It’s the first industrial project in the Houston area for GTIS, which has offices in San Francisco; Los Angeles; Atlanta; Charlotte, North Carolina; Phoenix; Dallas; Sao Paulo; Paris; and Munich.
In Houston, GTIS — together with Pennsylvania-based homebuilder Toll Brothers Inc. (NYSE: TOL) — is developing Sienna South, a 3,800-acre community with 7,500 single-family homes and commercial space within Houston-based Johnson Development Corp.’s Sienna master-planned community.
GTIS also recently acquired a multifamily project in Spring, the company said, though it did not provide details.
Gaurav Sahay, managing director of industrial and logistics, said he hopes the planned distribution center in Pasadena will jumpstart GTIS’s industrial pipeline in Greater Houston.
“Houston is a very large part of our strategy, given its projected population/job growth, increasing container volumes in the port and proximity to near-shoring opportunities in Mexico,” he said in a statement to the Houston Business Journal. “While we will look for attractive opportunities across the Sunbelt, we expect Houston to be a large focus of growing our industrial footprint.”
GTIS emphasized the location at Beltway 8 and Highway 225, near the Port of Houston, as beneficial for prospective tenants.
As of the first quarter of this year, Houston’s southeast submarket is seeing the most development in the region, with 7.6 million square feet of industrial projects in the pipeline, according to Avison Young.
The submarket’s 1.7 million square feet of industrial projects completed ranks only behind the southwest submarket, which saw deliveries totaling 3.06 million square feet in the first quarter.
At 5.3%, total industrial vacancy in the southeast is below the Houston average of 5.9%. The average asking rent, $6.15 per square foot, is also lower than in Houston overall, where it was $8.15 in the first quarter.
In January, Houston-based Transwestern Development Co. completed Bayport 146 Distribution Center, a 454,600-square-foot, cross-dock industrial space near the Port of Houston’s Bayport Container Terminal in Seabrook.
Houston-based McNair Interests and Pontikes Development started construction in March on two warehouses totaling 630,000 square feet in their 246-acre Port 10 Logistics Center in Baytown.
And last month, Philadelphia-based BG Capital and New Jersey-based FreezPak Logistics broke ground on a 281,849-square-foot cold-storage warehouse in the 15,000-acre TGS Cedar Port Industrial Park with plans to add a 262,000-square-foot warehouse after completion of the first.