Fort Street Partners, in joint venture with Cumming Capital Management, has acquired Lehi Spectrum I and II, Utah Business reported. The Boyer Co. previously owned the 257,000-square-foot Class A office building duo, located in Lehi, Utah.

Woodley Real Estate and Newmark brokered the deal on behalf of the seller.

Lehi Spectrum I is at 1650 W. Digital Drive, while Lehi Spectrum II is at 1550 W. Digital Drive. Completed between 2018 and 2020, both properties were developed by The Boyer Co. as Podium’s headquarters, which currently occupies space at Lehi Spectrum I. The second building’s tenant roster includes Vivint, Waystar and DevMountain.

READ ALSO: Beyond Aesthetics: Prioritizing Well-Being in Workplace Design

Situated on a 14-acre lot across the Interstate 15 corridor, the properties allow easy access through the Silicon Slopes tech hub. Provo, Utah, is 19 miles away and Salt Lake City is 26 miles from Lehi Spectrum. Meanwhile, Salt Lake City International Airport is some 30 miles away.

Both office buildings rise five floors and include 25,000-square-foot floorplates, three passenger elevators each and a total of 1,159 vehicle parking spots, according to CommercialEdge. Amenities feature a fitness center, locker rooms with showers, a daycare, pickleball courts, an open space auditorium and food services.

Salt Lake City’s rise in office transactions

Office sales in Salt Lake City generated $472 million in 2024, according to fourth quarter Cushman & Wakefield report on the metro’s investment activity. There were 46 office assets totaling 2.4 million square feet that traded at an average sale price of $202 per square foot.

The investment activity increased since the $370 million recorded during the previous year, but the Salt Lake City metro is also expected to continue to see a rise in discount deals, reflecting current national office real estate trends.

The post Fort Street JV Picks Up Office Duo in Salt Lake City appeared first on Commercial Property Executive.

The significant financing deal comes as the AI data center demand grows. In January, J.P. Morgan provided a $2.3 billion loan to the joint venture of Blue Owl Capital, Crusoe Energy Systems and Primary Digital Infrastructure for the development of a build-to-suit data center project in Abilene, Texas. The campus will be designed, developed and operated by Crusoe.

Novva’s Salt Lake City campus, up close

Construction of the second phase at Novva’s Salt Lake City campus began in December 2023 and is slated for completion in 2026. Phase 3 construction began in January 2024 and is also expected to deliver by 2026. Both phases will feature 318,000-square-foot data centers and each will have the capacity to produce 72 megawatts of critical IT load.

The 175 megawatt campus, which will span about 1 million square feet when completed, was fully leased in 2023 to a leading global tech company. The first phase began operations in 2023 and has the ability to operate without water year-round and cool with ambient air. When fully operational, the complex is expected to consume approximately 84 percent less water than similar data centers in the region.

READ ALSO: From Data Center YIMBY to NIMBY?

The project is taking shape at 6477 Wells Park Road, roughly 18 miles from Salt Lake City International Airport and 22 miles from downtown Salt Lake City. The property has access to four long-haul fiber routes and includes a 200 megawatt substation with N+1 redundancy.

The location is attractive for data center operations because it offers low-cost power, low disaster risk, low latency, no sales tax on equipment purchases and a high-altitude cold desert climate, Novva CEO Wes Swenson said in prepared remarks.

J.P. Morgan acted as lead arranger and Starwood Property Trust acted as arranger for the financing. Simpson Thacher & Bartlett LLP served as legal counsel for CIM Group and Novva Data Centers.

Data center growth

The Salt Lake City property is Novva’s flagship. The firm also operates data centers in Colorado Springs, Colo., and Las Vegas. Other developments will come online in Reno, Nev., San Francisco and Mesa, Ariz.

Novva announced plans for the Mesa campus in August 2024. The company is expected to invest more than $3 billion over the next decade on the 160-acre property marking its first foray into Arizona. The first phase will have 96 megawatts of capacity and is slated for completion in late 2026.

The post CIM, Novva Land $2B for Data Center Development appeared first on Commercial Property Executive.

The Metroplex’s office sector remained steady in 2024, with more than 2.9 million square feet under construction and 2.8 million square feet delivered across 18 properties, CommercialEdge data shows. Additionally, Dallas office construction starts picked up last year, as 1.7 million square feet broke ground, marking a 50 percent increase year-over-year.

However, the metro still faces a few challenges. The vacancy rate rose 330 basis points year-over-year as of January, clocking in at 24 percent. Additionally, as loan delinquencies increased, property owners have been more frequently selling their underperforming office buildings at a discount.

Construction activity remains above national average

Dallas’ office construction pipeline at the end of 2024 totaled more than 2.9 million square feet, accounting for 1 percent of the metro’s inventory. That was 20 basis points higher than the national threshold, as well as peer markets such as Houston (0.8 percent) and Atlanta (0.5 percent) but lagged behind Austin (3.7 percent).

When taking into account projects in the planning stages as well, the market’s share jumped to 4.6 percent. Additionally, Dallas’ office construction starts in 2024 amounted to 1.7 million square feet from the 17 projects that broke ground. That represents a more than 50 percent increase year-over-year.

In April, a joint venture between Pacific Elm Properties and KDC obtained $290 million for the construction of Parkside Uptown, a 500,000-square-foot development in Dallas. The developer broke down on the project in 2023 using funds from a $300 million note and expect to deliver it in 2027.

Office deliveries drop year-over-year

Dallas’ office construction activity led to 18 properties coming online in 2024, which totaled more than 2.8 million square feet. That accounted for 0.8 percent of its total stock, slightly above the 0.7 national average. However, that figure was still almost 30 percent lower year-over-year.

Among peer markets, the metro had the largest share of office space delivered. Atlanta and Austin (2.2 million square feet each) were slightly behind, while

Last quarter, Ryan Cos. completed Ryan Tower, a 409,000-square-foot office building in Plano, Texas. The 23-story high-rise, which was already more than 50 percent leased at the time, is part of the $3 billion mixed-use development Legacy West.

Office-to-residential conversions on the rise

Investors remain keen on office-to-residential conversions due to ongoing challenges in the office sector, such as rising vacancy rates. CommercialEdge’s Conversion Feasibility Index, powered by Yardi, assesses the practicality of repurposing buildings based on factors like walkability, age, and floorplate shape.

The CFI score classifies buildings into three tiers, with Tier I being the most suitable for conversion. In the Metroplex, there are 43 office properties totaling 4.8 million square feet in this category and 353 properties spanning 43.1 million square feet in the Tier II category.

At the end of last year, Pacific Elm Properties completed the office-to-residential conversion of 14 stories within Santander Tower, a 50-story downtown building. Despite the building having a lower CFI, the developer repurposed the space into 291 units.

Dallas office prices below the national average

After ranking fourth nationally in terms of sales in our last market update, Dallas saw a decrease in investment volume. The metro registered $1.5 billion in assets trading last year, with the average price per square foot standing at $107, considerably lower than the $174 national average.

However, only gateway markets surpassed the Metroplex, with peer metros such as Phoenix and Atlanta ($1.4 billion each) ending the year with less sales. Manhattan continued to lead nationally with $4.9 billion.

In one of the largest deals of the year, Provident Realty Advisors acquired Lakeside Campus, a two-building office campus totaling 807,354 square feet in Richardson, Texas. Trigild sold the 1991-completed asset that features a 16-story building and a four-story low-rise.

Vacancy rate continues to increase

Dallas’ vacancy rate at the end of the January clocked in at 24 percent, 330 basis points higher year-over-year, and considerably above the 19.7 percent national average. San Francisco (29.3 percent) continued to have the most vacant space, followed by Austin (27.8 percent).

At the end of the year, Merit Energy Co. signed a 104,034-square-foot lease at Nuveen Real Estate’s Two Lincoln Centre in Dallas. The firm will mover from a 127,000-square-foot space that is less than 2 miles from the new location.

The metro’s listing rate as of January was $31.4, a 14.9 percent increase year-over-year. Among peer markets, Austin ($45.8), Atlanta ($32.3) and Charlotte ($35.9) fared better, while Houston ($30.1) trailed behind.

The Metroplex’s coworking inventory grows

The Metroplex’s coworking inventory as of January reached 5.2 million square feet across 284 locations. That accounted for 1.8 percent of the market’s total office stock, 20 basis points under the national average.

Miami (3.8 percent) continued to have the largest share of coworking space nationally. Among peer markets, Dallas was on par with Houston and Austin, while Atlanta (2.2 percent) fared better.

Regus remained the largest coworking space provider in the Metroplex with 598,606 square feet across 35 locations. The company was followed by Lucid Private Offices (414,617 square feet), Caddo (274,500 square feet) and HQ (254,757 square feet).

Last year, Workbox entered the Metroplex’s coworking sector, opening a 50,000-square-foot shared office space location in downtown Dallas, at Asana Partners’ Victory Plaza. WeWork previously occupied the location but failed to renegotiate the leasing terms following its Chapter 11 exit.

The post Dallas Office Construction Starts Ramp Up appeared first on Commercial Property Executive.

M2G Ventures has purchased Inwood Design Center, a 14-building, 740,000-square-foot, mixed-use asset in Dallas including retail, showroom and light industrial space. Hines previously owned the park, according to CommercialEdge information.

Hines had acquired the campus in 2019 from Vantage Cos., with plans at the time to reposition the property through a revamp to the buildings’ facade, signage, lighting and landscaping. Two years later, the park became subject to a $44 million note with a maturity date set for 2027 issued by AIG, the same source shows.

M2G also plans to further improve the park with overhauls to the branding, art and signage, including upgraded exteriors, storefronts, parking, landscaping, lighting and public art, among other enhancements.

READ ALSO: Why Mixed-Use Developments Are All About the Right Synergies

The buildings—completed between 1961 and 1978—were 93 percent leased at closing. Tenants include furniture retailer Crate & Barrel, logistics company White Glove Storage and Delivery, as well as 3PL firm Granimport USA, to name a few.

Located on 38 acres at 1110 Inwood Road, the infill mixed-use property is less than 5 miles from downtown Dallas and roughly 15 miles southeast of the Dallas Fort Worth International Airport.

Bullish on the West Brookhollow submarket

Inwood Design Center is in the West Brookhollow submarket, which has a 7 percent vacancy rate across its 43 million-square-foot industrial inventory and a 7 percent average annual rent growth trailing five years.

Also within the same submarket, M2G owns Archetype, another mixed-use property featuring flex, showroom, retail and shallow-bay industrial space. The company overhauled the park’s six buildings with a series of renovations similar to the ones planned for Inwood Design Center.

M2G leans into infill acquisitions

Inwood Design Center’s acquisition delineates M2G’s continuous approach to acquire infill industrial properties on an institutional scale, according to a company statement.

This purchase is also the latest in M2G’s shopping spree. During the past three months, the company acquired a 50,000-square-foot, mixed-use asset in Austin, Texas, and two industrial parks in Dallas, encompassing 188,000 and 215,000 square feet. The purchases were made through M2G Venture’s general partner equity fund, Grey Swan I.

The post Hines Sells Dallas Mixed-Use Asset appeared first on Commercial Property Executive.

The joint venture of Hines and Ivanhoé Cambridge has received $450 million in refinancing for Texas Tower, a 1.2 million-square-foot high-rise in Houston. Wells Fargo and Morgan Stanley provided the loan package, in a deal arranged by Newmark on behalf of the owners.

The 47-story building came online in 2021 with the aid of a $317.6 million construction loan provided by New York Life Insurance Co. back in 2018, CommercialEdge shows. At that time, Texas Tower was the largest office project under construction in Houston. The property later became subject to a four-year $267 million note, originated by Ivanhoé Cambridge in 2023, according to the same source.

READ ALSO: Top 5 LEED Platinum-Certified Buildings in the US

This loan marks the first time in two years when a multi-tenant office building outside New York City has secured financing in the CMBS single-asset, single-borrower market, stated Newmark Co-President Jonathan Firestone in prepared remarks.

A high-rise in downtown Houston

Located at 845 Texas Ave., Texas Tower is in Houston’s central business district and has access to interstates 45 and 10. The George Bush Intercontinental Airport is some 20 miles away.

The building was 95.0 percent leased at the time of the deal and serves as Hines’ global headquarters. Its tenant roster also includes Vinson & Elkins, Morgan Stanley, Cheniere Energy Inc. and Clifford Chance, among others.

The LEED Platinum-certified Texas Tower features floorplates ranging between 30,438 and 31,255 square feet, 24 passenger elevators and 1,500 car parking spaces. Amenities include a conference center, rooftop garden and fitness center.

Newmark Co-Heads of Global Debt & Structured Finance Jordan Roeschlaub and Jonathan Firestone, Vice Chairmen Clint Frease and Blake Thompson, Managing Director Travis Bailey, Director Peter Mavredakis and Associate Director Tim Polglase secured the financing package.

Newmark landed the number one position in Commercial Property Executive‘s 2025 top commercial mortgage brokers. The firm provided loans totaling more than $48.4 billion during the 12 months ending in September 2024 and increased its originations volume by 79.6 percent year-over-year.

The post Hines, Ivanhoé Land $450M Refi for Houston Trophy Tower appeared first on Commercial Property Executive.

Insurance brokerage company Lockton has signed a 52,961-square-foot office lease with Granite Properties and Highwoods Properties at Granite Park 6, in Plano, Texas. The company’s corporate relocation is scheduled for 2026.

Cushman & Wakefield, together with Stream Realty Partners, worked on behalf of the tenant. An in-house team represented the ownership in the lease deal.  

Lockton plans to move 9 miles south from its current office location at Dallas Parkway where it leased 18,000 square feet. The company will occupy two floors at Granite’s 422,109-square-foot building and will join Atlantic Aviation and Stonebriar Commercial Finance in the property’s tenant roster, CommercialEdge shows.

Lockton’s current deal quickly follows the company’s signing of a 100,000-square-foot lease earlier this month at the 15-story Victory Commons One, Dallas Business Journal reported.

As of February, the office vacancy rate in Dallas clocked in at 24.0 percent, up 330 basis points over a 12-month period, according to a recent CommercialEdge report, and was higher than the 19.7 percent national average rate.

A newly LEED Silver-certified building

Located at 5525 Granite Parkway, the property is just off Texas State Highway 121 and 25 miles north of downtown Dallas. The office building is also some 20 miles northeast of Dallas-Fort Worth International Airport.

Completed in 2023, the 19-story tower is part of the 90-acre mixed-use Granite Park. Amenities at the LEED Silver-certified asset include a 150-seat lecture hall, three conference centers, a terrace connecting to a fitness studio and indoor customer lounge on the sixth floor, as well as 35,000 square feet of ready suites ranging from 1,500 to 5,500 square feet. 

Cushman & Wakefield Executive Managing Director Mike Mayer and Managing Director Josh Goldsmith, together with Stream Realty Partners Managing Director Dan Harris and Executive Vice Chairman Randy Cooper worked on behalf of Lockton.

Granite Park 6 in-house leasing team led by Directors Robert Jimenez and Burson Holman, and Leasing Manager Elizabeth Fortado represented the ownership.

The post Lockton Signs 53 KSF Office Lease at Dallas Tower appeared first on Commercial Property Executive.

Apple is working on a 250,000-square-foot AI server manufacturing facility in the Houston area as part of a four-year, $500 billion investment in the U.S. Completion is scheduled for 2026.

The firm will use the factory to produce servers for Apple Intelligence, its AI system for iPhone, iPad and Mac computers, previously manufactured outside the country.

Apple’s $500 billion plan also includes hiring around 20,000 new employees across the U.S. Targeted sectors feature R&D and software development, as well as AI and machine learning.

READ ALSO: Industrial Real Estate’s Future Depends on Adaptability

The technology giant also intends to grow its U.S. Advanced Manufacturing Fund from $5 billion to $10 billion. The fund’s expansion includes a multibillion-dollar commitment from Apple to produce advanced silicon in TSMC’s Fab 21 facility in Arizona, where it already employs more than 2,000 workers.

Also part of the $500 billion investment, Apple will establish a new manufacturing academy in Michigan and expand its R&D investments to advance innovative fields like silicon engineering. The firm will also expand its data center capacity in North Carolina, Iowa, Oregon, Arizona and Nevada.

Long-time partners

Apple will develop the new factory together with long-time partner Foxconn, according to Reuters. Last year, the subsidiary of Taiwan-based Hon Hai Precision Industry Co. acquired an industrial facility and additional land to boost its AI server production in Houston. This expansion project is expected to bring $225 million in capital investment.

Foxconn also owns a 3,000-acre, multi-building development in Wisconsin dubbed Science and Technology Park, which focuses on advanced manufacturing and data infrastructure production, and a 6.2 million-square-foot industrial facility in northeast Ohio, used for electric vehicle production.

One of the strongest manufacturing markets

Houston is home to more than 7,000 manufacturers with a total annual production worth more than $75.1 billion, according to the Greater Houston Partnership. The metro also ranks second in the U.S. for manufacturing GDP.

Houston’s industrial pipeline at the end of last year reached 12.4 million square feet, the third largest nationally, surpassed only by Phoenix (22.4 million square feet) and Dallas (18.9 million square feet), according to the latest CommercialEdge report. The market’s vacancy rate clocked in at 7.2 percent as of December, 80 basis points below the national average.

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Standard Real Estate Investment Partners has joined forces with Brennan Investment Group to build Laredo Pinnacle Development II, a 433,000-square-foot industrial project in Laredo, Texas.

