Realterm, Stotan Break Ground on Texas IOS Facility

Realterm and Stotan Industrial have broken ground on a Class A, 25.8-acre industrial outdoor storage project in Laredo, Texas. Completion is scheduled for the second quarter of next year.

The development also includes a 19,710-square-foot maintenance facility with one drive-in and seven drive-through bays, as well as a 2,250-square-foot office and parts area. The acreage is set to provide 699 trailer stalls with five points of ingress and egress.

Designs call for the incorporation of border security requirements, with the property also enrolled in a voluntary supply chain security program led by the U.S. Customs and Border Protection to expedite border crossing times.

---

READ ALSO: Now’s the Time for the Evolution of IOS

---

Overall trade at Port of Laredo was up nearly 5.4 percent year-to-date, while imports from Mexico grew nearly 6.2 percent, according to the City of Laredo. Last year, Laredo’s entry point processed $339 billion of the total $840 billion U.S.-Mexico trade.

These figures may improve further as the Laredo World Trade Bridge border crossing is set to undergo an expansion project. Two new lanes would be added to the current structure and a new eight-lane bridge could be built starting next year.

Uncertainties surrounding tariffs remain. The current administration suspended an additional 30 percent Mexico levy that was due Aug. 1. However, the respite is set to last just 90 days, and most imports already face a 25 percent tariff.

Building IOS despite a challenging environment

Though investors continue betting on IOS properties, the sector faces a scarcity of supply as the asset class is largely undesirable for local governments, JLL Director William McCormack previously told Commercial Property Executive.

Earlier this year, Unbound Development paid $14.1 million to purchase a vacant 100,000-square-foot warehouse in Chandler, Ariz., planning to reposition the property for IOS usage.

Last year, Manulife Investment Management and Foundry Commercial kicked off a joint venture to acquire and develop IOS sites across the Southeast. Then-plans called for the acquisition of 10 properties for development, of which three had already closed.