Commerce Center is an Example of Continued Interest from a Deep Buyer Pool

Lack of available product continues to drive both leasing and investor demand in the small tenant light industrial category. Case in point is Commerce Center Sugar Land, a six-building light industrial/flex portfolio totaling 93,945 square feet in this suburban Houston community. A subsidiary of ARKA Properties Group Inc. purchased the portfolio for an undisclosed price.

Commerce Center Sugar Land was constructed between 2006 and 2007, and consists of four side-load and two rear-load buildings with a variety of warehouse, manufacturing and specialized lab space. The 91.6-percent-leased portfolio is home to 11 tenants in the environmental, energy, manufacturing and market research industries.

Situated on 7.154 acres at 12553, 12559, 12565, 12615, 12621 and 12625 W. Airport Blvd., Commerce Center Sugar Land is within the deed-restricted master-planned Sugar Land Business Park in the Southwest Industrial submarket. The portfolio is at the convergence of West Airport Boulevard and Dairy Ashford Road, which is near both U.S. Highway 59 and Beltway 8.

JLL marketed the portfolio on behalf of the seller, an affiliate of Griffin Partners Inc. The JLL team was led by Trent Agnew, Charles Strauss, Katherine Miller and Jack Moody.

“The Commerce Center Sugar Land transaction is another example of continued interest from a deep buyer pool for flex/light industrial product both locally and nationally,” Strauss said. “As construction costs and land prices continue to rise, it has become incredibly difficult to replicate properties such as this that cater to smaller tenants in the market, driving both leasing and investor demand for this product type.”