The cross-dock development will rise near Mines Road in the Pinnacle Industry Center, a roughly 1,400-acre master-planned industrial park located about 7 miles from World Trade Bridge and roughly 14 miles from Columbia Bridge.

The speculative development will allow for either single- or multi-tenant usage. It’s set to feature four drive-in doors, two truck courts, 156 dock doors, as well as 197 trailer parking spots.

This isn’t Brennan’s first Laredo project. Last year, the company teamed up with Grandview Partners to develop a 393,796-square-foot industrial facility also within the Pinnacle Industry Center.

Brennan launched its U.S. Border division in 2022 to invest across the entire U.S.-Mexico boundary, from San Diego to Brownsville, Texas. The firm looks to capitalize on the nearshoring phenomenon, Managing Principal Troy MacMane said in prepared remarks.

Industrial development near U.S.’s top trade port

In 2024, Laredo took the title for the number one port nationwide with $339 billion in trade, a figure up 5.9 percent year-over-year, according to U.S. Census data analyzed by WorldCity. The area’s constant growth spurred the city to earmark more than $2 billion in road and infrastructure improvements over the next two decades.

Development in this emerging industrial market is booming. Last May, SE Legacy Development broke ground on the first phase of a $7.4 billion master-planned project. And six months later, Realterm and Titan Development announced their intention to develop a 440,300-square-foot facility in this city.

The post Brennan JV to Build Industrial Project Near US-Mexico Border appeared first on Commercial Property Executive.

Dallas-based Provident Industrial is expanding Gateway Logistics Park in El Paso, Texas, with the development of Phase 4—three Class A industrial buildings totaling 497,280 square feet. The first three phases comprised three buildings with a total of 921,759 square feet and have since been sold.

Construction has already begun on Phase 4, which is located 7.5 miles north of the Ysleta-Zaragoza Port of Entry in Juarez, Mexico. The industrial park also has direct access to Loop 375, which offers connectivity to Interstate 10.

The three new assets are taking shape just east of the initial phases. When complete, Buildings 4 and 5 will each feature 147,420 square feet and a shared 205-foot truck court. Building 6 will have 202,440 square feet and feature a 130-foot truck court and 44 trailer parking stalls.

READ ALSO: Top 10 Markets for Industrial Deliveries

Harvey Cleary serves as general contractor, with Pritchard Associates overseeing construction management. Provident Managing Director Case Van Lare and Chris Martin, director of Southwest Industrial Development & Acquisitions, are leading the project.

The developer sold the property’s Buildings 1 & 2 to EQT Exeter in August. Building 1, which has 308,200 square feet, was completed in November 2023, while the 267,100-square-foot Building 2 came online in April 2024. The 345,394-square-foot Building 3 was also acquired by EQT in August.

Other Provident deals

Last month, Provident broke ground on a fully entitled industrial site at 500 E. Bardin Road in Arlington, Texas, in the heart of the Dallas-Fort Worth metro. The 161,408-square-foot A20 Logistics Center is scheduled for delivery in the first quarter of 2026.

Also in January, the developer sold two industrial buildings in Plano, Texas, to Rosewood Property Co. Delivered in 2021, the facilities were part of the second phase of Plano Commerce Center development that totaled 300,000 square feet. Building C had changed hands in June.

And in December, Provident sold the newly built Hall Road Distribution Center in Houston to David Wang and Yong Lin, owners of the local seafood logistics company, Ocean Kingdom. The 139,000-square-foot asset is just south of Hobby Airport along Beltway 8, offering direct access to Interstate 45 South.

The post Provident Industrial Breaks Ground on Phase 4 of El Paso Project appeared first on Commercial Property Executive.

LBA Realty, of Chicago, was the seller, according to information provided to Commercial Property Executive by CommercialEdge.

The two assets are Buildings D and E, at 16000 and 15716 Wolff Crossing, respectively. The assets were built in 2021. Both feature a 36-foot clear height, excess trailer parking, ESFR sprinklers and multiple points of ingress and egress.

They are fully occupied by three tenants, according to PCCP. Among these, information from CommercialEdge lists CEVA Logistics at 16000 Wolff Crossing and LBA Logistics at 15716 Wolff Crossing. A PCCP spokesperson was unable to provide additional information.

CEVA Logistics is one of the largest 3PLs and was purchased in 2019 by shipping titan CMA CGM, based in Marseille, France. The company’s headquarters building there was designed by renowned architect Zaha Hadid.

The AllianceTexas master plan

Elizabeth Creek Gateway is 20 miles north of downtown Fort Worth in the 27,000-acre AllianceTexas master-planned development. Features of use to warehouse/distribution tenants in AllianceTexas include two Class I rail lines (BNSF Railway and Union Pacific), a BNSF intermodal facility, a cargo airport (Perot Field Fort Worth Alliance Airport), FedEx and UPS sort hubs, and an Amazon air hub, as well as major thoroughfares connecting to the Greater DFW MSA and elsewhere.

In addition, Elizabeth Creek Gateway is 20 miles west of Dallas Fort Worth International Airport and 20 miles north of Fort Worth Meacham International Airport.

WPT Capital Advisors focuses on the U.S. industrial warehouse and distribution sector and currently manages about $3 billion of assets on behalf of various global investment partners.

Vacancy and rents both rise

Just last month, Alterra IOS grew its Metroplex industrial portfolio through the acquisition of four industrial outdoor storage properties totaling about 35 acres.

North Fort Worth, along with South Dallas, has been an active industrial space submarket within Dallas–Fort Worth, according to a fourth-quarter report from Marcus & Millichap. Together, the two areas added 25.5 million square feet over the 12 months through June 2024, boosting supply by 4.8 percent.

However, Marcus & Millichap reported that “nine of 10 submarkets had year-over-year vacancy increases, with the sharpest climbs recorded in North Fort Worth and DFW Airport.”

Still, of the six submarkets that have more than 100 million square feet of inventory, annual rent growth was the strongest in North Fort Worth and South Stemmons, also according to Marcus & Millichap.

The post PCCP Funds $72M Loan for 1 MSF Warehouse Acquisition appeared first on Commercial Property Executive.

After years of accelerated expansion, the U.S. industrial sector is now moving toward a more sustainable growth pace. Although the macroeconomic context could pose challenges, specific markets will likely continue to outperform.

One such market is Dallas-Fort Worth, which had 18.9 million square feet of industrial space underway as of December, second only to Phoenix with 22.4 million square feet under construction, a recent CommercialEdge report shows.

The metro was also among the country’s top markets for industrial deliveries in 2024. Demand for such assets in North Texas is mainly supported by the surge in population, steady job creation and the more affordable cost of living compared to other parts of the country.

Commercial real estate investment and development firm Holt Lunsford Commercial has been active in this area since 1993. Recently, the company completed Gateway Crossing Logistics Park, a 127-acre project in Forney, Texas, developed in partnership with Principal Asset Management. The three-building campus encompasses almost 1.8 million square feet of leasable space. Commercial Property Executive asked Managing Principal Canon Shoults his views on the prospects for industrial in north Texas.

READ ALSO: Industrial Real Estate’s Future Depends on Adaptability

How is the demand for industrial properties in Dallas-Fort Worth reflected in your portfolio?

Shoults: The growth of Holt Lunsford Commercial’s Dallas-Fort Worth industrial leasing and property management business has been lockstep with the surge in the industrial market here. Since 2020, the asset class as a whole has been the benefactor of the perfect storm in the North Texas area. The region is also strategically located to service several parts of the U.S., which is only compounded with our major international airport and multiple intermodal rail locations for both BNSF and Union Pacific.

Which submarkets in the area are currently more in demand and why?

Shoults: North Fort Worth and South Dallas represent the two submarkets with the majority of the bulk product. Subsequently, these two submarkets represented almost 70 percent of the overall market-wide lease absorption. Both offer access to key distribution routes, labor markets and rail intermodals. While still a very healthy overall industrial market, 2024 saw a decline in market-wide leasing activity. Much of this situation can be attributed to tenant uncertainty throughout the year related to the presidential election and interest rates. 

Considering the current economic climate, how do you expect the industrial market in north Texas to evolve?

Shoults: Forecasting into 2025, we expect the overall Dallas-Fort Worth industrial market to remain in demand, albeit at historical norms rather than unprecedented growth. However, rent growth is expected to slow or stall in some pockets due to current vacancy from recent deliveries. Manufacturing tenants, foreign companies and 3PL users will continue to be among the key drivers of absorption, as the region’s strategic location and transportation infrastructure continue to attract a diverse mix of businesses.

Despite the pre-COVID-19 normalization, we expect the region to outperform other parts of the country in 2025 as it continues to be the biggest benefactor of population growth, a favorable business climate and large-scale relocation efforts into the market.

What do prospective tenants look for when they choose to lease space at industrial facilities?

Shoults: In today’s market, understanding the tenant’s requirements is a must. This includes understanding their power needs, clear height, racking, office finish and parking needs.

For example, the Dallas-Fort Worth market is attracting more manufacturing-oriented tenants that need heavy power. There are important time and cost factors to discuss in those cases. In 2025, there will be increased demand from foreign companies and manufacturers. Tenants will continue to value Dallas-Fort Worth’s robust workforce availability and labor pools.

Tell us more about the industrial portfolio you manage and the ways you differentiate your properties in this competitive market.

Shoults: My team operates with a unique service philosophy that we’ve coined as our “10 Commandments of Industrial Leasing.” These principles guide every decision and help us create value for our clients. These “commandments” anchor how we operate and cover everything from how to make a standout first impression to what meaningful client follow-up looks like.

Another principle we follow is to ask thoughtful questions. We dig deep to understand the tenant’s needs and to thoughtfully sell the space. One of those key questions is: What are the drivers in selecting the right location? Details matter when helping a prospective tenant envision their future in your space. Understanding the details allows a brokerage team to maximize the value of the listing and formulate the best recommendation for the building owner for a shot at winning the deal. 

READ ALSO: Dallas Industrial Sales Take the Lead

How do you plan to expand your industrial footprint?

Shoults: HLC is doubling down on our relationships with key institutional owners. There is no shortage of institutional capital in today’s market, and the provider that can best service the market and create opportunities for the capital will continue to experience growth.

Development opportunities will continue to drive our business and identifying growing areas to build more industrial product is a priority. Additionally, identifying development opportunities allows us to partner with our clients and provide them opportunities to also expand their footprints.

What’s your outlook on the industrial sector for 2025 and beyond? Are there any emerging trends you’re keeping an eye on?

Shoults: As the Dallas-Fort Worth industrial market continues to evolve, we are seeing tenant needs and profiles change. Our market is evolving to attract more manufacturing uses and growing beyond just a distribution market. This also means that tenant needs are changing and in the coming years we anticipate access to power and fully climate-controlled facilities. A focus on functional industrial facilities will become a key factor when a tenant identifies a new facility.

The post Q&A: What’s Driving North Texas Industrial Demand? appeared first on Commercial Property Executive.

New York Life Real Estate Investors has sold 515 Post Oak, a 274,583-square-foot, Class A office building in Houston, to Dallas-based EY Ventures LLC. JLL worked on behalf of the seller and procured the buyer. 

New York Life REI came into possession of 515 Post Oak in 2022, according to CommercialEdge information. The previous owner, Spear Street Capital, had defaulted on the $44.5 million loan provided by the lender in 2019.

The property covers a 3-acre site at 515 Post Oak Blvd., east of Houston’s 610 West Loop. The location is also near interstates 10 and 69. Downtown Houston is some 8 miles east away.

Completed in the 1980s, the 12-story building has since undergone renovations worth more than $1 million. Improvements included upgrades to the fitness center, tenant lounge, onsite cafe, conference areas and parking. The mid-rise was awarded the LEED-Silver certification 10 times, most recently in 2023. 

The tenant roster features TopSpot, Greater Houston Community Foundation, Luxe Portfolio, Edge Realty Partners and Shale-Inland Holdings LLC. The building was 74 percent leased at the time of sale.

Senior Managing Director Jeff Hollinden and Managing Director Kevin McConn led the JLL Capital Markets Investment Sales and Advisory team representing the seller. 

Houston’s office investment volume reached $940 million year-to-date as of November 2024. Assets traded at $107 per square foot, below the national average of $179, a recent CommercialEdge report shows.

The post New York Life Division Sells Houston Office Asset appeared first on Commercial Property Executive.

James Campbell Co. has acquired the 663,882-square-foot Beltway Crossing Northwest industrial park in Houston. The deal also included a 7.4-acre land parcel, which may be developed into a 150,000-square-foot project. BGO previously owned the fully leased campus, CommercialEdge data shows.

In 2019, Sun Life Financial acquired a majority stake in both Bentall Kennedy and GreenOak Real Estate, merging the two entities into BGO. The resulting company assumed ownership of all existing assets throughout the U.S., including Beltway Crossing Northwest.

The property last traded in 2016, when Panattoni Development sold the park, according to CommercialEdge. That same year, the campus became subject to an acquisition loan of $30.1 million held by State Farm with a maturity date set for 2028.

READ ALSO: 5 Promising Opportunities in an Uncertain Market

Located at 11710, 11720 and 11810 N. Gessner Road, the campus is about 17 miles southwest of the George Bush Intercontinental Airport and about 30 miles northwest of the port of Houston.

The three-facility industrial park debuted between 2015 and 2016. The rear-load, 67,200-square-foot shallow-bay warehouse includes a 24-foot headway, while the two cross-dock facilities spanning 155,682 and 441,000 square feet feature 32-foot clear heights. The campus comprises a total of 174 dock doors and 10 drive-in doors.

The tenant roster includes Amazon, Wärtsilä North America—an operator in the marine and energy industries—and Advance Auto Parts.

Hawaii-based James Campbell Co. owns 93 industrial, office and retail assets throughout mainland U.S. The company recently closed another deal in Houston with the acquisition of the 2013-completed, 240,000-square-foot Point North Sort Center.

Industrial deals in metro Houston

Greater Houston’s industrial sale volume landed at $724 million in 2024, according to a report by Partners Real Estate. A total of 719 industrial and flex assets changed hands last year for an average of $115 per square foot. The average cap rate stood at 7.9 percent.

A significant metro Houston deal closed in December when Stonepeak acquired a 2.3 million-square-foot logistics collection from Starwood Capital Group. The six-asset portfolio in La Porte, Texas, traded for $244 million.

Two months earlier, MDH Partners purchased Link Logistics’ Cedar Port IKEA in Baytown, Texas. The 996,482-square-foot industrial park comprises two facilities that came online in 2017.

The post James Campbell Snaps Up 664 KSF Houston Industrial Asset appeared first on Commercial Property Executive.

A joint venture of GTIS Partners and Hopewell Development has sold Champions Circle Business Park, a 361,040-square-foot industrial campus in Fort Worth, Texas. Stonelake Capital Partners acquired the asset, according to CommercialEdge data.

The duo kicked off the industrial park’s development in 2021, benefitting from a $23.4 million construction loan, the same source shows. Champions Circle was completed a year later.

The park consists of three buildings—two 82,240-square-foot facilities and a third measuring 196,560 square feet. The shallow-bay light industrial structures feature 32-foot clear heights, 190-foot truck courts and building depths ranging from 160 to 210 feet.

READ ALSO: 5 Promising Opportunities in an Uncertain Market

Located on 21 acres at 15860 Championship Parkway, the industrial campus is less than 1 mile from Highway 114 and Interstate 35W. The Dallas Fort Worth Airport operates roughly 19 miles southeast.

Champions Circle Business Park is part of the 27,000-acre Alliance Texas master-planned development, which encompasses 60 million square feet of built space including office, industrial, retail and residential.

The tenant roster includes Optimas, an industrial fastener distributor and manufacturer, and Elliott Electric Supply, as well as Lab Supply, a provider of products for research facilities.

Dallas investment barrels through despite national slump

Investors slammed on the brakes on industrial deals throughout 2024. Last year, the sector made up just 12 percent of sales, down from 21 percent in 2023, DLA Piper’s annual survey shows. However, Dallas industrial investment kept a solid pace throughout 2024, and the market’s momentum lingered well into the new year.

A two-building, light industrial campus traded last month in the Metroplex. Rosewood Property Co. purchased the 200,765-square-foot asset from Provident Realty Advisors. The Plano, Texas, property was 71.1 percent leased at closing.

In January, Alterra IOS expanded its industrial outdoor storage footprint with four more assets. Spanning 35 acres, the collection brought the company’s IOS portfolio to 10 properties in the market.

The post Hopewell and GTIS Sell Metroplex Industrial Asset appeared first on Commercial Property Executive.

Globe Life plans to move its corporate headquarters to 7677 Henneman Way in McKinney, Texas. The company intends to buy the 200,000-square-foot office building from SouthState Bank.

The deal also involves the purchase of two adjacent parcels of developable land—8 acres north of the building and 1.3 acres to the east.

Cushman & Wakefield represented both parties in the transaction. Bradley Arant Boult Cummings LLP also worked on behalf of Globe Life.

Globe Life will relocate its corporate offices from 3700 S. Stonebridge Drive, where it occupies roughly 150,000 square feet, according to CommercialEdge information. That building is some 4 miles north of the future headquarters where the firm will also gain exterior building signage rights.

