Palmetto Pontikes Breaks Ground at Port 10 Logistics Center
Multi-modal industrial park & SIT yard under construction
BAYTOWN, April 7, 2023 – Palmetto Pontikes, a partnership between Pontikes Development and McNair Interests, is breaking ground on two buildings at their Port 10 Logistics Center – the premier multi-modal industrial park in Baytown, TX. Building 3, a 450,873 square-foot rail-served facility, is set to be completed in Q3 2023, and Building 5, a 179,255 square-foot cross-dock facility, will deliver in Q4 2023.
JLL’s Richard Quarles, Joseph Berwick, David Holland, and Eliza Klein are handling the leasing on behalf of the Palmetto Pontikes project.
"We are thrilled to incorporate a rail service component to the Port 10 Logistics Center, which will offer improved accessibility, versatility, and streamlining to the Baytown region,” said George Pontikes, Principal of Pontikes Development. “The premier location, adjacent to Interstate 10, will provide easy access and connectivity, optimizing our customers' production and distribution economics."
Building 3 boasts rail connectivity to the Union Pacific (UP) main line and direct access to UP's Coady Yard. A proposed ±452,266-square-foot building pad site, Building 4, is located adjacent to Building 3. Both buildings offer on-site truck, trailer, container, and rail-car storage capabilities, with SIT yard capacity of up to +/-2,000 rail cars, operated by Watco. Meanwhile, Building 5 offers direct access to the I-10 feeder road, accommodating users ranging from ±90,000 square feet and up.
As a joint venture between Pontikes Development, Watco, and McNair Interests, the Port 10 SIT Yard will provide off-site railway infrastructure for industrial tenants, allowing them to store empty and loaded rail cars with direct access to Building 3 and Building 4. This first phase of construction, delivering in Q1 2023, will include off-site railway infrastructure with a capacity of up to 420 rail cars. The second phase will increase this capacity to an additional 1,200 rail cars bringing the total capacity to ~2,000 cars.
“The introduction of the rail-service component will further elevate Port 10’s role in the southeast Houston submarket as a hub for industrial growth and commerce,” said Quarles, JLL’s Executive Vice President. “We are confident that Port 10 Logistics Center will continue to be a valuable asset to the Baytown community and its businesses.”
According to JLL Houston’s Q4 Industrial Insight report, Houston's real estate market was highly active in 2022, with a record 27.5 million square feet of occupancy gains and 49.2 million square feet of leasing activity. This high demand for space led to decreased vacancy rates and increased starting rents, with over 36 million square feet of new supply currently underway to meet the demands of the growing tenant base.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $20.9 billion, operations in over 80 countries and a global workforce of more than 103,000 as of December 31, 2022. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.