{"id":4753,"date":"2025-08-06T05:17:45","date_gmt":"2025-08-06T05:17:45","guid":{"rendered":"https:\/\/www.commercialsearch.com\/blog\/?p=4753"},"modified":"2025-08-06T05:17:45","modified_gmt":"2025-08-06T05:17:45","slug":"houston-industrial-construction-picks-back-up","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/blog\/houston-industrial-construction-picks-back-up\/","title":{"rendered":"Lovett Starts Phase II in Houston as Industrial Construction Picks Back Up"},"content":{"rendered":"<p>Lovett Industrial broke ground last week on the second phase of its 610 Business District in Houston. The new phase will add 537,000 square feet across four shallow-bay buildings that are between 53,000 and 219,000 square feet. The site, near Mykawa and Dixie just south of Loop 610, offers access to the port, labor pools and key distribution corridors. Phase I leased quickly after delivery last year. Full buildout will bring the project to 1.5 million square feet by early 2026.<\/p>\n<p>The new start comes at a time when most developers are holding off. Across the country, high vacancy and slower absorption have paused speculative construction. But, Houston hasn\u2019t followed suit. As of June, 14.8 million square feet was under construction in the metro \u2014 up 5% from the previous month and more than double year-over-year, according to Yardi Matrix.<\/p>\n<p>Additionally, vacancy stood at 6.5% through the end of the second quarter. That\u2019s well below the national average of 9% and low enough to hold off any oversupply concerns, at least for now.<\/p>\n<p>Notably, a growing share of new development is tied to manufacturing users. In the first half of the year, Apple, Nvidia, Tesla, and Foxconn announced major facilities across the region focused on AI hardware, power storage and advanced computing systems. Several of those projects are clustered in northwest Harris County around the Fairbanks North Houston Road and Fallbrook Pines Drive corridor.<\/p>\n<p>Specifically, Foxconn\u2019s Ingrasys unit has spent roughly $142 million acquiring 1.02 million square feet and nearly 86 acres in that area, including a $33 million building <a href=\"https:\/\/www.houstonchronicle.com\/business\/real-estate\/article\/apple-ai-factory-houston-nvidia-location-foxconn-20292418.php\" target=\"_blank\" rel=\"noopener\">believed to be tied to AI component production<\/a>. Apple is also building a 250,000-square-foot server plant within the same park, while Nvidia (in partnership with Foxconn) has selected a nearby site for its U.S. supercomputing program.<\/p>\n<p>Meanwhile, Tesla is expanding Megapack production farther west in Brookshire, adding battery storage to the region\u2019s growing base of large-scale, infrastructure-heavy industrial users.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Lovett Industrial broke ground last week on the second phase of its 610 Business District in Houston. The new phase will add 537,000 square feet across four shallow-bay buildings that are between 53,000 and 219,000 square feet. The site, near Mykawa and Dixie just south of Loop 610, offers access to the port, labor pools and key distribution corridors. Phase I leased quickly after delivery last year. Full buildout will bring the project to 1.5 million square feet by early 2026. The new start comes at a time when most developers are holding off. Across the country, high vacancy and&#8230;<\/p>\n","protected":false},"author":3163,"featured_media":4225,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-4753","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industrial-real-estate-news"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>\u202fHouston\u2019s Industrial Pipeline Picks Up as Vacancy Remains Low<\/title>\n<meta name=\"description\" content=\"At 14.85 million square feet of industrial space under construction, Houston has the third-largest active pipeline among major U.S. markets, up 5% May to June.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, 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