Stream Realty Partners has sold two buildings fully leased to Tesla in Houston's Empire West Business Park to investment firm BGO. The facilities, totaling 1.65 million square feet, are used for manufacturing Megapack batteries. The deal closed on February 5, 2026.
In a transaction highlighting demand for industrial space in Houston's west corridor, Dallas-based Stream Realty Partners sold Buildings 9 and 10 at Empire West Business Park to New York-based BGO. The sale, which closed on February 5, 2026, involves properties totaling 1.65 million square feet, both fully occupied by Tesla for the production of Megapack batteries—utility-scale storage units that support power grids and balance renewable energy.
Building 9, measuring 1.04 million square feet at 111 Empire Boulevard, was leased to Tesla in late 2022. Building 10, at 616,463 square feet on 103 Empire Boulevard, was completed and leased the following year. Empire West Business Park covers 300 acres and includes 10 warehouses amounting to nearly 4 million square feet. It represents Stream's largest project to date, located west of Katy along Interstate 10, with other tenants such as PepsiCo, Amazon, and Costco.
Tesla's involvement includes ambitious expansion plans. During a March 2025 Waller County Commissioners Court meeting, a company representative indicated intentions to replicate its Megafactory model from Lathrop, California, which produces 10,000 Megapacks annually or 40 gigawatt-hours of storage. Under a tax abatement agreement from early 2025, Tesla committed to investing approximately $200 million, including $44 million in real property improvements and $150 million in manufacturing equipment for Building 9, plus $5 million in warehouse equipment for Building 10. In return, the company agreed to create 1,500 jobs by the third year of the agreement, with Waller County providing a 60 percent tax abatement on the improvements and buildings.
This sale follows Stream's October 2025 disposition of three other Empire West buildings, totaling 1 million square feet, to NorthPoint Development.
