{"id":227841,"date":"2026-03-31T01:27:10","date_gmt":"2026-03-31T01:27:10","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-tx\/227841\/"},"modified":"2026-03-31T01:27:10","modified_gmt":"2026-03-31T01:27:10","slug":"constellation-announces-ninth-industrial-project-since-2021-as-bigger-tenants-return-to-market","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-tx\/227841\/","title":{"rendered":"Constellation Announces Ninth Industrial Project Since 2021 As Bigger Tenants Return To Market"},"content":{"rendered":"

While Houston brokers and developers are again turning their heads toward tenants demanding 1M SF of industrial space, the appetite for midsized\u00a0buildings\u00a0isn’t depleted\u00a0just yet.<\/p>\n

Constellation Real Estate Partners<\/a> announced plans on Monday for a two-building, 422K SF speculative industrial project. Constellation Mills Road will be situated on 37 acres at 8175-8225 Mills Road in Northwest Houston.<\/p>\n

\"Placeholder\"\/<\/p>\n

\n Courtesy of Constellation Real Estate Partners\n <\/p>\n

\n Rendering of Constellation Mills Road\n <\/p>\n

Plans call for one 334K SF cross-dock building and one 88K SF front-load building, a groundbreaking in July, and estimated completion in the second quarter of 2027, according to a press release.<\/p>\n

The news follows a December announcement that Constellation was planning two other industrial developments<\/a> in Houston, one measuring 376K SF and the other 282K SF. Mills Road will be Constellation\u2019s ninth Houston development since 2021.\u00a0<\/p>\n

Stream Realty Partners<\/a> is tracking 126 speculative industrial buildings under construction in Houston. Only five are over 500K SF, and two of those have leases in place, Stream Executive Managing Director Matteson Hamilton<\/a> said at Bisnow\u2019s Houston Industrial Summit at Hilton Houston Post Oak by the Galleria on Thursday.\u00a0<\/p>\n

Smaller buildings are\u00a0being constructed because smaller sites are available but also because it\u2019s easier to get smaller projects capitalized, he said.\u00a0<\/p>\n

\u201cIt’s really hard to get a bigger goal capitalized because it is such a binary outcome, and the risk spectrum gets wide,\u201d Hamilton said. \u201cI call it the Houston Special, which is a 250K SF cross-dock with four entries, and it\u2019s leased to four different tenants.\u201d\u00a0<\/p>\n

Anecdotally, the Houston market has shown healthy demand for midsized industrial buildings throughout the first quarter. Enchanted Rock<\/a> leased a 407K SF building<\/a> under construction by Prologis<\/a>, Modular Power Solutions leased a new 436K SF building<\/a> developed by Lincoln Property Co.<\/a>, and Triad Electric & Controls leased 535K SF across two buildings<\/a> at Jackson-Shaw<\/a>\u2019s greensPORT Logistics Park.\u00a0<\/p>\n

But there is also demand for bigger buildings, and Houston developers\u00a0should build more of them, Hamilton said. Brokers at the event said tenants like Amazon<\/a>\u00a0have returned to the market, as the number of 1M SF leases in Houston dropped to zero in 2023<\/a>.\u00a0<\/p>\n

\u201cHouston has got to figure out how to get more bigger boxes on the ground because the demand is there,\u201d Hamilton said. \u201cOf those five buildings under construction over 500K SF, they\u2019re going to severely outperform [smaller buildings].\u201d\u00a0<\/p>\n

The number of companies taking 500K SF or larger leases surged 32% nationally<\/a> in 2025.<\/p>\n

Along with securing capital, another major challenge to developing big industrial is unlocking land and providing utilities,\u00a0Hamilton said.\u00a0<\/p>\n

\"Placeholder\"\/<\/p>\n

\n Bisnow\/Maddy McCarty\n <\/p>\n

\n Cisco-Eagle\u2019s Lance Reed, Lee & Associates\u2019 Richard Glass, Newman CRE\u2019s Nate Newman, Harbor Capital\u2019s Levi Benkert, Rycore Capital\u2019s Ryan Urech and Stream Realty Partners\u2019 Matteson Hamilton\n <\/p>\n

Constellation \u201cexecuted a complex assemblage\u201d with four owners and coordinated with multiple government agencies to secure the site for Constellation Mills Road, Constellation partner J.W. Fields said in a statement.<\/p>\n

\u201cThe Northwest Houston submarket has strong fundamentals with infill leasing demand outpacing supply,\u201d he said.<\/p>\n

John Ferruzzo<\/a>, William Carpenter, Woody Hillyer and Jax Rawlinson with KBC Advisors<\/a> will handle marketing and leasing for Constellation Mills Road.<\/p>\n

Also in Northwest Houston this quarter, Trammell Crow Co.<\/a>\u00a0and Clarion Partners<\/a> delivered the third and final phase of Weiser Business Park<\/a>, and Transwestern<\/a> started another four-building phase<\/a> of its Innerbelt Northwest Logistics Park.\u00a0<\/p>\n

Overall, Houston\u2019s industrial absorption remains strong despite a huge spike in construction<\/a>\u00a0in the early years of the pandemic. The market saw 14.6M SF of positive absorption last year, according to JLL<\/a>.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"While Houston brokers and developers are again turning their heads toward tenants demanding 1M SF of industrial space,…\n","protected":false},"author":2,"featured_media":227842,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[5559,88138,45701,45703,56,58,59161,57,88140,88142,73477,57840,88136,88137,88139,88141],"class_list":{"0":"post-227841","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-houston","8":"tag-amazon","9":"tag-big-box-industrial","10":"tag-constellation-real-estate","11":"tag-constellation-real-estate-partners","12":"tag-houston","13":"tag-houston-headlines","14":"tag-houston-industrial","15":"tag-houston-news","16":"tag-j-w-fields","17":"tag-jax-rawlinson","18":"tag-john-ferruzzo","19":"tag-kbc-advisors","20":"tag-matteson-hamilton","21":"tag-northwest-houston-industrial","22":"tag-william-carpenter","23":"tag-woody-hillyer"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/227841","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/comments?post=227841"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/posts\/227841\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media\/227842"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/media?parent=227841"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/categories?post=227841"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-tx\/wp-json\/wp\/v2\/tags?post=227841"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}