Northwest Houston is getting yet another massive logistics facility.
Two Dallas-based firms have broken ground on a two-building industrial development along Highway 290, according to the Houston Business Journal.
Urban District 290 is scheduled to open next year and will be Urban Logistics Realty’s first venture in the Houston area. The Dallas developer partnered with Crow Holdings Capital, another Dallas firm, for the project.
The 238,000 square feet of warehouse space is right off the highway on Bingle Road, which lies within Beltway 8. It will also include a 64,800-square-foot, side-load facility and parking for 30 trailers. As an infill site, it offers more direct access to Houston’s urban core than facilities on the outskirts of town.
“This site represents the most urban and infill location in northwest Houston currently under development, and it fits squarely into our investment strategy,” said Adam Herrin, a partner at Urban Logistics Realty. “We’re big believers in the Houston market, and we’ll be investing here for years to come.”
Inbound company migration propelled by population growth and port expansion drove Houston’s industrial net absorption to record-breaking levels in the second quarter of 2022, according to HBJ. During this time, the Houston metro’s industrial pipeline grew for the fifth consecutive quarter, reaching 23.4 million square feet. The Northwest Houston submarket was particularly active within the region, having 7.6 million square feet of industrial space underway in the second quarter.
After Dallas-Fort Worth, Houston is the second-largest industrial construction market in the Southwest. Logistical logjams plaguing California’s ports has made Houston’s port an attractive alternative, driving growth in its industrial market. Warehouses in Houston and Harris County saw their value increase an average of 19 percent since 2021.
Both Houston and Dallas-Fort Worth are two of the hottest markets for industrial development in the country, together accounting for more than 20 percent of the square footage under construction nationwide.
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— Maddy Sperling