The future Globe Life headquarters

KDC developed the six-story building at 7677 Henneman Way as the second component of Independent Financial’s headquarters. The development team also included Smith Group, Corgan and Kimley-Horn, among others. The bank was later on acquired by SouthState.

Completed in 2022, the low-rise has a LEED Silver certification. Amenities feature parking, a fitness center and conference space for 350 people, as well as food and beverage areas.

The property is 30 miles north of downtown Dallas and has access to the Sam Rayburn Tollway. Dallas-Fort Worth International Airport is some 27 miles away.

Cushman & Wakefield Executive Directors Campbell Puckett and Zach Bean, Executive Managing Directors Bill McClung, Chris Taylor and Ryan Hoopes, together with Associate Tucker Hume brokered the transaction. In addition, Senior Attorney Krishan Patel and Partner Lauren Smyth with Bradley Arant Boult Cummings LLP represented Globe Life.

The office investment volume may experience a modest increase in 2025, but prices are likely to remain steady, a recent CommercialEdge report shows. Maturing loans on properties facing occupancy issues and ongoing inflation pressures will lead to a market dominated by distressed property sales.

The post Globe Life Eyes New HQ Near Dallas appeared first on Commercial Property Executive.

A joint venture between Trammell Crow Co. and Clarion Partners has broken ground on the third and final phase of Weiser Business Park in Cypress, Texas. Upon completion in October 2025, this stage will add 628,012 square feet of speculative industrial space in two buildings, expanding the campus to 1.7 million square feet.

Cadence Bank provided construction financing, which according to CommercialEdge clocked in at $32.5 million. Cadence also issued a note of $31.9 million for the previous phase, which debuted in 2023 and added 521,600 square feet to the industrial park.

Seeberger Architecture provided design services for phase three, which comprises two facilities. A&F General Contractors is also part of the development team. The same crew worked on Weiser Business Park’s second phase.

READ ALSO: Industrial Real Estate’s Future Depends on Adaptability

The duo will feature a cross-dock configuration and 36-foot clear heights, as well as a combined total of 136 dock doors and eight ramp doors. The two buildings will pursue LEED certification upon completion.

The 130-acre Weiser Business Park rose on the site of the former Weiser Airpark, which opened in the mid-1940s and shuttered its operations in 2019. Carrying the addresses 14311 and 14281 Fallbrook Drive, the last two infill construction sites are 24 miles northwest of downtown Houston.

Buildings one through four are 93 percent leased. The tenant roster includes Western Post, a warehousing operator based in China, and Pratt Industries, a packaging manufacturing company, as well as R.S. Hughes, a distributor of industrial supplies, among others.

Metro Houston’s industrial starts outpace deliveries

Greater Houston’s industrial pipeline encompassed 11.5 million square feet of space underway in December, according to a Cushman & Wakefield report. Speculative industrial developments accounted for 95 percent of the total under-construction space.

During 2024’s last quarter, construction starts clocked in at 4.0 million square feet, outpacing industrial deliveries—which landed at 2.0 million square feet—for the first time since 2022’s fourth quarter, the report shows.

The market’s vacancy rate stood at 5.5 percent at the end of 2024, a 120-basis point decline compared to 2023, the same source reveals. This drop was due to less supply hitting the market last year. Just 16.4 million square feet of industrial space debuted in 2024, as opposed to 35 million square feet in 2023.

As deliveries dwindled and vacancy tempered, new projects may take root in select submarkets this year, Cushman & Wakefield predicts. One industrial development that broke ground earlier this year was the 463,000-square-foot Patriot Business Park in Houston’s Northern submarket. Investment & Development Ventures and Standard Real Estate teamed up for the campus, which is slated for delivery in 2025’s third quarter.

The post Trammell Crow, Clarion Kick Off 628 KSF Industrial Project appeared first on Commercial Property Executive.

Lincoln Property Co. has completed Maverick Distribution, a 435,680-square-foot industrial facility in Houston. The Class A property was developed in a joint venture with HIMCO and is currently available for lease.

Texas Exchange Bank provided a $28.5 million construction loan originated in September 2023, according to Harris County public records. The same source shows that Lincoln Property Co. purchased the development site in 2022, from The National Realty Group Inc. The development team included Powers Brown as architect of record and EE Reed as general contractor.

Maverick Distribution is at 18239 Aldine Westfield Road, covering a 26-acre lot. The property allows easy access to interstates 45 and 69, as well as to Beltway 8. George Bush Intercontinental Airport is within 4 miles from the property, downtown Houston is within 18 miles and William P. Hobby Airport is within 30 miles. Notable corporate neighbors in the area include Amazon, Coca Cola, Sysco and Farouk Systems, among others.

The property includes 40-foot clear heights, being the first asset with such ceiling capacity in the North Houston area. The building was designed to meet highly technical needs of advanced logistics companies. It also includes cross-dock configuration with 102 overhead doors, ample column spacing, ESFR sprinkler systems and 70-foot speed bays. Additionally, Maverick Distribution features ample parking spaces, with 289 vehicle parking spots and 134 trailer parking spots.

Lincoln Property Co.’s Executive Vice President Kevin Wyatt, Leasing Representative Robert Willard and Associate SuAnna Sanchez are leading leasing efforts for Maverick Distribution. The property has spaces that are divisible to as much as 100,000 square feet or can be used by a single tenant.

Houston’s industrial pipeline

As of December last year, Houston’s pipeline had 12.4 million square feet underway, a recent CommercialEdge report shows. The metro ranked third among top U.S. markets, outpaced only by Phoenix (22.4 million square feet) and Dallas-Fort Worth (18.9 million square feet).

Recent developments include GreensPORT Logistics Park, a two-building, 535,478-square-foot project that broke ground in October. Developed by Jackson-Shaw, the complex is expected to come online in the third quarter of this year.

In recent months, Hines also broke ground on Grainger’s Houston Texas Distribution Center, a 1.2 million-square-foot project in Hockley, Texas. The property will become one of Grainger’s largest facilities, hosting about 400 employees in the first year.

The post Lincoln Property JV Delivers Houston Facility appeared first on Commercial Property Executive.

The maritime assurance and risk management firm DNV USA has signed a 62,779-square-foot lease at The Offices at Greenhouse, a 208,809-square-foot office property in Houston’s Energy Corridor submarket. The company will relocate from its current location in Katy, Texas.

The deal brought The Offices at Greenhouse to 74 percent occupancy, leaving 52,334 square feet available for lease. The tenant roster includes Patten Title Co., SPB Hospitality, Med Sales Institute and DSWi, among others, CommercialEdge shows.

Located at 19219 Katy Freeway, the property has access to Interstate 10. Downtown Houston is 23 miles away, while William P. Hobby Airport is some 34 miles southeast.

Transwestern’s Executive Managing Director Doug Little, Vice President Jack Scharnberg and Senior Vice President Kelli Gault worked on behalf of Capital Commercial Investments. JLL’s Senior Vice President Collin Grimes represented the tenant.

READ ALSO: What’s Defining Office in 2025?

Capital Commercial Investments acquired the asset last year. The company paid $17.6 million to seller KBS Realty Advisors in July, according to CommercialEdge. The property traded at $86.6 per square foot, a notable discount from the previous sale, closed in 2016 at $47 million, or at $231.4 per square foot, the same source shows.

After the acquisition, the owner commenced a capital improvement strategy at the property. Upgrades are ongoing and include the addition of EV charging stations, a fitness center and renovations of the outdoor spaces.

Built in 2014, the five-story Class A property has a LEED Silver certification and includes 40,000-square-foot floorplates, a tenant lounge, a conference center and 900 vehicle parking spots. Additionally, the building features car wash or detailing services, as well as bike storage.

In November last year, the company made another purchase in the same submarket when it picked up Energy Crossing II, a 327,404-square-foot office building, from Invesco Real Estate. At the time of the sale, the property was 30 percent leased.

Rising vacancies in Texas

The Southern region’s office markets registered high vacancies throughout 2024, with Texas markets posting some of the most notable surges of year-over-year increases, a recent CommercialEdge report shows. As of December, Houston’s office vacancy rate stood at 24.5 percent, above the 19.8 percent national average but it was the second-highest in the region, after Austin’s 27.9 percent rate.

Recent deals in Houston include Brookfield Properties’ 259,774-square-foot renewal agreement at its Allen Center office campus. Plains Marketing LP, a tenant at the property since 1992, extended its commitment through 2036.

In December, Prescott Group inked a 94,179-square-foot leasing deal with Ezee Fiber at its 567,333-square-foot building, currently undergoing upgrades. The tenant will consolidate two Houston locations into a large headquarters at the property.

The post Capital Commercial Inks 63 KSF Lease in Houston appeared first on Commercial Property Executive.

The Texas Heritage Marketplace name applies to both the 750,000-square-foot regional shopping center and to the larger mixed-use project, which will eventually also encompass 550 apartments in two communities, plus almost 300,000 square feet of medical office space and self storage units.

The 165-acre site is at the southeast corner of I-10 and Texas Heritage Parkway.

NewQuest’s own architectural team aimed at creating a walkable environment with ample green space. The focus of this is a huge Heritage oak tree that was saved from the path of the recently completed parkway and relocated to the center of the development. (The Heritage oak is a hybrid of the English oak (Quercus robur) and the Bur oak (Q. macrocarpa).

READ ALSO: What’s in Store for Retail in 2025?

NewQuest reportedly has spent about 10 years preparing for this project, biding its time till the right point in the area’s rapid population growth—56 percent since 2020—and until the 6.5-mile Texas Heritage Parkway was completed. The latest trigger was the developer having secured Target as a 149,000-square-foot anchor tenant.

Patience is a virtue

Texas Heritage Marketplace might be part of a pattern for NewQuest. In the 1990s the developer acquired a 65-acre site in Tomball, Texas, also in metro Houston, but didn’t break ground on The Grand at 249, a 404,256-square-foot retail center there, until years later. In October 2023, Commercial Property Executive reported that the center had reached 96 percent preleasing.

Metro Houston’s overall economy is doing well, with job growth of 1.8 percent, above the national average 1.4 percent, year-over-year, according to a fourth-quarter report from Cushman & Wakefield.

The retail market, naturally, is thriving. Though average vacancy bumped up slightly, to 5.4 percent in the fourth quarter, closing 2024 significantly below historical averages.

In the Katy submarket specifically, vacancy was 4.7 percent on an inventory of 31.4 million square feet. Asking rents were up a landlord-pleasing 7.3 percent year-over-year, to $24.82 NNN asking, Cushman & Wakefield reported.

The post NewQuest Breaks Ground on $400M Mixed-Use Project appeared first on Commercial Property Executive.

Law firm Jackson Walker LLP has extended and expanded its office footprint at Masaveu Real Estate’s KPMG Plaza in Dallas to a total of 147,915 square feet. Under the new lease, the company will occupy nearly six floors at the 500,000-square-foot property. Stream Realty Partners represented the owner, while CBRE negotiated on behalf of the tenant.

Jackson Walker relocated to KPMG Plaza upon its 2015 completion and became one of the building’s anchor tenants. The roster also includes Bell Nunnally & Martin LLP, UMB Bank and KPMG.

A Class A office building in Dallas

Masaveu acquired the Class A mid-rise in 2019 for $240 million from Civitas Capital Group, according to CommercialEdge information. A $111.7 million loan originated by Wells Fargo Bank financed the transaction.

Located at 2323 Ross Ave. in Dallas’ Arts District, the 18-story building features 26,000-square-foot floorplates and 20,000 square feet of retail space. Amenities at the LEED Gold-certified property include a fitness center and covered parking, as well as 24-hour security.

KPMG Plaza is near Interstate 345 and Highway 366, adjacent to a luxury hotel and within walking distance of Klyde Warren Park.

Stream Managing Director Matt Wieser, Executive Vice President J.J. Leonard and Senior Vice President Marissa Parkin worked on behalf of the ownership. CBRE Vice Chairman Phil Puckett and former Vice Chairman Jeff Ellerman—now Executive Vice Chairman at Stream—represented Jackson Walker.

Earlier this week, Stream became the exclusive leasing agent for Piedmont Office Realty Trust’s office campus in Irving, Texas. Leonard is part of that brokerage team as well.

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The joint venture of Blue Owl Capital, Crusoe Energy Systems and Primary Digital Infrastructure has obtained a $2.3 billion loan to capitalize a 206 megawatt build-to-suit data center development in Abilene, Texas. J.P. Morgan provided the note in a Newmark-brokered deal.

The three companies formed the $3.4 billion joint venture in October. Funds managed by Blue Owl’s Real Estate division and Primary Digital Infrastructure will jointly finance the 998,000-square-foot, two-building data center, which is being designed, developed and operated by Crusoe.

Oracle has already committed to the entire complex under a long-term lease, according to Data Center Dynamics. Occupancy is scheduled to commence in the second half of this year.

READ ALSO: Are Data Centers Immune to CRE Market Forces?

The project is part of Lancium Clean Campus, an 1,100-acre development that broke ground in late 2022 and was initially set to be a bitcoin farm. It currently has 200 megawatts of data center power capacity, with a total of 1,000 megawatts to be energized by the end of the year and an additional 1,000 megawatts in process.

Crusoe broke ground on the Abilene campus last year and is expected to deliver initial capacity in the following months. The site will also boast 300 megawatts of on-site self-generation. Once complete, the facility will be capable of running up to 100,000 GPUs on a single network.

The purpose-built data center is also set to include high-density data halls specially designed for AI workloads and use renewable energy sources, including nearby wind power. The design will support both direct-to-chip liquid cooling and air cooling.

Newmark Co-President Jordan Roeschlaub, Vice Chairman Clint Frease and Managing Director Ben Kroll, along with Head of Data Center Capital Markets Brent Mayo, secured the loan.

Data centers on the rise

Despite power constraints, the data center market is expected to continue to thrive, the expansion of AI applications being a major driver behind the growth. Global data center energy demand is set to double in the next five years to 100 gigawatts, according to a JLL report.

Texas had almost 440 completed data centers including colocation, hyperscale, cloud and enterprise data centers as of the third quarter of 2024, according to a LandGate Corp. report. That number is poised to grow, with two developments in the state already announced since the beginning of the year.

Earlier this month, Lincoln Property Co., Gigabit Fiber and Tradition Holdings formed a partnership to develop a data center campus in South Dallas. Dubbed GigaPop, the project will comprise more than 800,000 square feet across four buildings and will boast up to 540 megawatts.

Also in the Metroplex, Provident Data Centers formed a joint venture with PowerHouse Data Centers for the construction of a hyperscale campus in Grand Prairie, Texas, which is set to be one of the largest in the U.S. The first phase of the 768-acre project is expected to generate about 500 megawatts, while the entire campus will have 1.8 gigawatts of capacity at full build-out.

The post Blue Owl JV Obtains $2.3B for Data Center Project appeared first on Commercial Property Executive.

Rosewood Property Co., in a partnership with Pillar Commercial, has purchased Plano Commerce Center, a two-building industrial asset in Plano, Texas. The seller of the 200,765-square-foot Class A property was Provident Realty Advisors.

MetLife Investment Management provided nearly $20.6 million in acquisition financing, according to Collin County public records.

The properties are 71.1 percent leased to a mix of tenants, such as Senderra Specialty Pharmacy, Ulrich Medical USA, Cheer Athletics and Acre Security. Pillar Commercial is currently marketing the remaining 58,000 square feet for lease.

Plano Commerce Center includes two one-story industrial facilities at 3700 and 3712 E. Plano Parkway. Built in 2022, the properties feature 24-foot clear heights, loading doors, dock-high doors, an ample truck court and 222 vehicle parking spots.

The 22-acre property is within the Metroplex’s East Plano submarket, close to U.S. Routes 75 and 190. Dallas-Fort Worth International Airport is 31 miles away, while Irving, Texas is 36 miles away. Fort Worth, Texas is within 54 miles of Plano Commerce Center.

DFW led the U.S. in sales

Dallas-Fort Worth led the nation in year-to-date sales as of November, according to a recent CommercialEdge report. The Metroplex recorded $4.2 billion in industrial investment volume, with assets changing hands at an average price of $113 per square feet. The market had one of the lowest average sales prices in the country, clocking in below the national figure of $128 per square foot.

In December, Longpoint Partners picked up Valley View Business Center in Irving, Texas, from Brookfield Asset Management. The 414,871-square-foot distribution center within the Las Colinas submarket was fully occupied at the time of the deal.

During the same month, Maryland-based WareSpace acquired a 241,004-square-foot industrial building in Addison, Texas. The property is within Inbound on Inwood, an 1.1 million-square-foot redeveloped industrial campus owned by M2G Ventures and Pennybacker Capital.

The post Rosewood, Pillar JV Buys DFW Industrial Asset appeared first on Commercial Property Executive.

Developments and completions in metro Houston were below national figures as well. About 1.8 million square feet were under construction as of November, accounting for 0.7 percent of total stock. In terms of deliveries, less than 1.4 million square feet came online in the first eleven months of the year.

The metro’s investment volume remained steady, registering $940 million during the same period. However, assets traded well below the $179 per square foot national threshold, also due to several foreclosures in the metro.

Developments and completions remain below national figures

As of November, Houston’s underway pipeline consisted of almost 1.8 million square feet. This accounts for 0.7 percent of the metro’s total stock, faring better than Washington, D.C. (0.4 percent) and Phoenix (0.4 percent), but slightly below the 0.8 percent national index. Boston (3.6 percent) and Nashville (3.6 percent) had the largest share of under-construction space out of total inventory.

