Trammell Crow Company and Daiwa House Break Ground on 687,338-SF Phase II at Blue Ridge Commerce Center in Southwest Houston

Trammell Crow Company and joint venture partner Daiwa House Texas Inc. have broken ground on Phase II of Blue Ridge Commerce Center in southwest Houston, launching three speculative industrial buildings totaling 687,338 square feet across 40.9 acres in Fort Bend County. The development team is targeting a spring 2027 delivery for the project, which is located at the northeast corner of Fort Bend Parkway and McHard Road, approximately two miles south of Beltway 8.

Phase II Building Configuration and Specifications

Phase II of Blue Ridge Commerce Center comprises three industrial buildings available for lease or sale. Building 6 is a 182,908-square-foot cross-dock facility with a 32-foot clear height. Building 7, the largest of the three, is a 303,808-square-foot front-load building with a 36-foot clear height. Building 8 is a 200,622-square-foot rear-load building with a 32-foot clear height.

As with Phase I, the development team is pursuing LEED certification for all three buildings. Seeberger Architecture designed the Phase II project, while BGE serves as civil engineer. E.E. Reed Construction is the general contractor for all three Phase II buildings, and Linco Construction Co. is handling public infrastructure improvements. Sumitomo Mitsui Banking Corporation provided project financing.

Cape Bell and Jason Dillee of CBRE are marketing and leasing both phases of the project.

Phase I Performance Supports Follow-On Development

The Phase II groundbreaking comes less than a year after Phase I was delivered last fall. Phase I, located on the west side of Fort Bend Parkway, includes five buildings totaling 1,350,559 square feet. Since delivery, three of those buildings have been sold to owner-occupants and one has been fully leased. Building 2, a 157,626-square-foot front-load building, remains available.

A Phase I disposition involving Buildings 4 and 5 — at 16741 and 16751 Blue Ridge Commerce Drive — totaled 782,015 square feet in the southwest submarket, underscoring the project's relevance as both an owner-user and leasing product in the Houston industrial market.

"Phase I of Blue Ridge has been a tremendous success, and we're excited to break ground on the second phase of this Class A+ project to serve Houston's rapidly growing southwest industrial submarket," said George Farish, a Principal with Trammell Crow Company. "We're grateful for our continued partnership with Daiwa House and the rest of our outstanding project team."

Southwest Houston Industrial Market Context

The Phase II groundbreaking comes as Houston's industrial market continues to post strong absorption figures. The market recorded 7.0 million square feet of net absorption in the second quarter of 2026 and 11.3 million square feet year-to-date, with overall vacancy holding around 7.4 percent.

The southwest submarket carries notably tighter conditions than the broader Houston average. The submarket holds approximately 43.1 million square feet of inventory with direct vacancy around 2.4 percent and roughly 2.46 million square feet under construction as of early 2026. Weighted asking rents in the submarket reached approximately $0.86 per square foot in the second quarter of 2026, among the stronger rent environments in the Houston metro.

The submarket's below-average vacancy rate and the demonstrated leasing and sales velocity at Phase I provide the market backdrop against which Trammell Crow Company and Daiwa House are advancing the second phase of the project. The three Phase II buildings are designed to serve distribution users with access to Fort Bend Parkway and Beltway 8, positioning the campus for tenants serving both the southwest Houston population base and the broader metropolitan area.

Project Team

In addition to Trammell Crow Company and Daiwa House Texas Inc. as co-developers, the Blue Ridge Commerce Center Phase II project team includes Seeberger Architecture as designer, BGE as civil engineer, E.E. Reed Construction as general contractor, and Linco Construction Co. for public infrastructure. Sumitomo Mitsui Banking Corporation is providing construction financing. Leasing and marketing for both phases is being handled by Cape Bell and Jason Dillee of CBRE.