Lineage Logistics has signed a full-building lease for Houston ColdPort, a newly-constructed 315,111-square-foot cold storage warehousing facility located at 7500 Uvalde Rd., in Houston, Texas. Lineage closed the lease as part of a partnership with the building’s owner and developer, Boomerang Interests, and manager CenterSquare Investment Management.
Construction of Houston ColdPort was completed this year and was financed through a $37 million loan, according to CommercialEdge data. The facility was designed and constructed by ARCO Design/Build and features a 50-foot clear height, a 60-foot deep cold storage dock space, 38 docking positions and a 200-foot deep truck court with 57 parking spaces. The facility’s placement, adjacent to Texas’ Highway 8, within 15 miles of downtown Houston, as well as several interstate trucking routes, gives it quick shipping, storage and fulfillment access for the entire Houston metro.
Houston’s industrial heft
Houston remains a stable and promising market for industrial leasing and construction. The city struggles with an 8.6 percent vacancy rate, one of the highest in the nation amidst numerous hiccups, such as an uneven recovery from the pandemic, a truck driver shortage and supply chain challenges, according to an August 2022 report from CommercialEdge. Nonetheless, the city enjoys 18.5 million square feet in its construction pipeline, as well as having seen $3 billion in sales year-to-date, the third highest volume in the nation, data from the same report shows.
Furthermore, the city’s net absorption rate of 14.3 million square feet over the first half of the year is the largest the market has ever experienced, according to a JLL report for the second quarter of the year. Overall, all data points toward a market in recovery, despite destabilizing headwinds.
Recent Houston-area industrial transactions include Nuveen’s acquisition of The Pines Business Park, a 281,481-square-foot industrial campus, as well as Mirae Asset Global Investments’ $190 million purchase of a 2.3 million-square-foot mixed-use distribution center in the nearby town of Katy.