The market’s share of office space in the development and planning phases stood at 1.9 percent of existing stock, still under the national figure (3.0 percent). Atlanta (2.3 percent), Dallas (4.9 percent) and Austin (12.9 percent) were some of the more active metros.

One of the largest projects underway in Greater Houston is Building 5 within the South Campus Research. The University of Texas System is developing a seven-story, 600,000-square-foot office and research facility, expected to come online in the third quarter of 2027.

In terms of completions, Houston’ office sector saw roughly 1.4 million square feet coming online year-to-date as of November, accounting for 0.5 percent of its total stock. This figure was also lower than the national average, which stood at 0.6 percent, and represented an almost 50 percent drop year-over-year.

Among other major markets, the metro fared betted than Denver (1.3 million square feet) and Phoenix (646,629 square feet) but trailed behind Austin (2.1 million square feet) and Dallas (2.8 million square feet).

Earlier this year, Skanska completed 1550 on the Green, a 28-story, 382,000-square-foot office building in the city’s downtown. The high-rise is LEED Platinum-certified and has ground-floor retail space.

Office-to-residential conversions gain traction

Last year, CommercialEdge introduced the Conversion Feasibility Index, a tool powered by Yardi designed to evaluate the potential of converting office buildings into multifamily residences. As the trend of office-to-residential adaptive reuse gains traction, the CFI offers crucial insights for investors.

While Texas metros may not rank among leading U.S. markets for repurposing buildings, Houston currently has 152 office properties—totaling 24.9 million square feet—with a score higher than 75, placing them as Tier I and II candidates for potential conversions.

Earlier this year, DeBartolo Development completed the $100 million office-to-residential conversion of 1801 Smith Street, a 20-story office building in downtown Houston which had a CFI score of 86, indicating that the asset bore strong conversion potential. Dubbed Elev8, the residential property now features 372 luxury units.

Additionally, the company is currently working on another adaptive reuse project: the conversion of a 19-story office high-rise totaling 827,596 square feet. Upon completion, the development will generate 311 apartments.

More Houston assets doomed to foreclosure

Houston’s office investment volume year-to-date as of November clocked in at $940 million. The metro was surpassed by markets such as Austin ($990 million) and Atlanta ($1.1 million), while Denver ($768 million) and San Francisco ($747 million) were at the opposite pole.

Assets traded at $107 per square foot on average, well below the $179 national figure. Manhattan ($379 per square foot) remained the most expensive market, followed by Washington, D.C. ($213 per square foot) and the Bay Area ($293 pe square foot).

In November, The National Bank of Kuwait sold the Twentyfour25 Galleria for $27 million, after it foreclosed on the 285,000-square-foot office building. The previous owner, an entity associated with Jetall Capital, defaulted on a $51.7 million loan.

Earlier this summer, Interra Capita Gorup acquired The Esperson Buildings, two properties spanning 600,000 square feet, following foreclosure. The firm paid $12 million for the assets, previously owned by Contrarian Capital Management.

Houston’s vacancy rate decreases year-over-year

Houston’s office vacancy rate at the end of November clocked in at 24.3 percent, a 120-basis-point decrease year-over-year. Despite the drop, the metro’s share of available space was considerably larger than the 19.4 percent national figure.

Among other secondary markets, Austin (27.7 percent) fared worse, while Dallas (23.0 percent) and Atlanta (17.8 percent) performed better.

In September, Enterprise Products Partners signed a 23,537-square-foot leasing agreement with Frost Brown Todd at its 1.3 million-square-foot 1100 Louisiana St. The legal counselors will occupy a full floor at the high-rise.

Greater Houston’s listing rates as of November reached $30.2, posting a 0.8 percent growth year-over-year. This figure was also below the $32.9 U.S. index, but closer to peer metros Dallas ($30.5) and Nashville ($31.0).

Coworking inventory remains constant

Houston’s office shared space inventory as of November totaled 4.5 million square feet across 229 locations. This accounted for 1.8 percent of the market’s total inventory, slightly below the 1.9 percent national rate.

The metro’s inventory was on par with Dallas, but surpassed Philadelphia (1.5 percent) and Austin (1.7 percent). Miami remained in the lead, with 3.7 percent of its total stock designated as coworking space.

Regus remained the largest coworking operator in the metro, with 574,106 square feet across 34 properties. The Cannon (444,341 square feet) and Workstyle Flexible Offices (372,169 square feet) rounded up the top three.

The post Houston Office Figures Lag Behind National Metrics appeared first on Commercial Property Executive.

Piedmont Office Realty Trust has appointed Stream Realty Partners as exclusive leasing agent for The Connection, an office campus totaling 607,237 square feet in Irving, Texas. The Class A, three-building property is within the Las Colinas submarket of Dallas-Fort Worth.

Executive Vice President & Partner J.J. Leonard, Senior Associate Patrick Cruz and Managing Director Doug Jones with Stream Realty Partners’ Dallas Office division will handle leasing at the property.

The Connection, formerly known as Las Colinas Connection, includes the 231,681-square-foot building at 6031 Connection Drive, the 223,470-square-foot building at 6021 Connection Drive and the 152,086-square-foot building at 6011 Connection Drive.

READ ALSO: Innovative Solutions for Return-to-Office Challenges

The nine-, seven- and six-story properties feature floorplates between 27,464 square feet to 33,073 square feet, passenger elevators, on-site property management and a total of 2,089 parking spots. Amenities at The Connection include a conference center, a tenant lounge, outdoor patios, a fitness center and multiple services, such as shuttle services.

The current ownership bought the three buildings in a $124.8 million portfolio deal in 2022 from CarrAmerica Realty, according to CommercialEdge. Tenants at The Connection include Cardinal Financial Co., Epsilon Data Management and Gartner Inc., among others, the same source shows.

The approximately 20-acre office campus provides easy access to the Dallas metro, being close to Texas State Highway 114 and 183, as well as to interstates 635 and 35. Dallas Fort Worth International Airport is within 6 miles from The Connection, downtown Dallas is within 15 miles and Fort Worth, Texas, is within 27 miles.

High vacancy rates across Texas metros

The office sector continues to struggle with high vacancy rates, a recent CommercialEdge report shows. The national office vacancy rate as of November reached 19.4 percent, marking a 120-basis-point year-over-year increase. The Metroplex had a 23.9 percent vacancy rate, representing a 500-basis-point uptick while also being among the highest in the South region. Houston had a slightly higher rate at 24.2 percent, while Austin, Texas, recorded a 27.7 percent average vacancy and a 650-basis-point increase—the highest in the U.S.

However, several significant office leases still closed in Dallas-Fort Worth metro. A recent deal is Merit Energy Co.’s 104,034-square-foot leasing agreement at Two Lincoln Centre. The tenant will relocate its headquarters at the 620,000-square-foot office building, owned by Nuveen Real Estate.

Another significant deal is Bank of America’s 553,799-square-foot renewal in Addison, Texas. The tenant signed a 10-year deal at Hallmark Center I, with Stream Realty Partners representing landlord Office Properties Income Trust.

The post Stream Lands Dallas-Fort Worth Leasing Assignment appeared first on Commercial Property Executive.

Company officials describe the state’s largest market as ideal for industrial outdoor storage investment because of its outsized population and economic growth that attracts major national tenants. The region also has an extensive infrastructure and thriving logistics network. Each of the newly acquired properties are located within 20 miles of downtown Dallas, providing access to the metro’s network of state and interstate highways, international airports and freight transportation.

Alterra, a prominent player in the growing IOS sector that has acquired more than 300 sites nationwide, focuses on prime locations with access to essential infrastructure as well as properties that are situated in dense, infill industrial clusters surrounded by other IOS users.

Leo Addimando, managing partner & CEO of Alterra IOS, said the firm was incredibly active in 2024, acquiring 102 IOS properties. One of its biggest milestones last year was closing on a 51-property portfolio sale to Peakstone Realty Trust in an off-market transaction valued at $490 million. The assets are located in 14 states and span 440 usable acres. The non-development portfolio, 45 of the 51 properties sold, was fully leased at closing. Two of the properties are in the Dallas-Fort Worth market and four are in Houston. Other assets are located in the Philadelphia, Atlanta and Nashville, Tenn., markets.

READ ALSO: Industrial Sector Settles After Supply Surge

Addimando said the portfolio sale underscored the success of the Alterra IOS investment model and institutional investment in a previously a fragmented, relatively unknown asset class.

“We’re excited about the trajectory of IOS, in tandem with our firm’s continued ability to build relationships with IOS owners, industry-leading tenants and brokers throughout the country,” Addimando told Commercial Property Executive. “We look forward to continued growth in 2025 and are excited about the future of the sector as it continues to de-fragment and institutionalize.”

Newly acquired DFW assets    

The largest of the newly acquired IOS properties is 14.8 usable acres at 7050 Jack Newell Blvd. S. in Fort Worth, which includes 14,000 square feet of warehouse space. The property also features recently completed site work such as new fences, office renovations and a new roof. It is located 1 mile from I-30, I-820 and Highway 121 S. Bo Puckett and Caleb McCoy of JLL facilitated the transaction.

8738 Forney Road in Dallas has 10.1 usable acres and 14,100 square feet of warehouse space. The fully paved-rail served site is 8 miles from downtown Dallas and provides easy access to I-30 and I-635. The property is fully leased to a national distributor of specialty business materials. Ricardo Camarena of Marcus & Millichap assisted in the acquisition.

2260 Market St. in Garland, Texas, has 7.4 usable acres and includes 87,780 square feet of warehouse space. The fully paved site also features a full concrete yard. Located 12 miles northeast of Dallas, the property has immediate proximity to I-635. It is fully leased to a leader in exterior and interior building product supplies. Alexander Harrold of Matthews Realty facilitated the transaction.

A leading national lawn care company leases 2420 113th St. in Grand Prairie, Texas, which has 2.5 usable acres and 13,276 square feet of warehouse space. The fully improved site has easy access to I-30 and Routes 360, 161 and 183. Robert Morris of Rubicon Representation handled the acquisition.

Alterra’s recent deals

In December, Alterra acquired three IOS sites totaling 23 usable acres in the Portland, Ore., market expanding the firm’s regional footprint to six assets. The sale included properties in Portland, Milwaukie, Ore., and Hubbard, Ore. The largest of the assets is fully leased by a regional building materials supplier and features a 20,965-square-foot warehouse on 11 acres.

A month earlier, Alterra purchased a seven-property portfolio with assets in Dallas, Minneapolis, Indianapolis, Chicago, Cleveland, St. Louis and Nashville metro areas. The fully leased portfolio has a total of 23 usable acres.

Alterra also acquired four properties totaling 17 acres in the Greater Houston area in September.

The post Alterra IOS Expands Dallas-Fort Worth Portfolio appeared first on Commercial Property Executive.

Sealy & Co. has acquired the Stateline and Crossroads Logistics Package, a 589,598-square-foot portfolio comprising two Class A distribution facilities in Southaven, Miss., and Olive Branch, Miss. Both buildings are in the DeSoto County submarket of Memphis, Tenn. JLL worked on behalf of the seller, IDI Logistics.

The properties that changed hands are Stateline Building K, totaling 347,604 square feet, and the 241,994-square-foot Crossroads Building L. They are both fully leased to Motivational Fulfillment & Logistics Services and American Musical Supply.

The facilities have 32-foot clear heights, flexible layouts for single or multi-tenant use, ESFR sprinkler systems, a total of 58 grade-level doors, 48 dock-high doors and ample parking spaces.

READ ALSO: Industrial Sector Settles After Supply Surge

Located at 1660 Stateline Road, the Southaven property is part of Stateline Business Park, a 230-acre master-planned campus totaling approximately 4 million square feet across 10 buildings. The Olive Branch facility at 12914 Stateline Road is one of the warehouses at Crossroads Distribution Centers, a 7 million-square-foot industrial campus with 12 buildings. Both industrial parks were developed by IDI Logistics.

Situated 13 miles apart, the industrial buildings are close to Interstate 55 and U.S. Highway 78. Memphis International Airport is 20 miles away, while the Port of Memphis is 27 miles away.

Senior Managing Directors Matt Wirth, Britton Burdette and Dennis Mitchell and Director Jim Freeman with JLL negotiated on behalf of the seller. The company’s Managing Director Jack Wohrman is the exclusive leasing agent for both properties.

Low investment activity in Memphis

Despite having one of the most active industrial pipelines in the country, Memphis’ sales volume was one of the lowest in the South at the end of November, a recent CommercialEdge report shows. Investments totaled $362 million in 11 months—the lowest volume across Southern markets and the third-lowest in the U.S. Properties changed hands at $57 per square foot, way below the national average of $128 per square foot.

In one of the more recent deals, Phoenix Investors acquired a 411,500-square-foot industrial asset in Union City, Tenn. The company picked up the property from MVP Group International, with plans to substantially improving it.

The post Sealy & Co. Picks Up Memphis Industrial Duo appeared first on Commercial Property Executive.

BKM Capital Partners has acquired West Belt Business Park, a five-building industrial park totaling 260,887 square feet for $34.1 million in Houston’s Westchase submarket. Longpoint Realty Partners sold the property, CommercialEdge shows.

JLL negotiated on behalf of the seller while the buyer represented itself. The buyer secured a $27 million bridge loan originated by LoanCore Capital, with a maturity date set for 2027, according to Harris County public records.

The industrial park last changed hands in 2021, when Longpoint Realty Partners picked it up from Triten Real Estate Partners.

READ ALSO: Top 5 Emerging Industrial Markets in 2024

The acquisition marks BKM Capital Partners’ first investment in Texas, expanding its footprint to seven states in the Western region of the country. Dating back to 1978, West Belt Business Park includes five one-story buildings at 10611 and 10641 Harwin Drive. The approximately 15-acre asset is close to Interstate 69 and 26 miles from William P. Hobby Airport, while being 31 miles from George Bush Intercontinental Airport.

The light industrial buildings include spec suites ranging from 770 square feet to 23,000 square feet and a total of 436 vehicle parking spots. BKM Capital Partners purchased the property at a 41 percent discount to replacement cost and plans to invest $3.3 million in capital improvements, such as roofing and architecture enhancements, or operational upgrades such as parking spaces, landscaping, signage and tenant upgrades, according to the company.

Additionally, West Belt Business Park is fully leased with an average lease term of 2.9 years. Tenants at the industrial park include Witmart, Matrix Power Technologies, Great Plains Supply, Sifax Global and BuildStrong Academy, among others, according to CommercialEdge.

JLL’s Senior Director Charlie Strauss, together with Director Lance Young and Capital Markets Analyst Clay Anderson represented the seller during negotiations.

Recent industrial deals in the metro

Houston’s investment volume reached $2.8 billion year-to-date through November 2024, ranking third nationally, a recent CommercialEdge report shows. Assets in the metro changed hands at an average sale price of $108 per square foot, making it one of the most affordable metros in the Southern area.

Recent notable deals in the metro include Stonepeak’s $244 million acquisition of a six-property logistics portfolio. Starwood Capital Group sold the 2.3 million-square-foot asset with facilities situated close to the Port of Houston.

In October last year, MDH Partners purchased a 996,482-square-foot distribution center in Baytown, Texas. Dubbed Cedar Port IKEA, the property includes two facilities fully occupied by Ikea and is part of Cedar Port Industrial Park, the largest master-planned industrial park in the country.

The post BKM Capital Enters Texas With $34M Industrial Buy appeared first on Commercial Property Executive.

Energy company Plains Marketing LP has extended its 259,774-square-foot lease at Brookfield Properties’ Allen Center office campus in Houston. The tenant has been occupying space at the 1.2 million-square-foot Three Allen Center building since 1992 and its new commitment will last through 2036.

The owner had in-house representation together with CBRE, while Cushman & Wakefield assisted Plains Marketing in the negotiations.

Allen Center’s tenant roster includes Guard and Grace, Mendocino Farms, Talos Energy, Freeport LNG and Castex Energy, among others, according to CommercialEdge.

Located at 500 Dallas St., 1200 Smith St. and 333 Clay St., the property is in Houston’s central business district. Allen Center has access to Interstate 45 and is 20 miles south from the George Bush Intercontinental Airport.

A renovated campus

The 3.2 million-square-foot Allen Center has been under Brookfield Properties ownership since 1996. The company had acquired the three-building asset from MetLife Real Estate Investment, CommercialEdge shows.

Completed between 1972 and 1980, the property underwent renovations finalized in 2021, which included an upgrade of the lobby and common areas, as well as its connections to the outdoor green spaces. Among its amenities is a tenant-only suite dedicated to breastfeeding mothers, as well as a wellness studio. The Allen Center received the LEED Gold and Energy Star certifications.

Cushman & Wakefield Vice Chairmen Trey Strake and Chris Oliver, together with Executive Managing Director David Guion, worked on behalf of the tenant. Brookfield Properties Vice President Tyler Merritt, alongside CBRE Executive Vice President Bubba Harkins, Senior Vice President Kristen Rabel and Senior Associate Jenny Sealy, represented the ownership in the lease negotiations.

The post Brookfield Lands 260 KSF Renewal at Houston Campus appeared first on Commercial Property Executive.

KBS Realty Advisors has sold Fountainhead Tower, a 179,932-square-foot office building in San Antonio. A partnership organized and managed by SynerMark Properties Inc. acquired the asset.

