By Florian Martin
Original Post from Houston Business Journal
A new industrial park has been completed and is ready for tenants in Brookshire.
Westside 10 Business Park is a 167,120-square-foot warehouse building developed by Birmingham, Alabama-based real estate investment firm Growth Capital Partners and Houston-based Phelan-Bennett Development.
It is located on 9.75 acres at 814 FM 1489, just south of Interstate 10, and includes 3,800 square feet of office space. The warehouse has 38 dock doors, 12 trailer parking spaces, a 60-foot speed bay, two 12-by-14-foot overhead doors with ramps and 149 car parking spots.
Growth Capital Partners manages the property. Robert McGee and Taylor Schmidt of Lee & Associates’ Houston office are in charge of marketing.
Houston-based Corvus Construction finished the building in early January, McGee said, and several interested parties have already toured it.
“There’s not a lot of competition in that market in this size range,” he said. “(It’s) probably one of the only buildings that has office space built out currently.”
McGee expects to secure a tenant, or possibly two, for the facility within the next three months. The net asking rent is 55 cents per square foot per month, though that could change depending on the market, he said.
Gross asking rates for Class A warehouse increased by 5.3% in the fourth quarter of 2022 to 79 cents per square foot per month, according to CBRE. That’s a 17.9% increase year over year. CBRE researchers expect rents to continue to climb this year due to heightened demand and lack of move-in-ready space.
The Houston area saw its largest industrial absorption on record last year, with 30.3 million square feet of industrial space absorbed.
The Brookshire area, in particular, has seen strong industrial growth in recent years.
Last summer, Dallas-based Stream Realty Partners completed the second phase of its 300-acre Empire Business Park and has since signed several tenants, most notably Austin-based Tesla Inc. (Nasdaq: TSLA) for a 1.04 million-square-foot warehouse in the fall.
“There’s available labor in that area here in Waller County,” McGee said. “We use tax incentives out there as well. For tenants, there’s additional incentives depending on the size range of those tenants. And (it’s) also a short trucking route to Austin and San Antonio markets, and you can service the Houston area as well.”
The submarket along I-10 roughly between the Grand Parkway and the Brazos River has 6.1 million square feet of industrial developments under construction, according to CBRE.
Westside 10 is GCP’s first industrial development in the Houston area. The company is also developing Fort Bend Logistics Center at the southern end of Fondren Road and the Fort Bend Parkway outside Missouri City. Colliers is marketing that property.
GCP is funding these projects via its GCP Fund II, which has been focused on acquiring and developing bulk distribution warehouses across the Sunbelt. The company has set a goal of aggregating a $1 billion portfolio. For its second fund, GCP has expanded its target market outside of the Southeast to include Texas, Utah and Colorado.
Westside 10 is the first of six developments for which GCP has partnered with Phelan-Bennett, GCP said.