BCS has broken ground on Grove Business Park, a 46-acre industrial campus in Baytown, Texas, in the southeast region of Greater Houston. The project will total 438,960 square feet of spec industrial space.
Grove Business Park will be marketed to small- and mid-sized industrial users, according to BCS, which says there is pent-up demand for smaller spaces in the metro Houston market.
The development will feature nine new buildings ranging from 30,000 square feet to 120,120 square feet. Seven of the buildings will be dock-high distribution facilities, while two will be 20-ton crane ready manufacturing facilities.
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The Houston-based developer and landlord has tapped Urban Cos. as the architect and general contractor, with Altar Group as the civil engineer. JLL’s Michael Johnson, Michael King and John Beeler placed the debt with Voya Investment Management, which is the lender for the project.
BCS Partner Robert Cannon noted that the project represents a “significant step in diversifying our portfolio,” which includes assets nationwide. Travis Land and A.J. Williams of Partners Real Estate are the listing brokers for Grove Business Park.
BCS isn’t alone in seeing industrial demand in the southeast part of metro Houston. Recently Alliance Industrial Co. closed on about 63 acres in the area, with plans to break ground on TriPort 8, an 881,521-square-foot industrial park. It will be a five-building development.
Houston industrial market holding its own
The Greater Houston industrial market is showing some resilience, despite worldwide macroeconomic uncertainty, especially for international trade. Houston’s industrial vacancy came in at 6.2 percent at mid-year, representing a 10 basis point decline from the first quarter, according to CBRE.
Net absorption of Houston-area industrial totaled 2.7 million square feet in the second quarter of 2025, a healthy increase from 125,000 square feet during the first quarter, CBRE noted. Over the 12 months, net absorption has totaled just over 14.2 million square feet.
Metro Houston is forecast to demonstrate further occupancy growth through year-end, CBRE reported, chalking the trend up to the region’s rapidly growing population and continued expansion in the manufacturing and distribution sectors.