A speculative industrial project is currently under construction in Laredo, covering an area of 131,718 square meters.
LAREDO, TX – Given the lack of Class A industrial sites, the time is right for a speculative industrial project of 131,718 square feet currently under construction. The property was developed by Dallas-based Gulf Corporation and is being built by Park Avenue Construction.
The property is expected to be completed in the first quarter of 2020. Class A industrial development is located off Interstate-35.
CBRE's First Vice President Joshua Aguilar and Rob Burlingame are marketing the property on behalf of landlord TW Laredo I LLC, a unit of Tailwind Real Estate Equities.
"This new development from Gulf Corporation provides users in the marketplace with a much-needed world-class space that is suitable for a variety of uses including logistics, sales and manufacturing," said Aguilar.
There will be 4,000 square feet of office space on the ground floor, a 1,000 square foot warehouse office on the second floor, a 32-foot clearance, 46 dock-high doors, two ramp doors, LED warehouse lighting and ESFR fire protection. In addition, this facility offers sufficient parking spaces with 73 trailer parking spaces and 60 employee parking spaces.
"It's a great location with easy access to I-35 in an incredibly strong market," said Wynn Searle, executive vice president of development for Gulf Corporation. "We firmly believe that this will be one of the best properties to go live in Laredo next year and that it will be an excellent opportunity for the future tenant."
Aguilar agrees with the apparent industrial demand in Laredo, saying that current availability for Class A industrial sites here is extremely low.
“The demand for space in Laredo continues, especially from those looking for more efficient space. In particular, we are seeing requests for better free heights, ESFR fire safety, heavy trailer parking, etc., ”Aguilar told GlobeSt.com. "The lack of supply and limited new build has resulted in users becoming more aggressive when they take up space to keep up with the competition."
Industrial absorption rose from negative territory to a more familiar location this quarter, according to a report by CBRE. In the second quarter of 2019, Houston absorbed a whopping 2.9 million square feet of industrial space. In addition, the vacancy rate rose by 10 basis points to 5.5%.
Record building totals were reported this quarter. There are currently 20.5 million square feet of industrial product underway in Houston. This is the highest quarterly number ever recorded by CBRE Research. This quarter in particular, 11.2 million square feet of new industrial product were launched, bringing the year-to-date total to a solid 13.6 million square feet.
Sustained employment and population growth, a growing e-commerce company and increased activity in the Port of Houston are driving demand for industrial space across the Houston subway, according to CBRE.