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Originally posted here by Shonda Novak

Amid continued strong demand in Central Texas’ booming industrial market, developers have kicked off construction on several major new warehouse and distribution centers that would bring nearly 3 million square feet of space to the region.

Stream Realty Partners announced today that it is rolling out more than 1.75 million square feet of industrial space in Austin and in the suburb of Buda in an effort to keep up with the demand.

Stream, a national commercial real estate firm, said it recently broke ground on the three new projects — the 968,475-square-foot Buda Commerce Center in Buda; the 413,388-square-foot Eastside Commerce Center in Southeast Austin; and the 376,380-square-foot Howard 130 in northeast Austin.

In addition to those projects, another firm — Freehill Development Co. — said it has broken ground in Georgetown on 1300 Westinghouse, the first of five industrial projects that Austin-based Freehill plans for Central Texas.

Freehill said it intends to build an industrial portfolio totaling 1.1 million square feet across the region, with its projects tailored to smaller local and regional industrial tenants that don’t have as many options in a market currently favoring large distribution space.

Here are more details about the projects announced by Stream and Freehill:

Buda Commerce Center

Located 15 miles south of downtown Austin in fast-growing Buda, Stream’s Buda Commerce Center will have five buildings. Stream said it started construction in the fourth quarter of 2022 on the site — 70 acres at Interstate 35 between Cabelas Drive and Robert S. Light Boulevard. Stream expects construction to wrap up in the fourth quarter of this year.

“Buda and the IH-35 corridor have historically been underserved markets, and we are excited to provide a range of Class A options that will help fulfill demand and serve the supply chain locally, regionally, and nationally,” Sam Owen, managing director and Partner at Stream Austin, said in a news release.

Buda Commerce Center will have five state-of-the-art warehouses totaling 968,475 square feet.

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Eastside Commerce Center

In Southeast Austin, across Texas 71 from Austin-Bergstrom International Airport, Stream has started construction on Eastside Commerce Center. The industrial development will have four large warehouse buildings as well as three so-called “shallow bay” buildings that can accommodate smaller tenants. The project is expected to be ready in the first quarter of 2024.

Buda Commerce Center will have five state-of-the-art warehouses totaling 968,475 square feet.

Powers Brown Architecture

Howard 130

Howard 130 in Northeast Austin rounds out Stream’s recent industrial projects. It is set to come online in the second quarter of this year. Located between Interstate 35 and Texas 130, the three-building project is 20 minutes from the Domain and downtown Austin. It is located in one of Austin’s fastest-growing industrial areas, and is surrounded by some of Austin’s largest corporate employers.

Howard 130 will consist of three warehouses with a total of 376,380 square feet of space.

Powers Brown Architecture

Stream Austin leases and manages over 24 million square feet of office and industrial space in Austin and surrounding areas.

1300 Westinghouse

Freehill’s first industrial project — 1300 Westinghouse in Georgetown — will have four buildings with a combined 176,546 square feet of office, warehouse and showroom spaces ranging from 4,500 square feet to 55,750 square feet. The project is due to deliver in July. Ferguson Enterprises, a North American distributor, has signed a lease for 207,180 square feet in one of the buildings.

Freehill, a privately held development company, said its other projects are planned for San Marcos, Leander, northeast San Antonio and Dripping Springs.

Transwestern has been tapped to pre-lease 620,000 square feet of space across three of Freehill’s projects, including 1300 Westinghouse.

“Freehill’s mission is to cater to the small and regional businesses throughout Central Texas which are not a fit for the majority of projects comprising the industrial pipeline,” said Will Paton, Freehill’s president. Paton founded the company last year with Tim Horan, the firm’s managing partner, who formerly was with Transwestern.

Austin-based Freehill Development has broken ground on 1300 Westinghouse in Georgetown. The industrial project is its first in Central Texas, with more planned.

The projects by Freehill and Stream join numerous other industrial developments both underway and planned amid ongoing demand for warehouse and distribution space across the Austin area.

This month, Jackson-Shaw announced plans to develop ATX 130, an industrial business park, on 67 acres at Texas 130 and Elroy Road. The development, to be located near the Austin airport and not far from Tesla’s electric vehicle manufacturing plant, will have 602,400 square feet of office, warehouse and distribution space. ATX 130 is due to break ground in March.

And recently, HPI Real Estate Services & Investments said it has started construction on the second phase of Crossroads Logistics Center, a 1.6 million square-foot industrial development to be built in four phases near Manor.

The project is located east of Parmer Lane between U.S. 290 and Texas 130.

Phase II will have two buildings, each with 212,000 square feet, for a total of more than 424,000 square feet of space. As of last month, Building 4 of Phase II was 50% pre-leased, and is due to be finished in the fourth quarter of this year.

“Coming out of the pandemic and looking towards 2023, the industrial market in Austin should continue to see fast-growing demand for logistics and manufacturing space,” said Andy Thomas, an industrial partner with HPI.