DEAL OF THE WEEK
Company sees industrial demand in Pasadena and places its bet
Clay Development & Construction has placed another bet on Houston’s industrial market by proceeding with two more buildings in Pasadena’s Energy Commerce Business Park before landing any tenants.
The Houston-based company has broken ground on the second phase of the park at 607 and 615 E. Sam Houston Parkway South, just south of Texas 225. The project, consisting of a 101,400-squarefoot building and a 232,960-square-foot building on 5.8 acres, will be finished in early 2018.
“There’s no shortage of demand,” said Robert Clay, president of Clay Development & Construction.
“There’s a slight shortage of space.”
The site near the Port of Houston offers access to Interstate 10, about 5 miles north. Clay anticipates attracting companies that support operations at area refineries such as providers of pumps, piping or gaskets. The buildings could also suit the distribution operations of retailers or other companies.
John Simons and Holden Rushing of NAI Partners will handle sales and leasing. Trustmark Bank provided construction financing.
The project is in the southeast submarket, which has a vacancy rate of 4.8 percent, according to NAI Partners. That compares with 5.4 percent for the northwest, the Houston region’s largest submarket, and 5.7 percent for the area overall.
Clay Development & Construction sold the first phase of the park to First Industrial Realty Trust in 2015. The final phase of the 45-acre park will likely be a build-to-suit project for a single company, Clay said.
Clay Development & Construction has completed more than 40 spec industrial buildings since 2005. In one of the larger projects, home furnishings giant Ikea agreed to occupy 1 million square feet in two new buildings in Baytown’s Cedar Port Distribution Park.
“We expected to land a tenant like Ikea,” Clay said. “We honestly didn’t expect to do it as quickly as we did.”