Cushman & Wakefield represented KBS in the transaction. Greenberg Traurig worked as legal counsel on behalf of the seller.

The property previously traded in October 2006, when KBS acquired it from American Realty Advisors, CommercialEdge information shows.

Located at 8200 Interstate 10 W., the property is close to multiple retail destinations and a medical campus. Downtown San Antonio is 10 miles away, while the San Antonio International Airport is 7 miles east.

READ ALSO: What’s Defining Office in 2025?

The office vacancy rate in San Antonio was at 18.8 percent by the end of 2024, a CBRE report shows. Meanwhile, the market’s overall asking rates reached historic highs at $28.71 per square foot, marking a 3.3 percent increase year-over-year

Major Texas office markets continue to perform well thanks to strong population growth and corporate migration, KBS’ Giovanni Cordoves told Commercial Property Executive in an earlier interview.

An upgraded office tower

Completed in 1985, Fountainhead Tower rises 10 stories and has floorplates averaging 18,783 square feet. The building underwent renovations in 2017, which included a new conference center. Other amenities at the almost 6-acre property are four passenger elevators, a 627-space parking garage, an exterior courtyard garden with a golf putting green, a deli, outdoor seating areas and bike storage.

The Class A building’s tenant roster includes COMBS Consulting Group, U.S. Navy Officer Recruiting, South Texas Healthcare Alliance, Transwestern and Marcus & Millichap, according to CommercialEdge.

Cushman & Wakefield Executive Managing Director Todd Mills and Director Hunter Mills represented KBS in the transaction. The Greenberg Traurig team comprised attorneys Bruce Fischer, Howard Chu and Tina Ross, as well as paralegal Amanda Kennedy.

The post KBS Sells San Antonio Office Asset appeared first on Commercial Property Executive.

Lincoln Property Co., Gigabit Fiber and Tradition Holdings have formed a partnership for the development of a data center campus in South Dallas. When complete, the facility dubbed GigaPop will include more than 800,000 square feet of data center and tech space across four buildings and boast up to 540 megawatts of power. Construction is scheduled to commence this quarter.

Designed for cloud computing and artificial intelligence users, with high-capacity and low-latency optical networks, the $1 billion project will rise on a 131-acre lot of entitled land. The site is at 1745 Stainback Road in Red Oak, Texas.

READ ALSO: More Data Centers, Please!

The campus will provide edge colocation, dark fiber and carrier-class IP transport services that will benefit the other 15 sites underway in the area, Gigabit Fiber CEO Tom Spackman said in prepared remarks. Its first component will be a 2 megawatt facility totaling 7,500 square feet.

The site is in the center of South Dallas’ data center hub, 4 miles east of Interstate 35 and 4 miles west of Interstate 45, along the recently opened Loop 9 Highway.

The location is also 24 miles from another Dallas-Fort Worth development, PowerCampus Dallas. The 115-acre data center project in Lancaster, Texas, is developed by SkyBox Datacenter in partnership with Bandera Ventures and Principal Asset Management.

Multiple data center projects underway in DFW

The South Dallas submarket currently has multiple projects underway that will deliver more than 1.5 gigawatts of capacity, according to Lincoln Executive Vice President Ryan Sullivan. Some 678 megawatts are already under construction and expected to reach completion this year and in 2026.

The metro’s largest project is a hyperscale campus in Grand Prairie, Texas, that will become one of the largest data center complexes in the country. To be developed by Provident Data Centers and PowerHouse Data Centers, the facility is expected to generate 1.8 gigawatts at full build-out.

In September, DataBank started construction on a 480 megawatts project also in Red Oak. The campus will include eight data centers.

The post Lincoln Property JV Eyes $1B Data Center Campus appeared first on Commercial Property Executive.

Radler Enterprises Inc. has purchased Legacy at Fallbrook, a 207,029-square-foot Class A office building within Houston’s Cypress West submarket. JLL negotiated on behalf of the seller.

CommercialEdge shows that EQT Exeter was the seller, which has owned and operated the property since its 2017 purchase from Liberty Property Trust.

Legacy at Fallbrook rises five stories at 10720 W. Sam Houston Parkway North. The LEED Gold-certified asset is currently 96 percent leased by tenants such as Intermodal Tank Transport, M/I Homes, Asurion and Stewart Title Co.

Completed in 2015, the building offers amenities such as a conference facilities, a fitness center and a full-service deli, as well as 1,034 parking spots. The 20-acre property is 14 miles from George Bush Intercontinental Airport and 21 miles from downtown Houston.

Additionally, Legacy at Fallbrook includes an approximately 13-acre lot for future office or industrial expansion or development, while being close to U.S. Route 290, Texas State Highway 240, Interstate 10 and to Beltway 8.

Managing Directors Kevin McConn and Marty Hogan with JLL represented the seller in the transaction.

Houston’s latest office deals

Year-to-date through November, Houston’s office investment volume reached $940 million, with office assets changing hands at an average sale price of $107 per square foot, a recent CommercialEdge report shows. On a national level, the market placed 12th in the top 25 U.S. office markets.

Recent office deals in Houston include Capital Commercial Investments Inc.’s purchase of a 327,404-square-foot building in the Energy Corridor area. Invesco Real Estate sold the property, while JLL brokered the deal. During the same period, the brokerage represented BGO in the sale of a three-building office complex in northwest Houston. The buyer of the nearly 400,000-square-foot property was Interra Capital Group.

The post Radler Enterprises Buys Houston Office Asset appeared first on Commercial Property Executive.

Investment & Development Ventures and investor Standard Real Estate have broken ground on Patriot Business Park, a three-building industrial campus in the North Houston submarket. Delivery is expected in the third quarter of 2025.

The partners teamed up for the development of this project—initially dubbed Veterans Memorial Business Park—in August. Located at 10326, 10328 and 10330 Veterans Memorial Drive, the site has immediate access to Beltway 8 and Interstate 45.

When complete, the campus will include three front-load buildings of 219,000 square feet, 151,000 square feet and 93,000 square feet, each with 32-foot clear heights. Key features include ESFR sprinkler systems and advanced design specifications tailored to accommodate tenants as small as 46,000 square feet.

Stream Realty Partners Managing Director Tyler Maner and Executive Vice President Jeremy Lumbreras are overseeing leasing efforts at the property.

Strong construction activity in Houston

About 3.3 million square feet of industrial space started construction in the third quarter of 2024, accounting for about one-third of the total 10 million square feet of space under construction last year across the Houston market, according to a Cushman & Wakefield report.

One of the projects that broke ground then was Blue Ridge Commerce Center, a five-building, 1.4 million-square-foot campus developed by Trammell Crow. Completion is expected this summer.

The report also noted the metro’s industrial demand has remained “exceptionally consistent, posting 8.4 million square feet of new leasing activity during Q3 2024.” The North submarket, with 2.3 million square feet leased, and Northwest submarket, with 1.8 million square feet leased in the third quarter, recorded the highest demand totals for the second consecutive quarter, accounting for nearly half of the quarter’s total leasing activity.

Stream Texas deals

Stream Realty Partners has been active in its home state of Texas. The firm’s Senior Vice Presidents Forrest Cook and Jeff Rein, together with Associate Connor Land, will spearhead the leasing efforts for Ironhead Commerce Center, a four-building, 906,271-square-foot industrial park in Northlake. The property is being developed by a partnership of Alliance Industrial Co. and Barings.

In Dallas-Fort Worth, Stream’s Senior Vice Presidents Sarah Ozanne and Mac Hall and Vice President Lena Thomas will manage leasing efforts at 635 Exchange, an industrial project of about 600,000 square feet. Creation and PGIM Real Estate are partners in the development that is slated to break ground this summer.

The post IDV, Standard Break Ground on Houston Industrial Park appeared first on Commercial Property Executive.

ForeFront Commercial Real Estate, along with an Ares Management Real Estate fund, has obtained a $77.4 million loan to finance the development of West Worth Commerce Center, a 992,000-square-foot industrial campus in Fort Worth, Texas. Affinius Capital originated the loan.

West Worth Commerce Center is set to include four buildings with 32-foot to 36-foot clear heights, 274 dock-high doors, 12 drive-in doors, and parking for 235 trailers and 912 cars. The property is just off Interstate 820 between interstates 30 and 20, providing connectivity to the Metroplex area.

READ ALSO: Industrial Sector Settles After Supply Surge

The development is about 35 miles from DFW International Airport and 45 miles from Dallas Love Field Airport. The location serves the area’s growing e-commerce, logistics and distribution needs, and the west Fort Worth submarket in particular  demonstrates robust absorption, Affinius Managing Director Tom Burns said in prepared remarks. 

Affinius Capital, previously known as USAA Real Estate and Square Mile Capital Management, is an institutional real estate investment firm with about $64 billion in assets under management. Last year, the company provided part of the financing for Edenvale Industrial Park, a 636,000-square-foot project in San Jose, Calif.

DFW industrial boom moderates

Industrial development in the Dallas-Fort Worth market slowed in the third quarter of 2024, according to a Colliers report. Construction activity was down to 19 million square feet, the smallest total since Q2 2017, marking a 5 percent quarter-over-quarter drop.

The decrease came on the heels of a spurt of development in response to pandemic-era demand for product. Following eight consecutive quarters of new supply of more than 10 million square feet, the third quarter deliveries dropped sharply, to 5.8 million square feet.

There is still some overhang of space, however. The vacancy rate thus remained unchanged from the previous quarter, staying at 9.6 percent, the report shows.

The post ForeFront JV Lands $77M for DFW Industrial Project appeared first on Commercial Property Executive.

WMF Investments sold the asset, according to CommercialEdge data. The acquisition was financed by Veritex Community Bank. Partners Capital’s Asset Management team plans to undertake significant capital improvements to boost both the functionality and aesthetic appeal of the property.

Completed in two phases in 2000 and 2002, Dixie Farm Business Park encompasses eight buildings spread on some 14 acres. The property features 36,900 square feet of retail space, insulated ceilings, climate control, 17-foot and 22-foot clear heights, loading doors and approximately 315 parking spaces.

READ ALSO: Industrial Sales Prices Inched Up in 2024

Partners Opportunity Fund V targets high-quality industrial, retail and office properties in major Texas and southeastern U.S. markets. During the past eight years, Partners Capital sponsored seven funds, executed more than $600 million in transactions, and currently manage a portfolio exceeding 1.4 million square feet in these regions.

Houston’s industrial scene

Located at 15255 Gulf Freeway, Dixie Farm Business Park is in Houston’s Clear Lake submarket. The property is near Interstate 45, which allows easy access across the Houston metropolitan area.

Houston has ranked third nationally in industrial sales volume, with approximately $2.8 billion during the first 11 months of 2024, according to a recent CommercialEdge report. The metro was also among the regional leaders in square footage under construction, with more than 12.3 million square feet.

The post Partners Capital Buys Houston Industrial Asset appeared first on Commercial Property Executive.

635 Exchange, the larger of the two at about 600,000 square feet, will consist of three buildings on a 36-acre site at the intersection of I-35E and I-635 in Dallas. Creation is partnering with PGIM Real Estate to develop the property.

Designed and constructed by LGE Design Build, 635 Exchange is slated to break ground in the summer of 2025, with SVPs Sarah Ozanne and Mac Hall and VP Lena Thomas of Stream Realty managing its leasing efforts. The facilities will feature flexible building heights of 32 to 36 feet, trailer parking and immediate access to transportation corridors.

In north suburban Fort Worth, Dallas-based Creation is poised to break ground on Triad 820, a three-building, 137,000-square-foot logistics center developed in partnership with a real estate fund advised by Crow Holdings Capital. Located on 9 acres along Anderson Boulevard in Haltom City, the project is a follow-up to Creation’s nearby 820 Exchange, which traded to CBRE Investment Management in 2021.

READ ALSO: Dallas Industrial Sales Take the Lead

The project will include 28-foot clear heights, front-load units, 125-foot-plus truck court depths, two storefronts per building, EV charging stations and secured yards. LGE Design Build will design and build this property as well, with an anticipated completion by late 2025. NAI Robert Lynn will oversee the leasing efforts.

The two developments represent Creation’s latest efforts in its home state, which is one of eight states in which the company is active. Since 2020, Creation has started development of about 1.3 million square feet in Dallas-Fort Worth and Houston, with plans to enter the Austin, Texas, market later in 2025. The company will also diversify beyond industrial projects next year, venturing into mixed-use developments in Texas for the first time.

DFW’s strong industrial market

Industrial development in the DFW market is still on fire, coming in second nationwide for square footage underway (after Greater Phoenix), with 16.4 million square feet under construction as of October, according to CommercialEdge data. Phoenix totals 28.1 million square feet and is also a market in which Creation has been active, recently selling the 301,000-square-foot Midway Commerce Center for $57 million.

As a percentage of existing stock, DFW’s industrial development isn’t quite as high, coming in ninth nationwide at 1.8 percent, CommercialEdge reported. Again, Phoenix is far and away the most active market, with development totaling 6.7 percent of existing stock. DFW also has plans in the works for 5.1 percent more industrial space (including projects underway), compared with 15.8 percent for Phoenix.

Investors have taken note of DFW, however, CommercialEdge noted. Industrial investment activity in Dallas is $3.8 billion year-to-date as of October, the highest total nationwide, leading such other markets as the Bay Area ($3 billion), Chicago ($2.6 billion) and Houston ($2.5 billion).

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The sale price for the La Porte, Texas, portfolio situated less than 8 miles from the Port of Houston was $244 million, as reported by IPE Real Assets.

The properties are located at: 359 Old Underwood Road; 359 Pike Court; 10100 Porter Road; 10052 Porter Road; 10051 Porter Road and 10025 Porter Road.

Stonepeak continues to invest in supply chain real estate anchored by essential port infrastructure because of its mission-critical role in local and national supply chains, according to a company statement.

READ ALSO: Top 10 Markets for Cold Storage Development

The Port of Houston is the fifth-largest container port in the U.S. Over the next five years, the port plans to invest $1.7 billion to modernize and expand. The region also has an extensive rail network anchored by Union Pacific, BNSF and CPKC.

Growing logistics portfolio

To date in 2024, Stonepeak has acquired 20 logistics assets totaling 7 million square feet including another Texas portfolio. The firm acquired two logistics assets providing a combined 1.1 million square feet in Fort Worth, Texas, in September from institutional investors advised by J.P. Morgan Asset Management. The company used a $57 million loan from PGIM Real Estate for the purchase. The assets are in the Alliance submarket of Dallas-Fort Worth, anchored by two rail lines, the BNSF Alliance intermodal terminal and the Fort Worth Alliance cargo airport.

Last month, Stonepeak purchased a 1.8 million-square-foot logistics portfolio with nine properties located near the Port of Jacksonville. The Florida port is also improving and expanding its critical infrastructure with a five-year investment of more than $1 billion. The portfolio is also near the CSX, Norfolk Southern and the Florida East Coast Railway, which are key railroad infrastructure support systems for the port’s traffic.

In April, Stonepeak acquired a three-building, 1.7 million-square-foot rail-served fully leased logistics portfolio at CenterPoint Intermodal Center-Joliet/Elwood—the largest inland port in North America—from CenterPoint Properties. The properties are adjacent to Chicago’s BNSF and Union Pacific intermodal terminals.

The post Stonepeak Pays $244M for Logistics Portfolio appeared first on Commercial Property Executive.

Additionally, the market has a strong development pipeline, with 16.5 million square feet under construction. Of that, 13.3 million square feet broke ground in the first 10 months of this year. Phoenix is the only metro to surpass Dallas, with 28.1 million square feet underway.

Despite strong sales and development figures, the metro faces some headwinds, too. With 48.5 million square feet of industrial space coming online during the same period, the Metroplex’s vacant space saw a worrisome increase: the vacancy rate almost doubled year-over-year, from 4.1 percent to 8.3 percent. That figure is also higher than the 7.2 percent national average.

Dallas sales reach new heights

Dallas’ industrial investment volume topped the national figures, taking the spotlight. The metro registered $3.8 billion in sales year-to-date as of October, marking a $1.1 billion increase compared to the same period in 2023. The market was followed by the Bay Area ($3.0 billion), Chicago ($2.6 billion) and Houston ($2.6 billion).

However, assets in the Metroplex traded for $113 per square foot on average, below the $129 national figure. The Bay Area ($465 per square foot) was the priciest market in the first 10 months of the year, while Houston ($108 per square foot) and Chicago ($100 per square foot) fared worse.

Earlier this fall, Stonepeak acquired two Fort Worth industrial assets totaling 1.1 million square feet from institutional investors advised by J.P. Morgan Asset Management. The two properties, Alliance Gateway 61 and Alliance Gateway 53, are rail-served.

Completions almost halve, still higher than national figures

Dallas’ industrial sector saw 27.4 million square feet coming online year-to-date as of October. The 99 delivered properties account for 2.8 percent of the market’s total stock, 120 basis points above the national average. However, completions in the metro almost halved year-over-year. In the first 10 months of 2023, roughly 48.5 million square feet came online across 137 properties—about 5.2 percent of the metro’s stock at the time.

Compared to peer markets, only Phoenix (29.0 million square feet) surpassed the Metroplex. The Inland Empire (19.2 million square feet), New Jersey (7.9 million square feet) and Atlanta (7.1 million square feet) trailed behind.

In November, Transwestern Development Co. completed the five-building Mid-Cities Logistics spanning 908,300 square feet. The developer broke ground on the 65-acre project in February last year and took out a $64.5 million construction loan from Fifth Third Bank.

