Silverado Interests, in partnership with Old House, acquired Houston Small-Tenant Industrial Portfolio in 2022, a best-in-class, 216,772 square foot portfolio consisting of thirteen light industrial properties located in Houston’s northwest, north, and northeast submarkets.
Built between 1993-2018 , the Portfolio offered the opportunity to acquire a multi-building, stabilized, cash-flowing portfolio. All buildings are located within the Grand Parkway among high-growth submarkets that have true barriers to entry and, with an average tenant size of approximately 16,675 square feet, see minimal competition from new supply as construction costs and land prices continue to rise. As a result, rents continue to grow at a significantly higher pace than the overall market.
Houston has a particularly robust industrial market. According to Cushman & Wakefield, Houston absorbed 8.4 MSF in 3Q21 landing it as the 3rd highest MSA for absorption activity in the nation. Northern Houston industrial submarkets (NW, N, NE) collectively absorbed more than 3.2 MSF as of H1 2021, accounting for 41% of Houston’s total absorption of 7.8 MSF in the first half of the year. More recently, the Northwest submarket outperformed all other submarkets with 2.7 MSF of new leasing activity occurring in 3Q21. The North submarket followed closely behind with 1.7 MSF of leasing activity.