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Houston developer to break ground on 350,000 SF spec facility in Baytown

July 26, 2018

Companies needing distribution space in Houston will soon have another option in a land-constrained submarket.

Houston-based Clay Development and Construction, which delivered just under 1 million square feet in new development in 2016, will soon break ground on a 349,440-square-foot spec distribution center at Fisher Road and the Grand Parkway in Baytown, according to a Clay spokesperson. The facility will break ground in October and deliver in summer 2019.

The distribution center, dubbed Cedar Port IV, will have access to Union Pacific and BNSF railroads. Clay Development will build and design the property; though a cost associated with the project wasn't disclosed, San Antonio-based Frost Bank is leading its financing.

Among other things, Clay Development is known for having developed the 1 million-square-foot distribution centers that The Netherlands-based Ikea leased in 2016. The Houston Business Journal named that lease a finalist for a Deal of the Year in the commercial real estate category.

Earlier this year, Clay Development broke ground on the Offices at North Post Oak, a seven-building project on 7.5 acres at Interstate 10 and the 610 Loop, just northwest of the Memorial area. The first two office properties will stand at two stories and contain 16,100 square feet of office space.

Despite experiencing a rare instance of negative absorption in the second quarter of 2018, Houston's industrial market has remained strong in recent years. Construction activity is up 80.5 percent year over year, per JLL research, and 76.8 percent of industrial developments broke ground speculatively in the second quarter.


By Cara Smith, Houston Business Journal