Second-largest development pipeline in the US

In terms of the development pipeline, Dallas’ industrial sector ranked second nationally, as well. The metro had 16.5 million square feet of industrial space under construction, representing 1.7 percent of its total inventory—slightly below the 1.8 percent national figure.

Phoenix (28.1 million square feet) remained in the first place, followed by Philadelphia (12.7 million square feet), Kansas City (11.7 million square feet) and Houston (11.6 million square feet). As of October, year-to-date starts in the Metroplex account for 13.3 million square feet, a considerable decrease after averaging about 42.6 million square feet between 2021 and 2023.

In October, Hillwood announced plans to break ground on Alliance Westport 24, a 1.1 million-square-foot industrial building in Fort Worth, Texas. The speculative facility rising within a 27,000-acre campus is slated to come online in the fourth quarter of next year.

Other notable activities in the area include Foundry Commercial’s office-to-industrial conversion project in Plano, Texas. The firm is replacing a 250,000-square-foot building completed in the 1980s with two industrial facilities totaling more than 300,000 square feet. Completion is scheduled in the first quarter of 2026.

Vacancy rate more than doubles as facilities come online

Dallas’ industrial vacancy rate as of October reached 8.3 percent, more than double the 4.1 percent registered during the same month in 2023. Additionally, the figure was 110 basis point above the 7.2 percent national index. Among other major industrial markets, Indianapolis (9.1 percent) posted a higher vacancy rate, while Atlanta (6.1 percent) and the Orange County (4.3 percent) had less available space.

During the same month, the Metroplex’s average rent clocked in at $6.17, registering an 8.1 percent growth compared to year-ago figures. Orange County ($15.95) was the priciest metro, followed by Los Angeles ($15.05), the Bay Area ($13.49) and Miami ($12.07).

Earlier this year, Google signed a 1.1 million-square-foot lease within Majestic Realty’s Creek Business Park in North Fort Worth, according to CommercialEdge. This extension is part of the company’s strategy to invest $1 billion in the state to support cloud and data infrastructure.

The post Dallas Industrial Sales Take the Lead appeared first on Commercial Property Executive.

Transwestern Real Estate Services announced Ezee Fiber has committed to 94,179 square feet in a 567,333-square-foot property owned by Prescott Group in the city’s Southwest Freeway submarket.

Tenants currently use this property at 5959 Corporate Drive primarily as an office and contact center building. Still, Todd Smith, chief technology officer of Transwestern’s Technology Properties Group, told Commercial Property Executive that this campus has significant immediate capacity for data center users. 

“This property with data center investment of up to and even beyond $500 million is feasible,” Smith said. “There’s room for the load of Nvidia chips and AI clusters today. MWs of capacity are there right now. There’s full fiber and power redundancy. And it’s ready to go to bring more power through separate vaults and separate lines if we need to.” 

READ ALSO: Placer.ai Office Index—October 2024 Recap

Transwestern’s Michelle Wogan and Paula Musa represented Prescott Group during lease negotiations. Wogan said this Houston Technology Center building is unique to the Houston market, given it has about 80,000 square feet of large floorplates and warehouse space, including four dock-high loading areas.  

“It’s the best of both worlds—office and warehouses/basements—something no other site in Houston can provide,” Wogan told CPE. 

“It’s an easy location to get in and out of and is full of the amenities that tenants such as Ezee Fiber wanted: a tenant lounge, a full-service onsite restaurant, conference rooms, a fitness center, move-in-ready office space, onsite security and onsite management.” 

Smith said the building (developed in 1977) was used for many large call centers for a long time, “but that’s an industry that has fallen on hard times lately,” and the fiber needed for those applications still exists. 

Meanwhile, Ezee Fiber will consolidate its two Houston locations into a single, larger corporate headquarters at the property, which can facilitate the thriving company’s expanding operations and ongoing growth in the market. 

The post Prescott Group Lands HQ Lease in Houston appeared first on Commercial Property Executive.

ViaWest Group has sold 5 South Commerce Center, a 172,847-square-foot Class A industrial property in Salt Lake City. STAG Industrial acquired the single-tenant facility. Cushman & Wakefield worked on behalf of the seller.

ViaWest Group purchased the development site in early 2022, marking its debut in the Salt Lake City market. The property came online in late 2023 on an 11-acre site.

The company developed the property using an approximately $18 million construction loan originated by Western Alliance Bank, according to CommercialEdge. CHEP USA fully occupies the property, the same source shows.

READ ALSO: Industrial Demand Slips, But Avoids a Slump

Located at 3175 W. 500 S., the facility has access to interstates 215 and 80 and is less than 5 miles west of downtown Salt Lake City. Additionally, 5 South Commerce Center is close to Salt Lake City International Airport, which is currently undergoing a $4.1 billion renovation and expansion with completion scheduled for 2026.

The building includes 32-foot clear heights, ample column spacing, an ESFR sprinkler system, four grade level doors, 35 dock-high doors, a 2,500-square-foot office component, a nearly 1.8-acre site storage area and 146 vehicle parking spots.

Executive Vice Chairmen Will Strong, Rick Ellison and Jeff Chiate, together with Directors Michael Matchett and Aubrie Monahan, Senior Associate Molly Hunt and Associate Matthew Leupold with Cushman & Wakefield’s National Industrial Advisory Group worked on behalf of the seller. The company’s Senior Director Phillip Eilers and Director Jon Schreck assisted in providing leasing advisory during negotiations.

Deals volume expected to pick up

Salt Lake City’s industrial market saw a significant slowdown during the third quarter of 2024, according to a recent CBRE report. There were just under 1 million square feet leased, marking the lowest amount of leasing activity in a single quarter since the first quarter of 2014.

The industrial investment volume was modest, with only 357,864 square feet changing hands during that period, the same report shows. Even so, a boost in sales is expected following the recent Federal Reserve interest rate cuts.

The post STAG Industrial Picks Up Salt Lake City Asset appeared first on Commercial Property Executive.

The facility is slated to open in 2027 and will add 1 million square feet of capacity while decreasing carbon emissions by 30 percent and water usage by 1.5 million gallons per year.

Toyota Kentucky officials said the new paint facility will give customers more color options but will also reduce production lead time, improve process accuracy, further support plant efforts to increase flexibility for future vehicle production and continue Toyota’s goal to achieve zero carbon emissions by 2050. It is not expected to add jobs to the Scott County campus. The central Kentucky site is about 16 miles north of Lexington, Ky.

It’s the second-biggest announcement made about the Toyota Kentucky campus—already the automaker’s largest global manufacturing plant—this year. In February, Toyota said it would invest $1.3 billion to bring assembly of an all-new, three-row battery electric SUV to the U.S. market in 2026. Although it didn’t add new jobs to the campus which employs nearly 10,000 people, the company said it would help with future EV production, including with addition of a line to assemble battery cells into packs for use in other EVs.

The investments are being rewarded with major incentives from the state. The Kentucky Economic Development Finance Authority provides as much as $267.5 million in cumulative tax incentives based on the creation of at least 8,950 jobs per year at the site, paying a minimum of $31.89 per hour, according to the Louisville Business First publication. If it meets its annual targets, the company is eligible to keep part of the new tax revenue it generates, the publication reported.

READ ALSO: Automation and AI Shape Industrial Demand

Since breaking ground at the Georgetown site in 1986, Toyota has invested more than $11 billion in the manufacturing complex. Toyota Kentucky is currently assembling some of the most popular vehicles in the Toyota lineup, including the Cambry hybrid and RAV4 hybrid.

Toyota EV investments

Toyota Kentucky became the carmaker’s first U.S. plant to manufacture hybrid EVs in 2006. It was later selected to assemble fuel cell modules for use in hydrogen-powered, heavy-duty commercial trucks. The plant is also important to Toyota’s global electrification strategy which aims to offer electric or hybrid versions of every vehicle model by 2025.

Since Toyota Kentucky opened in 1988, more than 12 million vehicles have been manufactured there. Current production capacity is approximately 550,000 vehicles and 600,000 engines annually, according to Gov. Andy Beshear’s office. More than 100 of the 350 suppliers across the nation serving Toyota are located in Kentucky, the governor’s office added.

Since 2020, Toyota has announced new investments of more than $20 billion into its U.S. manufacturing operations to support electrification efforts. Increasing battery electric vehicle production in the U.S. advances Toyota’s portfolio approach to electrification.

In October, Toyota made an $8 billion investment at its 1,825-acre North Carolina EV battery manufacturing plant in Liberty, N.C., near Greensboro, N.C. The investment will add 3,000 jobs for more than 5,000 jobs and create a 7 million-square-foot campus equal to 121 football fields. It boosted Toyota’s investment in the Triad region to nearly $14 billion and solidified Toyota North Carolina’s position as the company’s epicenter of lithium-ion battery production in North America, according to the company. It was the third expansion for the megasite since Toyota first unveiled a $1.3 billion investment in 2021.

The post Toyota Launches $922M Plant at Kentucky Manufacturing Campus appeared first on Commercial Property Executive.

A joint venture between Constellation Real Estate Partners and a real estate fund advised by Crow Holdings Capital has signed US ELogistics Service Corp. as a tenant at Constellation Post Oak, a 424,011-square-foot industrial park in Houston.

The logistics firm will fully occupy the property’s Building 1, which measures 302,825 square feet. Colliers represented the landlord, while Lee & Associates negotiated on behalf of the tenant.

Located at 14942-15012 S. Post Oak Road, Constellation Post Oak comprises the cross-dock Building 1, featuring a 36-foot clear height, and the front-load Building 2, a 121,186-square-foot facility with a clear height of 32 feet.

READ ALSO: E-Commerce Growth Revives Industrial Market

Both buildings share a 220-foot truck court, with an extra 185-foot court pertaining to Building 1. Parking includes a total of 270 car and 52 trailer spaces.

The 2023-completed campus is currently 82 percent leased. Signage manufacturing company D&R Signs also recently committed to 44,978 square feet at the property, with the assistance of Stream Realty Partners.

The 33-acre property is less than 7 miles from U.S. Route 90 and Interstate 69. The Port of Houston and the William P. Hobby Airport operate roughly 20 and 13 miles away, respectively.

Colliers Principals & Executive Vice Presidents Zack Taylor and Barkley Peschel represented Constellation Real Estate Partners. Lee & Associates Executive Principal Robert McGee negotiated on behalf of US ELogistics Service Corp.

Metro Houston industrial vacancy tightens

Greater Houston’s industrial leasing activity totaled 8.7 million square feet in the third quarter, according to a Colliers report. The volume marked an 18.7 percent decrease over the quarter.

Despite the drop, the metro’s vacancy rate dipped 40 basis points quarter-over-quarter, clocking in at 7.0 percent in September, the report shows. Less product hit the market, Houston witnessing just 2.8 million square feet of industrial deliveries in the third quarter, the lowest level since 2018.

In one of September’s deals, Ares Management secured a full-building lease at its 192,400-square-foot infill distribution facility. Safespill agreed to occupy the space.

The post Constellation, Crow Holdings Ink Houston Industrial Lease appeared first on Commercial Property Executive.

M2G Ventures, in partnership with Pennybacker Capital, has sold a 241,004-square-foot industrial building within its Inbound on Inwood redeveloped park in Addison, Texas. The buyer is WareSpace, a Maryland-based provider of micro warehousing space. Rich Young Co. and Lee & Associates worked on behalf of the seller.

The asset is within the Platinum Corridor South submarket of Dallas-Fort Worth, at 14621 Inwood Road. The facility is located on the North parcel of the multi-building industrial park.

The property dates back to 1977 and includes sky lights, an office build-out component, loading doors, dock levelers and bumpers, a large truck court and 58 vehicle parking spots. Sitting on a nearly 10-acre lot, the building is 12 miles from Dallas, 17 miles from Dallas Fort Worth International Airport and within 40 miles of Fort Worth, Texas.

READ ALSO: Top 5 Markets for Industrial Deliveries

Currently there are two buildings available for sale within the Inbound on Inwood industrial complex, namely the remaining 731,103-square-foot building at 14303 Inwood Road and the 154,793-square-foot property at 4404 S. Beltwook Parkway.

Back in late 2020, M25 and Pennybacker acquired the 1.1 million-square-foot property from Tuesday Morning. The asset served as its distribution hub and corporate headquarters. The portfolio deal included six properties with industrial, office and retail space that traded at an estimated sale price of $70.3 million, according to CommercialEdge. The sale was completed out of a Chapter 11 bankruptcy and closed in early 2021.

A short history of the redevelopment

The partnership transformed and upgraded the asset into a modern industrial park, rebranding it into Inbound on Inwood. The redevelopment included major upgrades and capital improvements for both interiors and exteriors.

Rich Young Co.’s President Rich Young Jr. and Principals Adam Graham and Stephen Williamson with Lee & Associates negotiated on behalf of the seller. The same team is marketing for sale the remaining industrial buildings on the 33-acre South parcel of the campus.

Inbound on Inwood is not the only redevelopment project on which M2G Ventures worked together with Pennybacker Capital in the Metroplex. In early 2021, the companies partnered to redevelop a 250,000-square-foot brick warehouse in Dallas into an urban industrial project. After its completion, the project was rebranded as PROTO Park and, earlier this year, was sold by the owners to The Bendetti Co.

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Gas firm Merit Energy Co. has signed a 104,034-square-foot lease at Nuveen Real Estate’s Two Lincoln Centre, a 620,000-square-foot office building in Dallas. The company will relocate its headquarters to floors 10 to 12 within the 19-story property.

Cushman & Wakefield brokered the deal on behalf of both parties. To accommodate the agreement, three tenants were moved within the Lincoln Centre campus.

Merit Energy will move from its current space at Galleria North Tower II, where it occupies nearly 127,000 square feet. That building, owned by DWS, encompasses more than 306,000 square feet and is less than 2 miles from the firm’s future location.

READ ALSO: Return-to-Office Traffic Reaches Record Level

Located at 5420 Lyndon B. Johnson Freeway, Two Lincoln Centre is part of a campus that comprises three office towers and a three-story creative office facility, along with a 500-key hotel. Amenities within the Lincoln Centre complex include conference centers with video conference capabilities, a food hall, a fitness center and a park.

Nuveen acquired the campus in December 2005 for $255 million, according to CommercialEdge information. MetLife Real Estate Investment sold the asset.

Built in 1981, Two Lincoln Centre was completely renovated in 2004 and underwent further upgrades in 2021. The Class A high-rise features floorplates averaging 33,529 square feet and 12 passenger elevators, as well as more than 2,020 parking spaces.

The property provides easy access to Interstate 635. Downtown Dallas is some 12 miles away, while the DFW International Airport is 15 miles southwest.

Cushman & Wakefield Vice Chair Matt Schendle, Managing Director Zach Bean and Senior Associate Mary Frances Burnette represented Nuveen, while Executive Vice Chair Jeff Ellerman and Executive Vice President John Ellerman negotiated on behalf of Merit Energy.

More vacant office space in the Metroplex

Dallas-Fort Worth’s office vacancy rate at the end of October clocked in at 23 percent, well above the 19.4 percent national index, according to a CommercialEdge office report. The metro registered a 350-basis-point increase year-over-year in vacant space. Only Austin (27.7 percent) and Houston (24.3 percent) fared worse in the South region.

In August, Bank of America signed a 553,799-square-foot lease renewal at Hallmark Center I in Addison, Texas. The entity occupies the whole campus owned by Office Properties Income Trust, while The RMR Group is the manager of the property.

A month earlier, Santander Consumer USA renewed its 211,087-square-foot lease at 1601 Elm St. Pacific Elm Properties owns the 50-story, 1.4 million-square-foot mixed-use tower that was completed in 1981.

The post Nuveen Signs 104 KSF Tenant in Dallas appeared first on Commercial Property Executive.

CJ Logistics America has leased Southport Logistics Park’s Building 1, a 1.1 million-square-foot warehouse in Wilmer, Texas, The three-building, 252-acre development owned by Logistics Property Co. is now fully leased.

The commitment marks an expansion for the supply chain subsidiary of South Korea-based CJ Group. The logistics firm also has a warehouse at 1501 Southport Parkway in Wilmer, less than 2 miles from the new location.

JLL’s Rob Wheeler, Trevor Ragsdale, Melissa Holland and JM Priddy of JLL represented the tenant. Kacy Jones and John Hendricks of CBRE, together with Max Mueller, Daniel Davidson, Jonathan Snow and J.C. Hay of LogiPropCo, negotiated on behalf of the owner.

A South Dallas industrial campus

Located in the South Dallas submarket, Southport Logistics Park is 1 mile east of Interstate 45, 5 miles south of Interstate 20 and across from the Union Pacific Dallas Intermodal Terminal. Downtown Dallas is some 15 miles away.

Building 1 is a cross-dock facility with a 36-foot clear height, 200 dock doors, 376 car stalls, 306 trailer stalls, 60-foot staging area, 570-foot building depth, 54-foot by 50-foot column spacing and an ESFR fire suppression system.

LogiPropCo signed Nike as a tenant for the 1 million-square-foot Building 3 in January 2023 and there is still a build-to-suit opportunity for a facility of up to 935,000 square feet. When complete, Southport Logistics Park will encompass more than 3.6 million square feet, according to CBRE.

