Houston, February 18, 2026

Houston’s economic landscape receives a boost with the acquisition of a Tesla battery factory by BentallGreenOak, supported by CalPERS. This investment marks a significant step in enhancing the region’s role in advanced manufacturing and sustainable energy. The 1 million square-foot facility, located in Brookshire, is set to produce Tesla Megapacks for grid energy storage, creating 1,500 jobs by 2028. The partnership signifies private investment confidence in Houston’s business environment, highlighting its entrepreneurial spirit and growth potential.

Houston Gains Tesla Battery Factory with BGO, CalPERS Investment

Houston’s economic landscape continues its dynamic expansion with a significant acquisition in the industrial sector. A partnership fund managed by BGO and supported by CalPERS has acquired the Tesla battery factory near Houston, signaling robust private investment and further cementing the region’s role in advanced manufacturing and sustainable energy solutions.

This strategic move underscores the prevailing confidence in the Houston TX business environment, a testament to its entrepreneurial spirit and the long-term vision of investors. Such large-scale private capital injections highlight Houston’s appeal as a hub for innovation and economic development, offering opportunities that benefit the broader community and reinforce the foundations of regional prosperity.

The transaction is a prime example of how targeted investments can propel growth, drawing on the strength of the Texas market and its supportive framework for businesses. It reflects a positive outlook on the future of energy infrastructure and the resilience of the Houston economic growth trajectory.

Key Acquisition Details and Players

On February 17, 2026, BentallGreenOak (BGO), acting through its Institutional Logistics Partners fund, completed the acquisition of Tesla’s factory in Brookshire, Texas, from Stream Realty Partners. The financial terms of the transaction were not disclosed.

BGO is a global real estate investment management firm known for its diverse investment strategies in various real estate sectors, including industrial properties. The Institutional Logistics Partners fund, which made this acquisition, is one of several real estate partnerships in which the California Public Employees’ Retirement System (CalPERS) has invested. CalPERS, a major U.S. pension fund, committed $500 million to Institutional Logistics Partners, which currently manages a portfolio valued at $4.5 billion. CalPERS has made substantial commitments to climate-related assets, with nearly $60 billion invested as of June 2025, and aims to reach $100 billion by 2030, with real estate investments playing a significant role in this strategy.

The Tesla Megafactory: A Hub for Energy Innovation

The acquired facility, located in Brookshire, Waller County, is approximately 35 to 40 miles west of downtown Houston. This site is dedicated to the production of large-scale industrial batteries known as Tesla Megapacks, designed for grid energy storage, utilizing renewable sources such as wind and solar power.

The facility spans over 1 million square feet and is situated within the Empire West Business Park. Tesla’s investment in this site is considerable, with plans to spend approximately $200 million. This includes $194 million for electrical and HVAC upgrades, as well as $33 million for building improvements, a new heating and cooling system, and the installation of distribution equipment. The Brookshire factory is intended to replicate Tesla’s successful Megafactory operations in Lathrop, California. Production at the Brookshire location is anticipated to commence in late 2026.

Fostering Job Creation and Regional Economic Growth

This major industrial development is poised to be a significant contributor to local employment and Houston economic growth. Tesla has committed to creating 1,500 jobs by 2028. These positions include high-paying roles, with at least 50 jobs projected to offer salaries exceeding $150,000 annually, while other positions will range between $50,000 and $100,000. The company has specific targets for job creation, aiming for at least 375 employees by the end of 2026 and 750 by the end of 2027.

The expansion of advanced manufacturing facilities like the Tesla Megafactory plays a crucial role in diversifying the Houston area’s economy, moving beyond traditional sectors. Such investments attract skilled labor and foster a robust environment for related industries and supporting services, benefiting Houston small business and contributing to the overall prosperity of Waller County and the wider region.

Houston’s Robust Industrial Market and Business Climate

The acquisition aligns with Houston’s consistently strong industrial market performance. In Q1 2025, the industrial market saw an 8.8 million square feet leasing velocity, a 26% increase from Q4 2024, with manufacturing space experiencing a notable uptick. This positive trend continued into Q3 2025, which recorded a leasing velocity of 10.7 million square feet, marking a 19.4% increase from Q2 2025. Manufacturing leasing activity notably surged by 33% during this period. The market also achieved 16 consecutive years of positive net absorption, totaling 1.7 million square feet in Q3 2025, and average rental rates reached a new high of $0.88 per square foot.

The end of 2025 saw Houston TX business activity robust, with 12.6 million square feet of positive absorption and 18.6 million square feet of new industrial space delivered. Port Houston’s handling of 4.3 million TEUs further reinforces the region’s significance as a trade and manufacturing hub. The average triple net (NNN) rent reached $10.67 per square foot in Q4 2025. The Houston metropolitan area’s total employment stood at 3.5 million at the end of Q3 2025, showing a 1.1% year-over-year increase.

