Houston’s ongoing surge in development and population is attracting the eye of many major companies. This time, it is Amazon and FedEx. These two giants are building new warehouses in Northwest Harris County. As the warehouse distribution industry within Houston expands, the job market and perhaps even the housing market will grow as even more people flock to the city to take advantage the booming economy. Here is a look into the particulars of both ventures.
FedEx’s New Distribution Center
FedEx is currently building a brand new distribution center in Cypress, just off of West Grand Parkway. This distribution center is slated to be 800,000 square feet when complete. Officials say that this site was chosen for several reasons. Chief among them is that the location grants access to several major highways. Additionally, the new distribution center will be close to the distribution centers of several FedEx customers.
In 2015, FedEx purchased 484 acres for this project. When completed, this will be the largest of the FedEx Ground facilities in Texas, capable of processing well over 22,000 packages every hour. According to FedEx’s schedule, this facility will employ about 400 people and is slated to open in August of this year.
Amazon Builds Fulfillment Center
The Amazon fulfillment center will be located in Spring, specifically at the Pinto Business park, which is on Interstate 45. This facility will be 855,000 square feet and when complete, will employ at least 1,000 people from the area. Many of these employees will make between $23,000 and $33,000 yearly while upper level positions like managers will receive upward of $70,000 per year.
It is expected that the project will cost $136 million to build and Amazon will receive a $179,073 tax break each year for 10 years. County commissioners say that this tax break will be vastly offset by the increase in the area’s tax base.
These two warehouses are not just outliers, but part of a larger trend throughout Houston. According to real estate firm JLL, the last couple of years have seen a 60% increase in the industry, with more than 6.7 million square feet of warehouse and distribution space added to the city. As population and industry continues to swell, so too will Houston’s warehouse market.