CBRE Arranges Three Leases Totaling 517K SF at Baytown Intermodal Center in Cedar Port Industrial Park

CBRE has arranged three large, long-term warehouse leases totaling 517,213 sq. ft. to occupy the entirety of Building B and Building C at Baytown Intermodal Center, a 1.2 million sq. ft. industrial campus within Cedar Port Industrial Park in Baytown, Texas.

CBRE's Boomer White and Jim Stark arranged the leases on behalf of ownership, Reich Brothers, a privately owned industrial real estate investment group based in White Plains, N.Y., and Los Angeles.

Leasing for the Baytown campus began in January after Reich Brothers acquired the property, which global shipping and logistics company DHL vacated in 2021. The campus consists of Buildings A, B, C, and D, each spanning 200,000 to 400,000 sq. ft. of warehouse space on 67 acres. It is located at 4000 Cedar Boulevard near FM 1405 and the Grand Parkway within Cedar Port Industrial Park, the nation's largest rail and barge-served industrial park spanning 15,000 acres.

A third-party logistics company is leasing 307,000 sq. ft. to occupy Building C. Two tenants are leasing Building B: a cargo and port terminal operations company is leasing 110,000 sq. ft., and a refining catalyst supply company is leasing 99,000 sq. ft.

"These tenants are highly respected for their operational expertise," said Matt Reich, Vice President of Acquisitions at Reich Brothers. "They are a welcome addition to the tenant portfolio, strengthening the Port of Houston and the region's growing position in the global supply chain."

Baytown Intermodal Center is served by the BNSF and Union Pacific rail lines, with regional interstate access via I-10 and proximity to shallow-water barge docks, the deep-water Houston Ship Channel, and the Bayport and Barbours Cut terminals at the Port of Houston. The campus features building clear heights from 28 to 40 feet, six acres paved for container storage, an on-site barge dock, capacity for 350 rail cars, and renovated office space.

CBRE's leasing team is currently marketing a combined 705,000 sq. ft. for lease in Buildings A and D.

"Thanks to its exceptional access to road, rail, and port connections, Baytown Intermodal Center is the ideal location to facilitate Houston's rapid expansion of logistics and manufacturing operations," said Stark. "With container volume at the Port of Houston continuing to grow at a record pace, negotiations with tenants for Buildings A and D will move quickly."

Reich Brothers, which buys underused assets such as vacant properties or buildings that need to be redeveloped, owns 20 million sq. ft. of industrial real estate across the U.S. and about 2 million sq. ft. in Texas. The company re-entered the Houston market with its purchase of the Baytown campus earlier this year and aims to double its portfolio by 2023.

According to CBRE’s Q1 2022 U.S. Industrial Figures, Houston was the No. 3 top U.S. market for industrial net absorption in Q1 2022, with 7.4 million sq. ft. absorbed. Nationwide, strong demand for industrial space continued in 2022, after a record year for the U.S. industrial market in 2021.