West Houston Area Along Interstate 10 Continues to See Rapid Growth
Marissa Luck | CoStar News
December 9, 2021 A prominent Houston development firm has launched its first industrial project in Katy as the west Houston area continues to attract industrial demand.
Triten Real Estate unveiled plans this week for a 350,000-square-foot warehouse on a 25-acre site at Pederson Road. Called Pederson Logistics Center, the site is less than 1,000 feet from Interstate 10 and has immediate access from the Pederson Road exit. The site is near several national and global corporate industrial hubs for Igloo, Amazon, Costco, Medline, Goya Foods and others.
Triten plans to break ground on the project in the first quarter on a speculative basis, meaning without any tenants committed to the space. The firm expects the project to appeal to bulk logistics warehouse tenants. CBRE's Jason Dillee and Nathan Wynne are in charge of leasing the facility for Triten, according to the developer's website.
“Coming off the heels from selling three of our industrial warehouse portfolios, we are thrilled to add a new development to our Houston portfolio and are confident in this project’s ability to meet market demands and provide tenants with advantages and savings that can’t be found at other nearby new construction,” said Will Hedges, managing director at Triten, in a statement.
The site offers connections to city of Katy utilities that Triten said can provide cost savings for tenants compared to sites that connect to a municipal utility district.
Triten is joining an area that has been a hotbed of industrial development in recent years as tenants flock to new space near Katy's growing population. Within the northwest outliers industrial market tracked by CoStar, construction activity has jumped in the past year to 3.7 million square feet underway, showing developers aren’t slowing down their plans even as about 2.7 million square feet of new construction has delivered in the past 12 months, according to CoStar data.
One of the biggest contributors of that new growth is Stream Realty’s Empire West project, which delivered 1 million square feet earlier this year. Earlier this fall, Stream also officially broke ground on a 2.3 million-square-foot expansion of the 300-acre industrial park. Other large additions in the submarket in the past couple of years include Clay Development’s 1.3 million-square-foot facility for Medline and Duke Realty’s development of Amazon’s roughly 806,000-square-foot sortation center.