Growing industrial portfolio

Chicago-based LogiPropCo focuses on the acquisition, development and management of logistics properties in key North American markets. Its portfolio comprises 57 buildings totaling 23.9 million square feet, with an estimated value of more than $4.1 billion.

The firm has made other investments in Texas, including its first foray into Austin this summer. The company broke ground on a two-building, 408,160-square-foot development in July, with delivery expected in the second quarter of 2025.

A month earlier, LogiPropCo signed a full-building, 550,000-square-foot lease with DW Distribution for its Southern Star Logistics Park in Midlothian, Texas. The agreement also included 25 acres of adjacent outdoor storage land, as well as dual-rail service.

Elsewhere in the U.S., the firm completed its first industrial development in metro Phoenix. The 615,000-square-foot speculative campus in Mesa, Ariz., has facilities ranging from 93,000 to 290,000 square feet.

The post Logistics Property Co. Lands 1.1 MSF Tenant appeared first on Commercial Property Executive.

Longpoint Partners has acquired Valley View Business Center, a 414,871-square-foot industrial building in Irving, Texas, within the Las Colinas submarket of Dallas-Fort Worth.

Cushman & Wakefield worked on behalf of the seller, Brookfield Asset Management. The property is fully leased to ASC Engineered Solutions and OMEGA Environmental Technologies.

Valley View Business Center is a Class A facility at 1401 Valley View Lane. The property came online in 2009 and includes cross-dock configuration, 30-foot clear heights, loading doors, dock levelers and bumpers, ESFR sprinkler systems, an office build-out component, an ample truck court and 188 vehicle parking spots.

The asset is on a 21-acre lot, allows easy access to Interstate 30 and is close to Dallas-Fort Worth International Airport. Additionally, Dallas is 16 miles away, Fort Worth is 21 miles southwest and Fort Worth Meacham International Airport is 22 from the property.

Vice Chairman Jim Carpenter, Executive Managing Director Jud Clements, Executive Director Robby Rieke and Associate Trevor Berry with Cushman & Wakefield negotiated on behalf of Brookfield Asset Management.

DFW leads in sales

The nation’s total industrial transaction volume during the first three quarters of 2024 decreased by $1.1 billion, when compared to the same period last year, according to the latest CommercialEdge report. Oppositely, the Dallas-Fort Worth market’s deal volume went up by $1.1 billion through this periods, in comparison with 2023 data.

Year-to-date through October, Dallas-Fort Worth has maintained its position as the U.S. market with the highest sales volume. Industrial deals in the Metroplex totaled $3.8 billion, with properties trading at an average price of $113 per square foot, below the national average of $129 per square foot.

Recent deals in the metro include Bixby Capital Management’s acquisition of a 533,632-square-foot industrial complex in Mesquite, Texas. The three-building property changed hands from Huntington Industrial Partners in October.

Last month, Basis Industrial purchased an eight-property light industrial portfolio in the Metroplex from Birtcher Anderson & Davis and Belay Investment Group. The buyer secured $138 million in acquisition funding from Beach Point Capital Management.

The post Longpoint Picks Up 415 KSF Distribution Center in DFW appeared first on Commercial Property Executive.

The downtown Austin building is fully leased to tech giant Google until 2038. Eastdil Secured served as the exclusive advisor on the transaction.

The purchase price, according to a Cousins presentation on the deal, is “well below replacement cost.” Current total rents in the area averages $56.22 per square foot, according to CommercialEdge data, with net rents averaging $40.12 per square foot. Average occupancy in the area is 81.2 percent.

Trammell Crow Co. completed the 804,000-square-foot, 35-story property in 2022 on a site that had been a vacant lot throughout the 2010s.

The building, which is certified LEED Platinum, includes 8,100 square feet of retail, a multi-level parking structure with 1,365 spaces, a fitness center and views of Lady Bird Lake from landscaped terraces. It is near the Second Street entertainment district in downtown Austin.

The nickname Sail Tower speaks to the sail-like design by the renowned Pelli Clarke & Partners. Other well-known office designs by the firm include Salesforce Tower in San Francisco, One Congress at Bulfinch Crossing in Boston and Petronas Towers in Kuala Lumpur, Malaysia.

Atlanta-based Cousins is no stranger to the Austin market, with an existing 1.7 million-square-foot office portfolio downtown near the Sail Tower. The REIT is also the largest owner of office space in the Domain district in North Austin, an interest that includes 2.5 million square feet in 11 buildings. Other Cousins tenants in the market include Adobe, Amazon, Expedia and Fidelity.

READ ALSO: When Office Meets Hospitality: A Love Story

Earlier this year, IBM leased 320,000 square feet at Domain 12. Big Blue will assume the lease for Meta Platforms on Jan. 1, 2026. The agreement was also extended from 2031 through 2040.

“We view this lease as a strong signal that the technology sector will continue to be highly invested in the Austin market, and particularly the Domain, over the long term,” Richard Hickson, Cousins’ executive vice president of operations said during the company’s third quarter earnings call in October.

“We know of a number of other technology companies that we already do business with, and some others that we don’t currently do business with, that are searching in the Austin market specifically,” Hickson said. “So, we feel good about the amount of activity that’s starting to come to fruition.”

Austin vacancies high, development still ongoing

For any tech companies who want to be in post-pandemic Austin, there is a large selection of office space on the market, which is characterized by sluggish demand and reduced office utilization, as well as continued development.

As a result, Austin office vacancy now stands at 27.7 percent, tied with San Francisco for the highest U.S. rate, and up 710 basis points from a year ago, according to CommercialEdge data.

Currently 3.5 million square feet of office is in the development pipeline, or 3.7 percent of its existing stock. On a percentage-of-stock basis, that is second-highest in the nation, CommercialEdge noted. Austin’s office footprint would grow by 12.1 percent, if current and planned projects all come to fruition.

Investors have backed away from the Austin office market lately, though some are in town for the discounts. The market, which led the nation in sale prices in September, saw a sharp decline from $379 per square foot that month to $287 per square foot by November. The drop reflects an increase in properties being sold at discounted prices, CommercialEdge reported.

The post Austin Tower Commands $522M appeared first on Commercial Property Executive.

A joint venture between Cypress West Partners and TPG Angelo Gordon has acquired Renaissance Medical Center, a 112,192-square-foot medical outpatient building in Bountiful, Utah, a Salt Lake City submarket. The duo took out a permanent loan from Capital One, according to CommercialEdge.

Healthcare Realty sold the asset, the same source shows. The company had purchased it in June 2008 from Broadhead & Co. for $30.2 million.

Newmark Healthcare Capital Markets represented Cypress West Partners and arranged the acquisition financing.

The five-story building came online in 2004 and includes almost 3,900 square feet of first-floor retail space. The facility features floorplates averaging 28,179 square feet, two passenger elevators and about 435 parking spaces.

READ ALSO: Why the Medical Outpatient Sector Is Poised for Growth in 2025

MountainWest Surgical Center, an ambulatory surgical center owned by HCA Healthcare, anchors the Class A property. The roster also includes eight other medical tenants, with specialties and services including orthopedics, physical therapy, imaging, spine and urology.

Located at 1551 S. Renaissance Towne Drive, the facility is 12 miles from Salt Lake City International Airport, while downtown Salt Lake City is 9 miles away. Additionally, the building is less than 2 miles from Lakeview Hospital.

A $300 million joint venture

The partners purchased the property through their $300 million venture that was announced earlier this year. The companies are focusing on high-growth West Coast and Sunbelt markets, targeting core-plus and value-add returns through leasing, repositioning and redevelopment of medical office assets.

The duo’s first acquisition, which closed in March, involved an 86,000-square-foot medical building in Scottsdale, Ariz. Healthpeak Properties sold the asset.

A few months later, the joint venture purchased Chula Vista Medical Arts II, a nearly 37,000-square-foot medical outpatient building in Chula Vista, Calif. Turner Impact Capital sold the 1985-completed property.

The post Cypress West, TPG Buy Salt Lake City MOB appeared first on Commercial Property Executive.

JLL also secured the acquisition financing for AEW from Manulife Real Estate Finance, in the form of what the firm described as low-leverage, fixed-rate financing. The transaction’s dollar value was not disclosed.

The seller was a partnership led by Barshop & Oles Co., a privately owned, Austin-based development and management firm that specializes in grocery-anchored neighborhood and community shopping centers.

Bar W Marketplace is at 19348 Ronald Reagan Blvd., at the southeast corner of Ronald Reagan Boulevard and SH-29 in Williamson County. The location reportedly benefits from easy access to major thoroughfares and proximity to multiple residential communities and ongoing developments.

READ ALSO: How Dining Trends Are Reshaping Shopping Centers

The retail center was built between 2022 and 2024 and is fully leased. It features five ground-leased pads and a mix of tenants that includes Chase Bank, Wells Fargo, Whataburger, Chili’s, Torchy’s Tacos and 7Brew Coffee.

The JLL Capital Markets Investment and Sales Advisory team representing the seller was led by Senior Managing Directors Barry Brown and Chris Gerard and Director Erin Lazarus. The JLL Debt Advisory team was led by Senior Managing Director Doug Opalka and Director Jackson Finch.

Shortage of retail space supply

The Austin retail space market is seeing “a significant slowdown in net absorption due to limited new space and a tight vacancy rate of 3.4 percent, despite healthy leasing demand,” according to a third-quarter report from local firm Partners Real Estate.

Of the 1.1 million square feet of net absorption so far this year, Burlington and The Picklr have been prominent tenants. The latter is a nationwide franchiser of pickleball clubs that currently has about 10 locations in Texas.

Partners Real Estate reports that both new deliveries and the development pipeline are slowing down, causing predictions of modest rent increases from tightening supply.

Just a few weeks ago, Partners Capital sold San Marcos Place, a 73,105-square-foot retail center in San Marcos, Texas, midway between Austin and San Antonio, to an undisclosed local buyer. SRS Real Estate Partners Senior VP Cathy Nabours and VP Kyle Shaffer represented the seller.

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The firm recently broke ground on 121 Logistics Park and expects completion in the third quarter of 2025. Located in the North DFW Airport submarket, it will be aimed at tenants seeking 85,000 to 339,000 square feet of space.

The urban infill development is located directly off State Highway 121 and will offer immediate access to one of the main transportation arteries in the Dallas-Fort Worth region. Building 1 will be a rear-load 257,591-square-foot facility with a 36-foot clear height, 7-inch reinforced concrete slab, 49 dock-high doors, 185-foot truck court and at least 67 trailer parks. Building 2 will be an 81,689-square-foot front-load asset with a 32-foot clear height, 6-inch reinforced concrete slab, 18 dock doors, 130- to 185-foot-deep truck court and 12 trailer parks.

READ ALSO: Top 10 Markets for Cold Storage Development

The North Dallas submarket is one of the most desirable submarkets in the DFW industrial market and the country due to its high barriers of entry, close proximity to executive housing and ample blue-collar labor force, according to a company statement.

Lovett Industrial has a partnership with the city of Coppell and city of Lewisville to create the industrial park on land spanning both communities. Construction financing is being provided by Comerica Bank.

Marketing and leasing for 121 Logistics Park will be handled exclusively by Adam Graham and Alex Wilson of Lee & Associates. Bob Moore Construction is the general contractor. Meinhardt & Associates Architecture is the lead architect and Kimley-Horn & Associates is the project civil engineer.

Growing industrial portfolio

121 Logistics Park will be the ninth industrial development for the privately held logistics real estate firm in the Dallas-Fort Worth area. Other projects include Trinity West Phases I & II, Innovation Ridge Logistics Park, Wylie Business Center, Addison Innovation Center, Lovett 35 Logistics Park, Garland Innovation Center and Texport Logistics Center. The projects total more than 5.4 million square feet of completed properties or assets that are under construction in the region.

Lovett Industrial’s national portfolio comprises approximately 17 million square feet of completed, acquired and under-construction warehouses and more than 10 million square feet of warehouses planned for future development.

In addition to Texas, the firm has been busy in several markets across the U.S. in recent months. In October, Lovett Industrial broke ground on Highway 1 Commerce Center, a 176,105-square-foot speculative development in Philadelphia. The project, slated for delivery in the third quarter of 2025, will be focused on the need for Class A last-mile space near major highways. The 14.5-acre site has direct access to downtown Philadelphia and the broader market via Highway 1 and the Pennsylvania Turnpike and is also close to Interstate 95.

The firm has also been developing industrial assets in several Western states. In July, Lovett Industrial announced plans to develop Schaefer Logistics Center, a 298,000-square-foot property in the Inland Empire West submarket. The Chino, Calif., project is slated for completion at the end of 2025.

In August, Lovett Industrial completed construction of Broadway Logistics Center, a 201,329-square-foot Class A rear-load building in Denver. The firm had broken ground on the speculative project in 2022.

The post Lovett Industrial Breaks Ground on DFW Logistics Park appeared first on Commercial Property Executive.

Newmark Healthcare Capital Markets has arranged $12.5 million in refinancing for 3501 MedCenter, a 146,000-square-foot medical office building in Amarillo, Texas. Regional lender East West Bank provided the note to the borrower, Equity, according to CommercialEdge information.

The firm had purchased the asset in November 2020 from McCartt & Associates, the same source shows. The deal involved a $13.4 million loan from Franklin BSP Realty Trust.

The single-story facility came online in 1986 and was 87 percent leased at the time of the current transaction. The tenant roster includes Spine & Sports Wellness Clinic, Lonestar Dental Center, Amarillo Gastroenterology and Northwest Texas Healthcare System.

READ ALSO: Getting in the Heads of MOB Tenants

Located at 3501 S. Soncy Road, the more than 11-acre property is some 15 miles from the Rick Husband Amarillo International Airport. Other medical providers in the area include Harrington Regional Med Center, Northwest Texas Healthcare System and Amarillo VA Health Care System.

Newmark Senior Managing Directors John Nero and Michael Greeley, Executive Managing Directors Jay Miele and Ben Appel, together with Associate Conor Hilton and Associate Directors Ron Ott and Chad Prescher, arranged the deal.

MOB sector poised for growth

The medical office real estate market continues to thrive. A Savills report predicts a 26 percent increase in outpatient demand over the next 10 years, with growth driven by the aging population. Despite challenges in the commercial real estate sector due to economic uncertainty, outpatient facilities remain highly sought-after.

Favorable economic factors, such as interest rate reductions, are expected to boost investment in medical office properties. However, the demand for these facilities is putting pressure on the medical labor market, which is already experiencing a shortage of specialists, particularly physicians and nursing staff.

The post Equity Lands Refi for 146 KSF Texas Panhandle MOB appeared first on Commercial Property Executive.

Invesco Real Estate was the building’s previous owner, according to CommercialEdge data. The transaction’s dollar value was not disclosed.

Energy Crossing II was completed in 2014 on a 5.47-acre site at 15011 Katy Freeway. The eight-story property offers flexible floorplates averaging 42,648 square feet. Amenities include LEED Platinum certification, a fitness center and an on-site parking garage. The building is currently about 30 percent leased; JLL described it as positioned to capitalize on the office market’s “flight-to-quality” trend.

The building’s major tenant currently is MODEC Inc., at 168,400 square feet, according to CommercialEdge data. Founded in Tokyo in 1968, the company is a worldwide supplier and operator of offshore floating platforms for the oil and gas industry.

READ ALSO: Return-to-Office Traffic Reaches Record Level

The site is adjacent to I-10, providing access to Beltway 8 and Westpark Tollway, as well as downtown Houston, the Galleria, the George Bush Intercontinental Airport and several premier residential areas, including The Villages, Briar Forest and River Oaks.

The JLL Capital Markets Investment Sales and Advisory team that represented the seller was led by Managing Director Kevin McConn and Senior Director Rick Goings.

Middling market

Houston’s office market presents a mixed picture, with modest positive net absorption in the third quarter, ending a four-quarter streak of negative absorption, according to a new report from JLL. Overall vacancy is 26.4 percent, however, and the report described recent leasing activity as moderate.

The West Houston submarket (Katy Freeway East, Katy Freeway West and Westchase) saw 630,997 square feet of positive absorption, far outpacing the Houston region as a whole.

In June, Howard Hughes Holdings Inc. secured a $130 million refinancing package for 9950 Woodloch Forest Drive, a 601,000-square-foot Class A office building in The Woodlands, Texas, from Wells Fargo and Argentic Real Estate Finance. The deal was significant for being Howard Hughes’ largest debt maturity in the following two years.

The post Capital Commercial Buys Houston Office Building appeared first on Commercial Property Executive.

Weber & Co. plans to develop a Target-anchored, 225,000-square-foot retail center in Little Elm, Texas. The company acquired the development site earlier this month.

The Target store is set to encompass some 148,000 square feet, according to The Dallas Morning News. Its completion is expected in the spring of 2026.

Weber & Co. will name the future retail center Bates Towne Crossing, in honor of the the family which had owned the site for the past 157 years. 

DB2RE founders David Davidson Jr. and Edward Bogel represented the seller. Furthermore, DB2RE Director of Suburban Land Ryan Turner and Retail Specialist Jonathan Cooper will oversee leasing at the shopping center.

The property is at the intersection of U.S. Highway 380 and Ryan Spiritas Parkway. Several supermarkets, such as a Walmart Supercenter, Aldi, 7-Eleven, Walgreens and Chick-fil-A, are within a 2-mile radius. GBT Realty Corp. has also made plans for a Sprouts-anchored retail center at the same intersection as Weber’s site, on the northeast corner. H-E-B also owns property west of the future Target-anchored retail center. 