Texas: A Favorable Landscape for Entrepreneurs and Investment

Texas has long cultivated a reputation as a highly business-friendly state, drawing both large corporations and ambitious Texas TX entrepreneurs. A key factor is the state’s favorable tax structure, including the absence of a personal income tax and a capped franchise tax, which benefits many businesses.

The state also boasts a streamlined business registration process and minimal licensing requirements, reducing the red tape that can often hinder growth. Additionally, Texas is a Right-to-Work state, providing businesses with flexibility in labor relations. Tax exemptions for manufacturing equipment and incentives for renewable energy further sweeten the deal for industrial and innovative enterprises. While recognized for its pro-business environment, ongoing efforts in regulatory reform could unlock even greater economic potential for the state, with estimates suggesting a significant boost to the state’s economy by 2037 through reduced regulatory burdens. The state’s economic development strategic plan for 2025-2029, “Bigger. Better. Texas.”, outlines a framework prioritizing business expansion, innovation, workforce development, and infrastructure investment.

Future Outlook for Houston’s Energy and Industrial Sectors

The acquisition of the Tesla battery factory near Houston by BGO and CalPERS is more than just a real estate transaction; it’s an affirmation of Houston’s evolving role in the global energy transition. By bringing advanced battery manufacturing to the region, this investment supports the ongoing diversification of Houston TX business away from traditional energy sources toward renewable and sustainable technologies.

This development fosters an ecosystem where innovation thrives, attracting further investment and talent to the area. It showcases how private sector initiative, coupled with a supportive business environment, can lead to significant advancements in infrastructure and technology, ultimately benefiting the community through job creation and sustained Houston economic growth.

Conclusion

The acquisition of the Tesla battery factory in Brookshire by a BGO-managed fund, supported by CalPERS, marks a pivotal moment for Houston’s industrial landscape and its commitment to energy innovation. This significant investment is poised to drive Houston economic growth, create numerous jobs, and enhance the region’s reputation as a hub for advanced manufacturing. It stands as a testament to the effectiveness of private capital in fostering entrepreneurial endeavors and highlights the strategic advantages of the Texas business environment.

As Houston continues to attract forward-thinking enterprises, the community is encouraged to support local businesses and remain engaged in the city’s dynamic economic future. Such developments underscore the importance of policies that promote investment and innovation, ensuring sustained prosperity for all.

Frequently Asked Questions

What was acquired near Houston, TX?

The Tesla battery factory in Brookshire, Texas, was acquired.

Who acquired the Tesla battery factory?

BentallGreenOak (BGO), through its Institutional Logistics Partners fund, acquired the factory from Stream Realty Partners.

When did the acquisition take place?

The acquisition took place on February 17, 2026.

What will the Tesla factory produce?

The Tesla factory will produce large-scale industrial batteries called Tesla Megapacks for grid energy storage, utilizing renewable sources such as wind and solar power.

Where is the factory located?

The factory is located in Brookshire, Waller County, approximately 35 to 40 miles west of downtown Houston.

How large is the Tesla factory?

The factory spans over 1 million square feet.

How many jobs is the Tesla factory expected to create?

The factory is expected to create 1,500 jobs by 2028.

What is the planned investment by Tesla in this factory?

Tesla plans to invest approximately $200 million in the site, including $194 million for electrical and HVAC upgrades, and $33 million for building improvements, a new heating and cooling system, and the installation of distribution equipment.

When is production targeted to begin at the Tesla factory?

Production is targeted to begin in late 2026.

What is CalPERS’ involvement in this investment?

CalPERS committed $500 million to Institutional Logistics Partners, a fund managed by BGO, which made this acquisition.

Key Features of the Tesla Battery Factory Acquisition

Deeper Dive: News & Info About This Topic

HERE Resources

Austin Emerges as a Battery Manufacturing Hub
Conexion Legal Tech Empowers Latino Community in Legal Tech
Elon Musk’s Expanding Texas Portfolio

Author: STAFF HERE HOUSTON TX WRITER

The HOUSTON STAFF WRITER represents the experienced team at HEREHouston.com, your go-to source for actionable local news and information in Houston, Harris County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Houston Livestock Show and Rodeo, Art Car Parade, and Chevron Houston Marathon. Our coverage extends to key organizations like the Greater Houston Partnership and Houston Area Urban League, plus leading businesses in energy and healthcare that power the local economy such as ExxonMobil, Schlumberger, and Houston Methodist. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.