Key Takeaways
- • Hines is developing six industrial projects totaling more than 2.3 million square feet across Houston, Phoenix, Florida's Space Coast and California's Fremont-Newark corridor, betting on U.S. manufacturing growth.
- • Hines expects U.S. manufacturing construction spending to reach $1 trillion by 2030, according to CoStar News, and has identified Houston, Phoenix and San Jose as its top three markets for new industrial buildings, per Realty News Report.
- • In Houston, three buildings are in the pipeline, including Phase II of Lone Star Logistics Park adding 476,063 square feet, with the full campus set to span 1.1 million square feet.
- • Hines paid $28.6 million for the Cherry Point industrial warehouse in Newark, which comes with 8,000 amps of electrical power, according to the San Francisco Business Times.
- • Hines projects reshoring and federal incentives will drive a 35 percent increase in U.S. warehouse demand over the next five years, and reported $91.8 billion in assets under ownership and operation as of mid-2025.
Summary
Hines, the Houston-based real estate firm, is building out a portfolio of six industrial projects totaling more than 2.3 million square feet in Houston, Phoenix, Florida's Space Coast and California's Fremont-Newark corridor. The strategy rests on expectations of a manufacturing construction boom. According to CoStar News, Hines expects U.S. manufacturing construction spending to reach $1 trillion by 2030. A brief from CRE Daily similarly projects roughly $1 trillion in total U.S. manufacturing construction spending between 2026 and 2030.
Within that broader trend, Hines's research identifies Houston, Phoenix and San Jose as the three top markets most likely to need new industrial buildings, according to Realty News Report. Houston developer Robert Clay told the outlet that 30 percent of new business announcements in the city in 2025 came from manufacturing companies. In Houston, Hines has three buildings in the pipeline: the 270,900-square-foot Aero Logistics Center near Hobby Airport, with groundbreaking slated for the third quarter; Mills 249 Logistics, a 200,200-square-foot front-load building at 8887 Mills Road, expected to complete in September; and Phase II of Lone Star Logistics Park at 2304 Reed Road, adding 476,063 square feet across two buildings, expected to deliver this fall.
In Arizona, JLL announced in April that it arranged joint-venture equity for Hines on Cactus 303, a three-building, 572,282-square-foot Class A industrial project in Surprise on 36.8 acres in the Loop-303 corridor. In Florida, Hines and KEY Group broke ground on Space Coast Innovation Park Phase I in Titusville. The first two phases are planned to deliver more than 1.1 million square feet across five buildings, with Phase I comprising three rear-load buildings totaling more than 639,000 square feet and scheduled for delivery in July 2027.
In California, the San Francisco Business Times reported that Hines paid $28.6 million for the Cherry Point warehouse at 38083 Cherry Street in Newark. The property has 8,000 amps of electrical power, which Hines links to its thesis that energy capacity increasingly shapes manufacturer site selection and competes with data center demand. Hines also projects that reshoring and federal incentives will drive a 35 percent increase in U.S. warehouse demand over the next five years. As of mid-2025, the firm reported owning and operating $91.8 billion of assets across property types. According to research cited by IREI, Hines expects capital, tenant demand and rent growth to concentrate in markets with strong manufacturing ecosystems, skilled workforces and reliable infrastructure.
Within that broader trend, Hines's research identifies Houston, Phoenix and San Jose as the three top markets most likely to need new industrial buildings, according to Realty News Report. Houston developer Robert Clay told the outlet that 30 percent of new business announcements in the city in 2025 came from manufacturing companies. In Houston, Hines has three buildings in the pipeline: the 270,900-square-foot Aero Logistics Center near Hobby Airport, with groundbreaking slated for the third quarter; Mills 249 Logistics, a 200,200-square-foot front-load building at 8887 Mills Road, expected to complete in September; and Phase II of Lone Star Logistics Park at 2304 Reed Road, adding 476,063 square feet across two buildings, expected to deliver this fall.
In Arizona, JLL announced in April that it arranged joint-venture equity for Hines on Cactus 303, a three-building, 572,282-square-foot Class A industrial project in Surprise on 36.8 acres in the Loop-303 corridor. In Florida, Hines and KEY Group broke ground on Space Coast Innovation Park Phase I in Titusville. The first two phases are planned to deliver more than 1.1 million square feet across five buildings, with Phase I comprising three rear-load buildings totaling more than 639,000 square feet and scheduled for delivery in July 2027.
In California, the San Francisco Business Times reported that Hines paid $28.6 million for the Cherry Point warehouse at 38083 Cherry Street in Newark. The property has 8,000 amps of electrical power, which Hines links to its thesis that energy capacity increasingly shapes manufacturer site selection and competes with data center demand. Hines also projects that reshoring and federal incentives will drive a 35 percent increase in U.S. warehouse demand over the next five years. As of mid-2025, the firm reported owning and operating $91.8 billion of assets across property types. According to research cited by IREI, Hines expects capital, tenant demand and rent growth to concentrate in markets with strong manufacturing ecosystems, skilled workforces and reliable infrastructure.
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