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News release

HOUSTON

Thriving port market driving demand for freestanding industrial buildings

Vigavi completes 36,000-square-foot building, beginning two more in southeast Houston


HOUSTON, August 16, 2017Vigavi Realty and JLL today announced the completion and delivery of a 36,000-square-foot design build project at Fairmont Industrial Center, 11802 Fairmont Parkway in La Porte, Texas. HydroTex, a Chicago-based pump systems and engineering services firm, owns and occupies the freestanding manufacturing building.

JLL's Richard Quarles and Mark Nicholas negotiated the terms of the land sale on behalf of the seller, Vigavi Realty. Lee & Associates' Preston Yaggi and Stephen Kuper represented HydroTex in the transaction. Architect Terry Kennedy, of Munson Kennedy Partnership, and Vigavi Realty led the project construction.

The asset at Fairmont Industrial Center is indicative of demand in the southeast. As the result of strong levels of activity at Port Houston and the strength of the downstream sector, the submarket has experienced heightened demand for both large distribution facilities and freestanding manufacturing facilities. According to JLL research, the southeast recorded 864,463 square feet of deals signed in the second quarter of 2017 and approximately 2.3 million square feet of positive net absorption year to date. Strong leasing activity continues to drive demand for new product. The submarket's 1.1 million square feet of deliveries accounted for 93.2 percent of the metro's industrial completions during the second quarter.

In response to this demand, Vigavi will soon break ground on two speculative buildings at Bay Oaks Business Park, at the corner of Genoa Red Bluff Road and Bay Oaks Drive in Pasadena, Texas. The buildings will be 20,000-square-foot, tilt wall structures with crane capacity. Features will include 26-foot clear heights, overhead doors designed with the ability to be converted to dock high doors, and additional land available for expansion. The buildings are expected to deliver in the first quarter of 2018 and will be marketed by JLL.

"Southeast Houston continues to benefit from its proximity to Port Houston and the nearby petrochemical boom," said Luis Villarreal, managing director of Vigavi. "We are excited to begin work on these buildings at Bay Oaks Business Park as we see demand from companies looking to locate in and capitalize on the strategic advantages of this submarket." 

About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. A Fortune 500 company, JLL helps real estate owners, occupiers and investors achieve their business ambitions. In 2016, JLL had revenue of $6.8 billion and fee revenue of $5.8 billion and, on behalf of clients, managed 4.4 billion square feet, or 409 million square meters, and completed sales acquisitions and finance transactions of approximately $145 billion. At the end of the first quarter of 2017, JLL had nearly 300 corporate offices, operations in over 80 countries and a global workforce of nearly 80,000. As of June 30, 2017, LaSalle Investment Management had $57.6 billion of real estate under asset management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.