Hines Advances 2.3 Million-Square-Foot Industrial Portfolio Across Houston, Phoenix and Beyond

Hines, the global real estate investment manager, announced Sept. 10 new milestones across six industrial projects totaling more than 2.3 million square feet in Houston, Phoenix, Florida's Space Coast and California's Fremont-Newark manufacturing corridor, reflecting a targeted push into markets the firm has identified as structurally positioned to capture advanced manufacturing demand.

The portfolio spans new ground-up development and the repositioning of existing industrial product. Cushman & Wakefield and CBRE are among the brokers engaged to market properties within the portfolio for lease or sale.

"Advanced manufacturing is one of the structural forces reshaping real estate demand across the U.S., but that opportunity may not be evenly distributed," said Steve Luthman, Global Head of Real Estate at Hines. "We believe the strongest markets will be those where long-term capital investment is reinforced by skilled labor, infrastructure, supply chains and established innovation ecosystems. These developments reflect our strategy of identifying those markets early and applying our local expertise and operating capabilities to help meet the real estate needs created by their long-term growth potential."

The activity follows Hines' internally published research, Mapping the U.S. Manufacturing Buildout, which identified Houston, Phoenix and San Jose among markets benefiting from the convergence of manufacturing investment, skilled labor, infrastructure and established industry ecosystems.

"Translating that strategy into development requires discipline around market selection, location, building design and timing," said Palmer Letzerich, Senior Managing Director and Head of Industrial and Logistics, Americas at Hines. "These projects are designed not only for traditional logistics and light industrial requirements, but also for the more technical, power-intensive and specialized uses that are increasingly driving industrial demand from manufacturing, energy infrastructure, technology and aerospace/defense users."

Three Houston Projects at Different Stages of Development

The largest concentration of activity is in Houston, where Hines has three projects underway across distinct submarkets.

Aero Logistics Center, a 270,900-square-foot Class A development near William P. Hobby Airport, is expected to break ground in the third quarter of 2026. The project will include a 173,700-square-foot cross-dock building and a 97,200-square-foot front-load building, with flexible configurations designed for manufacturing and distribution users. The property is positioned with access to Interstate 45, the 610 Loop and Beltway 8. CBRE will market the property for sale or lease. Laura Denkler, Managing Director at Hines, is the project lead.

The Hobby Airport submarket, situated in southeast Houston, is oriented toward airport-proximate logistics, air-freight and light manufacturing users, and is more land-constrained than northwest Houston's bulk-distribution corridors. The cross-dock and front-load building combination indicates Hines is underwriting both mid-bay logistics users and more specialized manufacturing tenants.

Mills 249 Logistics, a 200,200-square-foot front-load industrial building at 8887 Mills Road in northwest Houston, is expected to be completed in September. Situated on approximately 16.5 acres, the building features 32-foot clear heights, 52 dock-high doors, flexible office space and 2,000 amps of power. Its location near Beltway 8 provides access to Highway 290, Interstate 45 and George Bush Intercontinental Airport. Partners will market the property for sale or lease. Denkler is also the project lead on this development.

Northwest Houston, anchored by the US-290 and Beltway 8 corridor, is among the region's most active bulk-distribution submarkets, with sustained institutional developer interest driven by regional distribution and e-commerce networks.

Lone Star Logistics Park Phase II, located at 2304 Reed Road along State Highway 288, is currently 83% pre-leased and scheduled to deliver this fall. The two-building, 476,063-square-foot addition to the existing campus will include a 371,263-square-foot cross-dock building with 36-foot clear heights, a 104,800-square-foot rear-load building and 2.7 acres of paved outdoor storage. Upon completion, the total Lone Star Logistics Park campus will reach 1,134,909 square feet. Phase I of the park is fully leased. Cushman & Wakefield is marketing Phase II for lease. Denkler is the project lead.

The Reed Road location provides access to downtown Houston, Hobby Airport and the BNSF Railway Intermodal Facility. The inclusion of paved outdoor storage is tailored to users requiring trailer storage, laydown yards or equipment staging — common requirements among building products distributors, energy infrastructure suppliers and regional logistics operators. The 83% pre-leasing rate ahead of delivery reflects continued occupier demand for modern, high-clear infill product in South Houston.

Cactus 303 Targets Phoenix's Semiconductor Supply Chain

In Arizona, Hines expects to begin construction in October on Cactus 303, a three-building, 572,282-square-foot Class A industrial development in Surprise, within Phoenix's West Valley. The project will include an approximately 395,000-square-foot cross-dock building and two rear-load buildings of approximately 102,000 and 75,000 square feet, all designed to accommodate single- or multi-tenant configurations.

Cactus 303 is located off Loop 303 and is approximately 30 minutes from TSMC's North Phoenix manufacturing campus. Hines described the project as positioned within one of the country's fastest-growing manufacturing ecosystems, where major semiconductor and advanced-manufacturing investment has driven expansion across the supporting supply chain.

Space Coast Innovation Park and California Repositioning Round Out Portfolio

In Florida, Hines — in partnership with Key Group — recently began construction on Space Coast Innovation Park, a planned three-phase industrial, aerospace and defense hub spanning approximately 450 acres in Brevard County. The first phase will include three rear-load industrial buildings totaling more than 639,000 square feet across approximately 50 acres. The development is located within the Space Coast Regional Airport's Exploration Spaceport in Titusville and is intended to serve aerospace, defense, technology and advanced-manufacturing users. Ryan Wood, Managing Director at Hines, is the project lead.

The broader project is intended to support the continued expansion of Florida's aerospace and space-exploration ecosystem by providing modern, scalable space near critical infrastructure and industry partners.

In California, Hines acquired 38083 Cherry Street in Newark in April 2026, a 156,000-square-foot industrial property in the Fremont-Newark manufacturing corridor near San Jose. Hines plans to begin construction in the first quarter of 2027 to reposition the existing Class B property into a modern Class A advanced manufacturing facility. The repositioning is expected to deliver upgraded functionality at a discount to replacement cost and approximately one year faster than ground-up development.

Existing electrical infrastructure at the property can potentially expand to more than 8,000 amps, positioning the facility to serve advanced manufacturing users in a supply-constrained market where access to power is an increasingly important differentiator. Sam Cheikh, Managing Director at Hines, is the project lead.

Portfolio Strategy Reflects Manufacturing-Driven Industrial Demand

Across the six projects, Hines said access to power, transportation infrastructure, skilled labor and proximity to major manufacturing and innovation clusters have increasingly influenced where and how the firm invests. The portfolio spans both new development and repositioning, reflecting what the firm described as different ways of responding to evolving occupier requirements.

Hines manages $91.7 billion of assets across property types globally, with 4,600 employees operating in 30 countries. The figures are as of December 31, 2025, and include both the global Hines organization and its registered investment adviser assets under management.

Sources

Hines Press Release, Sept. 10, 2026