houston’s key industrial submarkets,” Todd King, partner at Panattoni Development, said in JLL’s release. “The nearby Port of Houston container facilities, the Ship Channel, and the petrochemical complex are all critical national infrastructure components that make this area a great long-term investment.”

Panattoni’s previous Houston-area projects have turned into some of the area’s most high-profile industrial sites in recent years. The company purchased land near Willowbrook Mall in 2013 for a large business park development and built part of it before the oil downturn of 2014. As a result of the market change, Panattoni agreed to sell the land to UPS, which opened its 258,000-square-foot package center on the site in 2018. Panattoni also developed the 155,400-square-foot Amazon Prime Now facility at 11720 N. Gessner Road and later sold it to San Francisco-based Bentall Kennedy. Method Architecture also designed the UPS and Amazon Prime Now facilities.
– Senior web editor, Houston Business Journal