Stream Realty has broken ground on the second phase of Bay Area Business Park, bringing more spec industrial space to what’s become a very tight submarket.
The first phase of Bay Area Business Park includes three buildings, delivered in 2009, that total 1.2 million square feet. That phase is 100 percent leased to tenants including Honeywell International (NYSE: HON) and Calpine Corp. (NYSE: CPN)
The second phase of the project will include four buildings totaling nearly 830,000 square feet and, like the first phase, is LEED pre-certified, which is rare for industrial buildings. When complete, the park will be the largest multitenant industrial development in the southeast submarket, clocking in at more than 2 million square feet.
All four buildings will be constructed simultaneously and will begin to deliver in September of 2016. Two of the buildings will be constructed to handle hazardous materials, to capitalize on the boom in petrochemicals and the development’s proximity to the Bayport Container Terminal.
“This is a submarket that went from a 20 percent vacancy rate in 2009 to a 3.1 percent vacancy rate today,” said Justin Robinson, managing director and partner at Stream. “This is 100 percent speculative, but we’ve received a lot of interest from potential tenants for this project and hope to announce something soon.”
The park is owned by Principal Real Estate Investors and is being developed and leased by Dallas-based Stream Realty Partners. Houston-based Powers Brown designed the project, Houston-based Ward Getz & Associates is the engineer and Sugar Land-based Rosenberger Construction is the general contractor.