Houston’s new submarkets: Far West, West Belt

HOUSTON – New submarkets, Far West and West Belt, have been added to the Houston area thanks to the surge in westward real estate activity, according to CRBE.

Far West contains nine buildings totaling 567,000 sf and is 67.8 percent occupied. The boundaries are along the north by I-10, the south by Westpark Tollway and the east stretching from Greenhouse Rd. to Hwy. 99.

With five proposed buildings and nearly 7,600 acres of available land for future developments, the Far West will continue to grow in light of its close ties with the neighboring Energy Corridor.

“The Energy Corridor boundary kept getting pushed further west and with the inclusion of Cinco Ranch, this new market just sort of developed,” said Analee Micheletti, research analyst for CBRE’s Houston office.

The West Belt submarket has boundaries roughly along Beltway 8 from Clay Rd. to Hwy. 249. Sam Houston Crossing II, which has 313,000 sf, along with 8 West Centre with 228,000 sf, each delivered in 2013 as new additions to the West Belt submarket. Both are 100 percent leased.

Four new buildings totaling 482,000 sf are currently under construction, including Beltway Lakes III, a speculative project. Beltway Lakes IV, a speculative project, will break ground in fourth quarter 2013.

“The most recent development in the area has been within this last recover cycle. We’ve seen it increase in activity along I-10 and tenants who did not find vacancy in the Energy Corridor have pushed some of that development near the Beltway,” said Micheletti.