Transwestern Investment Group and Hanover Company to Develop 749,016-SF Industrial Facility in North Houston

HOUSTON — Transwestern Investment Group and Hanover Company are moving forward with a 749,016-square-foot Class A industrial facility in Houston's North submarket, the firms announced Sept. 3. The joint venture is developing the project on behalf of a separately managed account, targeting a supply-constrained corridor where large-format modern space has grown increasingly scarce.

The facility will rise at Rankin Road and U.S. 59/I-69, directly adjacent to George Bush Intercontinental Airport, with highway frontage and convenient access to Beltway 8 and I-45. Construction is expected to begin in January 2027, with completion scheduled for December 2027.

Project Specifications and Design

The planned cross-dock facility is designed to accommodate large-format distribution and logistics users. Key building specifications include 40-foot clear heights, truck courts ranging from 130 to 185 feet, 106 dock doors, 140 trailer stalls, and 429 auto parking spaces — a program that aligns with current institutional bulk-distribution standards.

Hanover Company will lead development execution on the project. The site itself required an unusually complex land assembly process: Hanover's team negotiated with more than 40 individual land sellers to consolidate six separate properties into a single developable parcel.

"Bringing together over 40 individual land sellers to assemble six separate properties was a highly complex process that required intense focus from all parties involved," said James Melody, Texas Development Partner at Hanover. "It would not have been possible without Transwestern Investments' ability to quickly understand the many layers of the deal and to trust in Hanover's ability to execute accordingly. The result will be a modern, Class-A facility that is built to serve the large-format industrial needs of North Houston."

Partners and Roles

Transwestern Investment Group is serving as investment manager on behalf of the separately managed account, overseeing capital and investment strategy. Hanover Company, headquartered in Houston and founded in 1982, is leading development and construction. The firm specializes in high-quality multifamily residential and industrial properties and operates across major U.S. markets including San Francisco, Los Angeles, Dallas, Austin, Boston, Washington D.C., and Atlanta, among others.

"We're proud to partner with Transwestern Investments to bring this project to market and leverage our development expertise in a location with strong, long-term potential," said David Hudson, President of Hanover - Industrial. "Its immediate access to major transportation corridors and proximity to George Bush Intercontinental Airport make it exceptionally well-positioned to meet the evolving needs of today's industrial users and support continued growth in the region."

Mike McKenzie, Director of Acquisitions at Transwestern Investments, pointed to the demand environment as a key driver of the project's timing. "Houston continues to see demand from large-format industrial users, with limited modern space available to accommodate those requirements," McKenzie said. "This project gives us the opportunity to deliver modern industrial product at scale in a location with excellent access to Houston's major transportation corridors."

Market Context: North Houston Industrial Demand

The North/IAH Airport Corridor submarket has emerged as one of Houston's tighter industrial pockets, with vacancy in the high-6% range as of mid-2026 and sustained demand from e-commerce, parcel logistics, and regional distribution users. Net absorption across the North submarket reached approximately 1.4 million square feet in the second quarter of 2026, contributing to broader vacancy compression across the Houston metro.

Houston's overall industrial market recorded roughly 7 to 7.6 million square feet of net absorption in Q2 2026, outpacing new supply deliveries and pushing market-wide vacancy to between approximately 6.7% and 7.2%. Year-to-date absorption for the first half of 2026 reached an estimated 11 to 11.9 million square feet, reflecting sustained occupier demand. Vacancy among larger assets — those exceeding 250,000 square feet — has trended tighter than the overall market average, underscoring the specific supply gap the Rankin Road project is designed to address.

The land assembly required to deliver a nearly 750,000-square-foot footprint in this infill corridor highlights the site scarcity that has characterized the submarket. With limited modern large-block options available near IAH, the project is positioned to attract national retailers, third-party logistics providers, parcel carriers, and large manufacturers requiring scale, clear height, and multi-directional truck access via I-69, Beltway 8, and I-45.

About the Firms

Transwestern is a vertically integrated commercial real estate firm with expertise spanning investment, development, brokerage, and property management. The firm owns, leases, and operates $64 billion in assets across 35 offices nationwide, with a portfolio that includes logistics, multifamily, retail, mixed-use, healthcare, office, data centers, hotel, sports and entertainment, and life sciences properties.

Hanover Company stands among the most active private real estate companies in the United States, with a development and construction focus on high-quality multifamily residential and industrial properties.

Sources

Transwestern — Transwestern Investments and Hanover to Develop 749K SF Industrial Facility in North Houston (Sept. 3, 2026)