XSpace, an Austin-based developer, announced on Apr. 13 that it has secured a $29 million construction loan to build an 84-suite property in The Woodlands. Marcus & Millichap arranged the financing for the project, with Adam Mengacci, Travis Headapohl and Matt Polci of its IPA Capital Markets team representing XSpace.
The new development is located at the intersection of Six Pines Drive and Lake Woodlands Drive in The Woodlands Town Center. Architect Francisco Gonzalez Pulido designed the property.
The suites are described as “industrial condos” and “lifestyle industrial,” intended for uses such as showrooms, satellite offices, podcasting studios, luxury car storage, personal gyms or “man caves.” While buyers can purchase and customize their suites, they are not intended for residential use. XSpace said in a statement that its concept appeals to “young entrepreneurs who want to own and customize their first office, as well as a more mature owner who might want to scale a business or invest in multi-use storage spaces.”
XSpace’s existing Austin location offers similar suites ranging from 300 square feet to 3,000 square feet with drive-up access. That property also features amenities like a lounge area, commercial kitchen, conference rooms and restrooms with showers. Suites there are priced between $338 per square foot and $461 per square foot.
The growing interest in XSpace reflects rising demand for non-traditional industrial space outside major industrial parks. The company first launched in Australia before expanding into Texas; founder Byron Smith previously said he chose Austin due to demographic similarities with Australia.
Other companies have entered this market segment as well. Maryland-based WareSpace recently announced plans to expand its presence in Dallas-Fort Worth by converting former retail stores into small rental industrial suites.
