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News release

Houston, TX.

Jones Lang LaSalle Secures Largest Lease in Port of Houston Submarket

Jacobson Warehouse Company takes 436,410 square feet of industrial space at Interport


HOUSTON, May 13, 2011 – Jones Lang LaSalle announced today that Jacobson Warehouse Company, Inc. has signed a 436,410-square-foot industrial lease at Interport Distribution Center - Building Two, located at 13031 Bay Area Blvd. in Pasadena, Texas. Jones Lang LaSalle Senior Vice President John M. Talhelm and Vice Presidents Will Swanson and Kevin Erck represented the landlord, FR/CAL Interport, LP, a property owned by the California State Teachers Retirement System (CalSTRS). Principal Real Estate Investors is the advisor to CalSTRS for the property with Sealy & Company acting as property manager.  CB Richard Ellis represented the tenant.

“This lease signifies a breakthrough for a sub-market which has recently recorded double-digit vacancy rates, while other Houston markets are in the mid-single digits,” said Talhelm  “Interport Distribution Center is an attractive location for tenants like Jacobson with requirements for storage and distribution efficiency as well as quality construction and stable ownership.  The Interport site offers a secure location in a controlled and well maintained environment, with excellent accommodations for tractor trailer rigs and proximity to two container terminals; features not found in other area locations.”

Located in the southeast submarket serving the Port of Houston’s container terminals, Interport was part of an accelerated development trend that resulted in an overbuilt market. At its peak, vacancy rates in this sub-market averaged over 18 percent with minimal lease activity. 

The Interport facility is equidistant from the Barbours Cut Container Terminal and the Bayport Container Terminal. This was important to the tenant due to the drayage and fuel costs involved in moving a large number of containers to and from the terminals. The site boasts cross-dock configuration; the ability to store numerous trailer rigs without blocking any doors; controlled ingress and egress; large truck courts; fully installed, state-of-the-art T-5 lighting; and the ability to expand into additional space within the same facility. 

“Historically, transactions of this size occur infrequently in the Houston market; however, as Houston’s population continues to expand, the need for larger, regional distribution facilities should also increase,” added Talhelm.  “Absorption of the remaining vacancies in this southeast submarket will accelerate, ultimately opening up new opportunities for the development community.”

About Jones Lang LaSalle

Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specializing in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2010 global revenue of more than $2.9 billion, Jones Lang LaSalle serves clients in 60 countries from more than 1,000 locations worldwide, including 185 corporate offices. The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.8 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with more than $43 billion of assets under management. For further information, please visit our website, www.joneslanglasalle.com.