{"id":5836,"date":"2025-11-03T07:53:50","date_gmt":"2025-11-03T07:53:50","guid":{"rendered":"https:\/\/www.commercialsearch.com\/blog\/?p=5836"},"modified":"2025-11-03T07:55:38","modified_gmt":"2025-11-03T07:55:38","slug":"pepsico-inks-1-05-msf-in-houstons-biggest-industrial-deal-of-2025-so-far","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/blog\/pepsico-inks-1-05-msf-in-houstons-biggest-industrial-deal-of-2025-so-far\/","title":{"rendered":"PepsiCo Inks 1.05 MSF in Houston\u2019s Biggest Industrial Deal of 2025 \u2014 So Far"},"content":{"rendered":"

PepsiCo has signed a long-term lease for 1.05 million square feet at 31270 Kingsland Blvd., marking the largest industrial transaction in the Houston<\/a> market this year and reinforcing the region\u2019s dominance in Sun Belt logistics, despite a cooling national development pipeline.<\/p>\n

Announced in early October, the deal consolidates operations from three existing PepsiCo warehouses totaling roughly 550,000 square feet into a single, state-of-the-art distribution and mixing center. The facility, developed speculatively in 2023 by Dallas-based Hunt Southwest within the I-10 West Trade Center, will serve as PepsiCo\u2019s inaugural \u201c1NA Mixing Center\u201d \u2014 an integrated distribution hub that combines Pepsi Beverages North America, Frito-Lay and Quaker Oats under one roof for the first time.<\/p>\n

By co-locating beverage, snack and food production streams, the center is designed to reduce transportation redundancies; accelerate fulfillment to Texas grocers, restaurants and retailers; and support faster delivery across the Southern U.S.<\/p>\n

The property features 40-foot clear heights; ESFR sprinkler systems; climate-controlled storage; advanced LED lighting; and parking for 374 vehicles, including trailers. A $5.3 million office build-out under \u201cProject Otis,\u201d designed by Powers Brown Architecture, began in July and is on track for completion by late October, paving the way for Q4 occupancy.<\/p>\n

CBRE\u2019s Nathan Wynne and Jason Dillee, who marketed the asset, represented the owner.<\/p>\n

The lease lands in Brookshire, a once-rural Waller County community that\u2019s now at the epicenter of Houston\u2019s industrial boom. Year-to-date, the submarket has absorbed a record 3.4 million square feet of space, driven by direct I-10 frontage, Grand Parkway connectivity and proximity to the Port of Houston. Major players \u2014 including Amazon, Tesla, Costco, Goya Foods, Ross Stores and Rooms To Go \u2014 have all expanded nearby in recent years.<\/p>\n

Waller County Judge Trey Duhon called the PepsiCo deal \u201canother example of our success in attracting large corporate moves<\/a>.\u201d Specifically, he highlighted anticipated job growth and tax revenue diversification, although local infrastructure \u2014 particularly traffic and water capacity \u2014 remains a point of community discussion.<\/p>\n

Looking at the Houston industrial market through Q3, vacancies sat at 6.4% in September \u2014 the lowest in the South \u2014 with asking rents at $7.15 per square foot and new leases averaging $8.52, according to Yardi Research data. Developers are also pushing ahead with 18.2 million square feet of projects, nearly double (91%) last year\u2019s pipeline. Between population growth, e-commerce demand and continued investment<\/a> at the Port of Houston, the corridor has momentum.<\/p>\n","protected":false},"excerpt":{"rendered":"

PepsiCo has signed a long-term lease for 1.05 million square feet at 31270 Kingsland Blvd., marking the largest industrial transaction in the Houston market this year and reinforcing the region\u2019s dominance in Sun Belt logistics, despite a cooling national development pipeline. Announced in early October, the deal consolidates operations from three existing PepsiCo warehouses totaling roughly 550,000 square feet into a single, state-of-the-art distribution and mixing center. The facility, developed speculatively in 2023 by Dallas-based Hunt Southwest within the I-10 West Trade Center, will serve as PepsiCo\u2019s inaugural \u201c1NA Mixing Center\u201d \u2014 an integrated distribution hub that combines Pepsi Beverages…<\/p>\n","protected":false},"author":3163,"featured_media":5840,"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-5836","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industrial-real-estate-news"],"acf":[],"yoast_head":"\nPepsiCo Leases 1.05 MSF in Houston\u2019s Largest Industrial Deal 2025<\/title>\n<meta name=\"description\" content=\"PepsiCo leases 1.05M SF at 31270 Kingsland Blvd. in Brookshire, consolidating three warehouses into one mixing center.\" \/>\n<meta name=\"robots\" content=\"index, follow, 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