New 326,792 SF warehouse coming to Sugar Land, Texas
March 25, 2020
Houston – Transwestern Development Co. (TDC®), in a joint venture with Diamond Realty Investments, announces it has acquired a 20.83-acre site at the intersection of West Dairy Ashford and Airport Boulevard in Sugar Land, Texas. The firm plans to develop a two-building warehouse/distribution property totaling 326,792 square feet.
“This site presents an opportunity to develop high-quality industrial product in a proven area with limited land supply and favorable tax rates,” said Ben Newell, Partner in Transwestern’s National Logistics Group. “Industrial users are seeking modern space with higher clear heights, ESFR sprinkler systems, and larger truck courts to significantly improve operating efficiencies. Our project will have a distinct advantage by being one of the few newly constructed buildings in Sugar Land Business Park.”
Plans for the project, called Sugar Land Crossroads, include two buildings designed for tenants ranging from 28,000 square feet to the full capacity of 326,792 square feet. The buildings will offer 32-foot clear heights and share trailer parking spaces and a 255-foot truck court. Building 1 will feature a front-load configuration with 126,814 square feet and 141 car parking spaces. With a cross-dock configuration, Building 2 will include 199,978 square feet and 198 car parking spaces. Sugar Land Crossroads is located within Sugar Land Business Park, which includes 1,000 acres with 79 buildings totaling 7.5 million square feet. At the end of 2019, the vacancy rate was 3.4% – 240 basis points below the submarket average.
Population in the Southwest submarket, where the site is located, is expanding rapidly in the suburbs of Sugar Land, Missouri City, and Richmond/Rosenberg. This growth is driving demand from industrial users, evidenced by similar speculative projects experiencing substantial leasing within six months of completion.
Despite being hit with a double whammy of coronavirus and low energy prices, Houston’s industrial market remains well-positioned for long-term growth due to the increasing population base, rapidly expanding e-commerce network, and strong foreign trade. Without e-commerce, the impact of coronavirus to the U.S. economy would be far greater, and the industrial market will continue to provide much-needed support to that sector.
About Transwestern Development Company
Transwestern Development Company (TDC®) creates real estate landmarks for itself, its partners and valued customers throughout the United States. Part of the Transwestern companies, the diversified business develops logistics, multifamily, office, mixed-use and healthcare properties, with a pipeline of projects in process or completed since 2012 exceeding $5.6 billion.
The privately held Transwestern companies have been delivering a higher level of personalized service and innovative real estate solutions since 1978. An integrated approach formed from fresh ideas drives value for clients across commercial real estate services, development, investment management and opportunistic programs for high-net-worth investors. The firm operates through 34 U.S. offices and global alliances with BNP Paribas Real Estate and Devencore. Learn more at transwestern.com and @Transwestern.