By Katherine Feser
Clay Development betting on NE Houston market
Clay Development & Construction is betting on northeast Houston for its next industrial project.
The Houston-based developer will start work Dec. 1 on a 214,300-square-foot speculative distribution center on 11.2 acres at the southeast corner of North Lake Houston Parkway and East Sam Houston Parkway North. The cross-dock distribution building, which could be expanded to 385,000 square feet, will be part of the company’s 45-acre Sheldon Business Park.
“Sheldon Distribution Center I is the only large, new distribution facility available for lease or purchase in this strategic Beltway location between Bush Intercontinental Airport and the Port of Houston,” Clay Development & Construction president Robert Clay said in an announcement. “We are pioneering the underserved northeast market with newly built, next-generation distribution space as we have in other submarkets, such as 288 and the port.”
The property is just south of McCord Development’s 4,000acre Generation Park mixed-use development, which is also drawing industrial users.
The new distribution center will have 32-foot clear-height ceilings, a 135-foot truck court and parking for more than 100 employees. The building will go up next to a 59,200-square-foot manufacturing facility Clay built for architectural metal producer Lichtgitter in 2015.
The project is in an area where housing starts have jumped by 11.5 percent in the last year and is close to a skilled labor pool in the Sheldon Road-Channelview area, Clay said. Housing growth fuels demand for industrial buildings, which house both e-commerce tenants seeking spaces close to their customers to speed delivery times, as well as building materials suppliers.
The building could accommodate up to four tenants, Clay said. Potential tenants include suppliers of products such as plumbing, flooring, electrical or air conditioning.
Most of the new industrial buildings going up in Houston are in the northwest, southeast and north submarkets. Those markets account for 86 percent of the 8.3 million square feet under construction, according to the JLL real estate firm.
Other speculative industrial projects are going up closer to Bush Intercontinental Airport. Houston-based Archway Properties and Ridgeline Property Group of Atlanta are developing a 685,400-square-foot warehouse targeting e-commerce tenants at Park Air 59 at U.S. 59 and Will Clayton Parkway. The project, also being developed before securing tenants, will wrap up about the same time as Sheldon Distribution Center I in the second quarter.
John Ferruzzo, John Simons and Ryan Searle of NAI Partners, along with Charlie Christ of Clay Development & Construction, will handle leasing.
Frost Bank provided construction financing.
Clay Development & Construction will soon start work on a 214,300-square-foot distribution center in Sheldon Business Park.