Insight

Deal of the Week: Bayou Bend Business Park fills up

January 21, 2017

CME Wire and Cable has leased the final space in the Bayou Bend Business Park, a two-building development in Houston's emerging southwest industrial market.

Stream Realty, in partnership with Thackeray Partners, broke ground at 8520 South Sam Houston Parkway West in 2015. It subsequently signed deals with Niagara Bottling for 207,000 square feet, Goodman Manufacturing for 30,000 square feet and American Furniture Rentals for 38,000 square feet.

The 102,780-square-foot lease with CME brings the project, which consists of a 310,000-square-foot, cross-dock building and a 68,000-square-foot, front-load building, to full occupancy.

Matteson Hamilton of Stream represented the landlord, while Bucky Winfield of Cresa Partners represented the tenant.

Northwest Houston, home to about a third of space in the local industrial market, has long been the submarket of choice for distribution companies that want to be near households that use the products they handle, Hamilton said. That market is tight, with a vacancy rate of 3.8 percent, so developers have been building warehouses in southwest Houston, which is not much farther away from a western intersection that's being called the "center" of Houston from a residential standpoint.

"We track the center of the population of Houston just outside of I-10 and the Beltway," Hamilton said.

"With that in mind, southwest provides a great logical alternative to northwest Houston."

The vacancy rate is 6.7 percent in southwest Houston, compared with 5.3 percent for the Houston area overall.

Other developers are taking note of the need for space on the southwest side.

Trammell Crow Co. and Artis REIT are developing the Park 8Ninety business park at U.S. 90A and Beltway 8.

Hines is developing Beltway Southwest at Beltway 8 and the Fort Bend Tollway.

Crow Holdings Industrial is building Stafford Grove at West Airport Boulevard and Murphy in Stafford.

Conor Commercial Real Estate and USAA Real Estate Co. are building Gateway Southwest at Beltway 8 and U.S. 90 in Missouri City.