TGS Cedar Port Industrial Park signs largest rail-served industrial lease of 2025

April 29, 2025

An unnamed tenant has signed the Houston area's largest rail-served industrial lease of the year at TGS Cedar Port Industrial Park, according to Partners Real Estate.

The lease is for the entire 496,421-square-foot DC 2 distribution center, which TGS Cedar Port Partners LP delivered in the first quarter of 2023. The company said it was waiting to sign a single tenant.

The lease was signed in February, with Partners Real Estate’s John Simons, Gray Gilbert and Chris Haro representing the landlord. At this time, the tenant does not want to be known, Partners said, but the firm did not say if or when that might change. Partners did not respond to most Houston Business Journal questions before deadline.

DC 2 is on just under 27 acres at 4407 E. Grand Parkway S. outside Baytown, across FM 1405 from the Home Depot distribution center and across the Grand Parkway from Walmart’s warehouses.

The property is served by Union Pacific and BNSF. It has 36-foot clear height, an 8-inch minimum slab, LED warehouse lighting, ESFR sprinkler system, 185-foot truck court, and 219 car and 78 trailer parking spots.

The property flyer also mentions the potential to expand the property by about 900,000 square feet plus 200 trailer and 180 car parking spots.

“We are thrilled to welcome our newest tenant to TGS Cedar Port Industrial Park,” James Scott, president of TGS Cedar Port Partners, said in a statement. “This company has a world-class reputation that we believe fits nicely among the brands located within Cedar Port, and we hope to see their business flourish for the benefit of our community and region.”

Cedar Port, considered the largest rail-served industrial park in the United States, last year expanded its storage capacity by 900 railcars to more than 5,500 and is working to add another 1,000 railcar spaces, Scott said. Cedar Port interchanged over 100,000 railcars for more than 50 customers in 2024, he added.

Before the DC 2 lease, the largest rail-served industrial lease so far this year in Greater Houston was a 103,950-square-foot renewal by Alfa Used Clothing at 8605 Citypark Loop in the Citypark East Industrial Park, according to CoStar.

TGS Cedar Port Partners plans to break ground soon on DC 5, a 609,000-square-foot distribution center that can be configured as a rail-served or cross-dock facility and that can be expanded to more than 900,000 square feet.

The industrial park’s 150,000-square-foot DC 3 at 6944 Nita Way and 1.2 million-square-foot DC 4 at 7505 Fisher Road are also available for lease and ready for immediate occupancy, Partners Real Estate said.

DC 3 is a dual-rail-served facility with expansion potential up to more than 600,000 square feet. DC 4 is a cross-dock warehouse with 8,236 square feet of office space, 40-foot clear height, 8-inch minimum slab and more than 1,000 car and trailer spaces. It can be expanded to more than 2 million square feet.

The 15,000-acre TGS Cedar Port Industrial Park has 25 million square feet of industrial and manufacturing warehouses, 3.8 million square feet of which are owned by TGS Cedar Port Partners. Some other users include Niagara Bottling, Floor & Décor and Ikea, whose two warehouses were recently bought by Atlanta-based real estate investment company MDH Partners. 

About 10,500 acres are available for sale, lease and build-to-suit developments on sites ranging from 5 to more than 1,500 acres.