Weber & Co. owns another 10 retail centers in the Dallas-Fort Worth market—in McKinney, Grand Prairie and Fort Worth—totaling roughly 815,000 square feet, according to CommercialEdge information.

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Indus Realty Trust has acquired Phoenix Airport Logistics, a 393,484-square-feet warehouse/distribution center in Phoenix’s airport submarket. CBRE Investment Management sold the asset for $72.4 million, according to public records. The building was fully leased to five tenants at the time of the sale, including Amazon. Cushman & Wakefield advised the seller.

Ahead of the recent sale, the property carried a $27.2 million loan originated in 2020 by Pacific Coast Capital Partners. The property last traded in 2019, when Principal Real Estate Investors sold it for $38.8 million.

The cross-dock distribution center located at 3333 S. Seventh St. came online in 2016 It includes a 36-foot clear height, 96 dock-high doors and 62 trailer parking spaces. It is located near both downtown Phoenix and Sky Harbor Airport.

Indus Realty Trust, which specializes in logistics properties, owns or has majority ownership in 55 properties and projects under development, totaling 9.3 million square feet. Indus itself is largely owned by affiliates of Centerbridge Partners, a private investment firm, and GIC, a global institutional investor. Also, a subsidiary of the Abu Dhabi Investment Authority owns an interest in Indus.

Earlier this year, Indus acquired a recently completed 550,243-square-foot industrial facility in Jacksonville, Fla., that is fully leased to European retailer Primark. VanTrust Real Estate was the seller.

As for the Phoenix deal, Cushman & Wakefield Executive Vice Chair Will Strong, Director Michael Matchett and Senior Associate Molly Hunt brokered the deal as exclusive brokers.

Supply wall hits Phoenix industrial

The Phoenix industrial vacancy came in at 12.7 percent in the third quarter of 2024, the sixth consecutive quarterly rise, according to Cushman & Wakefield. The reason is straightforward: a rush of supply into the market immediately after 2020 that hasn’t been matched by demand, even though demand is still higher than it was in 2019.

Net absorption marketwide in the third quarter came in at 6.1 million square feet, a quarter-over-quarter drop from 8.1 million square feet. A lot of recent absorption has been build-to-suit completions, such as for TSMC’s 4.3 million-square-foot facility, the C&W report noted. The pace of construction, however, is now tapering off.

The Phoenix Airport submarket had a vacancy rate of only 6.5 percent in the third quarter, much lower than the metro figure, the same source shows. But even the Airport submarket is seeing a supply/demand imbalance: Year-to-date net absorption in the area is about 228,200 square feet, while construction completions in the third quarter alone totaled more than 1 million square feet.

The post Indus Enters Phoenix With $72M Buy appeared first on Commercial Property Executive.

The city of Austin, Texas, has acquired One and Two Barton Skyway, two office buildings totaling about 386,000 square feet in Southwest Austin. Brandywine Realty Trust sold the assets for $107.6 million, or $275 per square foot. The buyer expects to spend an additional $3 million on renovations and $9 million on design services.

The buildings will serve as consolidated public safety headquarters for Austin Police, Austin Fire and the Austin-Travis County Emergency Medical Services, currently scattered across the city.

This new location will generate significant cost savings and increased efficiencies, said Mayor Kirk Watson in prepared remarks. Building a new comparable facility would have cost approximately $234 million, or $600 per square foot, more than double the price of buying the existing assets, according to the city.

READ ALSO: Austin Office Market Commands High Prices

Located at 1501 and 1601 S. MoPac Expressway and completed in 1999 and 2000, both Class A buildings stand four stories tall and encompass roughly 195,000 square feet each. Also, both have 50,000-square-foot floorplates. The campus the buildings are in, located near Zilker Park, includes two five-level parking garages, each with more than 780 parking spaces.

The Barton Skyway office park, situated on 35 acres, comprises four buildings. Brandywine still owns Four Barton Skyway, which is currently 94 percent leased.

Brandywine’s strategy

The sale of the two buildings is consistent with the REIT’s capital recycling and portfolio management objectives, Jerry Sweeney, president & CEO, stated in prepared remarks.

Sweeney also noted the REIT’s commitment to Austin. He cited the company’s development of 405 Colorado, a 25-story Class A office building, and Uptown ATX, a 66-acre master-planned development that’s a cornerstone of Austin’s emerging second downtown. Brandywine completed Uptown ATX’s One Uptown, a 381,739-square-foot, 14-story, Class A office building, in January. The mixed-use campus will have 3.2 million square feet of office, retail and residential space upon buildout.

Closer to home, Brandywine recently signed a 119,000-square-foot lease at 250 Radnor St., a life science and office building in Radnor, Pa., a Philadelphia suburb. That 168,000-square-foot building is now fully leased.

Brandywine’s portfolio, which is concentrated in the Philadelphia and Austin markets, comprised 147 properties and 21.1 million square feet as of Sept. 30.

The post Brandywine Sells 2 in Austin for $108M appeared first on Commercial Property Executive.

The project is taking shape within Gateway, a 2,000-acre master-planned development including for-sale and rental units alongside light industrial, retail, entertainment, office, hotel and medical spaces.

Village at Gateway Phase 1 will comprise around 500,000 square feet of retail space, with completion expected in the summer of 2026. The second phase is set to include another 200,000 square feet of retail.

GFF serves as main architect and Ridgemont Commercial Construction is the general contractor. Edge Realty Partners Principals David Copeland and Ryan Griffin will oversee retail leasing and sales at the property.

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A 144,000-square-foot Target, 130,000-square-foot H-E-B and 135,000-sqaure-foot Home Depot will anchor Phase 1. This stage of development will also feature an additional 120,000 square feet of retail, service and restaurant space, nine outparcels and multi-family residential.

Located at North Gateway Boulevard and U.S. Highway 80, the site is north of Interstate 20 and some 25 miles from downtown Dallas. Texas Health Resources’ 50-acre medical campus will take shape immediately west of Village at Gateway.

Fortney has been recently named the nation’s 10th fastest growing suburban city, according to StreetLevel Investments’ Managing Principal Brian Murphy.

DFW retail market remains resilient

Even though the construction activity somewhat slowed, Dallas-Fort Worth’s retail market remains resilient. The metro recorded 4.2 million square feet of retail space under development in the third quarter, according to a recent Partners report. Meanwhile, approximately 823,146 square feet came online, concentrated in the high-growth northern suburbs.

The Metroplex’s vacancy rate clocked in at 4.7 percent, decreasing 10 basis points from the previous quarter. The metro’s leasing activity continued to show positive numbers, with 2.3 million square feet of commitments signed in the third quarter of this year. H-E-B’s lease at Valley at Gateway was on one the largest deals of the interval.

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A joint venture between Realterm and Titan Development will build a Class A, 440,300-square-foot industrial project in Laredo, Texas.

Once complete, the speculative cross-dock development will have 36-foot clear heights, 150 dock doors, 264 trailer stalls and a truck court measuring 185 feet in depth. The warehouse will accommodate up to two tenants and include two points of egress and ingress.

The project will take shape on approximately 26 acres close to the Port of Laredo—the nation’s number one port, with $320 billion in trade last year, according to the U.S. Census Bureau—which is also roughly 14 miles from the World Trade Bridge and about 9 miles from Laredo International Airport.

READ ALSO: Industrial Report: Why Things Are Looking Up for Ports, Supply Chains

Realterm recently partnered with Alliance Industrial Co. for the development of another Laredo industrial project. The venture broke ground in September on the 236,693-square-foot speculative facility, with completion expected by next summer.

And the company’s border-oriented activity doesn’t stop there. Earlier this month, Realterm joined forces with NIT Industrial to develop a 452,966-square-foot industrial park in El Paso, Texas.

Laredo’s industrial growth outpaces the national average

Metro Laredo’s industrial space is in high demand—growing thrice as fast as the U.S. average—according to a report by Matthews. Developers are betting on the market especially since the emergence of the current nearshoring trends.

Laredo’s industrial development pipeline encompassed some 2.8 million square feet as of September, the same source shows. Last year, industrial deliveries totaled 3.9 million square feet.

Logistics space leases made up about 3 million square feet during the first nine months of the year, Matthews’ report reveals. The strong leasing activity contributed to stabilizing the metro’s vacancy rate, which clocked in at 5.1 percent in September.

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Birtcher Anderson & Davis and Belay Investment Group have sold a 439,916-square-foot, eight-property light industrial portfolio in the Dallas-Fort Worth metro. The buyer was Basis Industrial, which financed the purchase with a $138 million loan from Beach Point Capital Management, according to CommercialEdge information.

Birthcher and Belay had acquired the properties in 2020 for $47.5 million. The seller at the time was the locally based Fort Capital.

Bob Anderson, Birtcher Anderson & Davis co-chairman, said in a statement that there is strong investor appetite for light industrial properties in North-Central Texas. The sellers tapped Newmark to take the assets to market.

READ ALSO: Industrial Demand Slips, But Avoids a Slump

The portfolio includes:

• Manana Business Park at 2526 Manana Drive in Dallas
• Garden Brook Industrial at 3109, 3113 and 3300 Garden Brook in Farmers Branch
• 4101 Lindberg in Addison
• Luke Business Park at 1100-1220 Luke St. in Irving
• Hickory Business Park at 1665 Hickory Drive in Haltom City
• 1115 and 1101 NE 23rd St. in Fort Worth
• Suffolk Industrial Park at 2901, 2905, 2921 and 2951 Suffolk Drive in Fort Worth.

The assets were 87.7 percent leased at the time of sale to more than 85 tenants.

Also this month, Birtcher and Belay sold the 78,000-square-foot, six building Pomona East Commerce Center in Pomona, Calif., to Arete Venture Partners. The industrial portfolio was 92 percent occupied at the time of closing.

Light industrial assets in demand

Small bay industrial continues to attract strong demand from private capital and 1031 exchange investors, Mark Shaffer, CBRE senior vice president, said at the time of the Pomona East Commerce Center sale, which his company facilitated.

In terms of returns, the light industrial subsector (assets of less than 200,000 square feet) demonstrates particular resilience, especially when compared with other property types, including larger industrial assets, according to new research study by BKM Capital Partners.

Supply hasn’t kept up with demand. The development of new light industrial assets, particularly small-bay properties, has been held back by significant barriers to entry, Brian Malliet, BKM CEO & CIO, told Commercial Property Executive.

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Additionally, 11 office developments came online in Dallas during the same time frame, totaling more than 1.6 million square feet of space. The market’s office vacancy rate, however, rose 390 basis points year-over-year, clocking in at 22.9 percent.

Office-to-residential conversions remain a focal point for investors and office owners, especially given the sector’s fluctuating metrics. According to CommercialEdge’s Conversion Feasibility Index, a tool designed to evaluate the practicality of repurposing buildings, Texas markets may not rank among leading U.S. metros, but there is significant potential for this transformation across the nation.

Dallas’ sales volume ranks high nationally

Dallas’ office investment volume year-to-date as of September reached roughly $1.1 billion. The metro ranked fourth nationally, following Manhattan ($2.7 billion), Washington, D.C. ($2 billion) and the Bay Area ($1.8 billion).

Assets in the Metroplex traded for $128 per square foot on average. Despite the figure being way below the $171 national average, sales metrics in the market remained consistent. Dallas’ average price per square foot in the first half of the year clocked in at $127 per square foot, according to prior data.

Peer markets such as Austin ($379 per square foot), San Diego ($196 per square foot) and Phoenix ($174 per square foot) fared better, while Houston ($104 per square foot) was at the opposite end.

In September, a joint venture between Enverra Real Estate Partners and Gulf Coast Western acquired the 230,000-square-foot Parkway Office Center North and South in Dallas. The two-building campus’ former lender, Principal Financial, sold its interest in the loan to the duo, foreclosing on the previous borrower.

Construction pipeline outpaces national trends

At the end of September, The Metroplex had about 4 million square feet of office space under construction, accounting for 1.4 percent of total stock, above the 1.0 percent national rate. When factoring in projects in the planning stages to that figure, the market’s share jumped to 6.2 percent.

The metro lagged behind peer markets San Diego (4.2 percent) and Austin (3.6 percent), while Atlanta (1.0 percent) and Houston (0.7 percent) were at the other end of the spectrum.

Earlier this year, the $4 billion life science Texas Research Quarter innovation district in Plano, Texas, received developmental approvals from the Plano City Council, as well as a financial plan for a tax increment financing reinvestment zone. NexPoint is the developer of the project, which will see the addition of more than 3 million square feet of space.

Completions in the Metroplex almost halve

A total of 11 office properties came online in Dallas year-to-date as of September, totaling more than 1.6 million square feet. This accounts for 0.5 percent of the market’s existing inventory, just under the 0.6 percent national figure. Year-over-year, office completions in the metro almost halved.

Among peer markets, Atlanta (1.2 million square feet) and Houston (1.4 million square feet) trailed Dallas, while Austin (2.0 million square feet) and San Diego (2.7 million square feet) outpaced the Metroplex.

In September, Fenway completed the renovation of The Gild, an office campus consisting of two 20-story towers and two two-story concourse buildings. The upgrades of the 900,000-square-foot property amounted to $50 million.

Vacancy rate well above the national average

Dallas’ vacancy rate in September clocked in at 22.9 percent, considerably above the 19.5 percent national average. This also marks a 390-basis-point rise year-over-year, with return-to-office policies failing so far.

Among peer markets, the Metroplex had one of the highest vacancy rates and was followed by San Diego (18.5 percent), and Atlanta (20.5 percent). Markets with significantly larger vacancy rates were Austin (27.8 percent) and the Bay Area (25.3 percent).

Earlier this year, Bank of America signed a 10-year lease renewal for its 553,799-square-foot space at Hallmark Center I in Addison, Texas. Office Properties Income Trust owns the two-building campus completed in 1977 and 1997, managed by The RMR Group

The Metroplex’s listing rate during the same month clocked in at $30.64, slightly below the $32.89 national average. Miami ($52.87) and Austin ($45.99) led the South region.

Dallas shared office space remains steady

Dallas-Fort Worth’s shared space inventory as of September totaled almost 5.3 million square feet across 279 locations. This accounted for 1.8 percent of the market’s total rentable office space, just below the 1.9 percent national rate.

The market was on par with Houston and Phoenix, but surpassed the Bay Area (1.3 percent). Among the largest U.S. markets, Miami took the lead with 3.8 percent of shared office space. Regus had the largest share of coworking space in the Metroplex, about 585,000 square feet, followed by Lucid Private Offices (442,627 square feet) and Cado (274,500 square feet).

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Provident Realty Advisors has acquired Lakeside Campus, a two-building office campus spanning 807,354 square feet in Richardson, Texas, a Dallas submarket. Trigild sold the asset in a Newmark-brokered deal.

The complex came online in 1991. Since 2015, more than $13 million have been invested in property enhancements, including an upgraded lobby, fitness center, full-service café and tenant lounge.

The Class A property comprises a 16-story high-rise and a four-story building. Additionally, the campus features about 3,250 parking spaces and an 18-acre site with a landscaped pond and jogging trail, as well as a conference room and 65,000 square feet of data center space.

READ ALSO: 4 Ways to Improve Office Values

Software company RealPage anchors the property that was 69 percent leased at the time of sale, with a weighted average lease term of 3.9 years. The roster also includes Ameriprise Financial, HH Architects and NexMetro Communities, according to CommercialEdge information.

Located at 2201 and 2221 Lakeside Blvd., the campus is adjacent to the Richardson Plaza shopping center. The DFW International Airport is some 24 miles away, while downtown Dallas is roughly 17 miles southwest.

Newmark Vice Chairmen Chris Murphy, Robert Hill and Gary Carr, along with Director Stephen Schwalb, represented the seller in the transaction.

Dallas office sales in the spotlight

Dallas-Fort Worth’s office investment volume year-to-date as of September reached almost $1.1 billion, ranking fourth nationally, according to a CommercialEdge office report. The metro was surpassed by the Bay Area ($1.8 billion), Washington, D.C. ($2.0 billion) and Manhattan ($2.7 billion). However, assets in the Metroplex traded for $128 per square foot on average, well below the $171 national figure.

In October, Pinnacle Bank Texas sold Burnett Plaza, Fort Worth’s tallest building. The 1.1 million-square-foot, 40-story tower came online in 1983 and was renovated in 2021.

More recently, Billingsley Co. sold International Business Park 8, 9 and 10, a three-asset, 304,099-square-foot office portfolio in Carrollton, Texas. The properties are part of a 300-acre mixed-use campus that comprises 13 office buildings, retail space and residential units.

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KDC has completed a $114 million facility in Freeport, Texas, for Volkswagen Group of America. The development includes several buildings totaling more than 200,000 square feet, as well as asphalt parking for more than 16,000 vehicles, trucks and rail cars.

Located on 120 acres at Port Freeport, some 60 miles south of Houston, the new hub will import and process as many as 140,000 vehicles each year, including Volkswagen, Audi, Bentley, Lamborghini and Porsche brands.

READ ALSO: Why Things Are Looking Up for Ports, Supply Chains

KDC partnered with PRP Real Estate on the project which broke ground in late 2022. Steward Development & Construction served as general contractor on the development, while Goree was the architect. The automaker inked an initial 20-year lease at the rail-served facility, with the assistance of JLL.

Facilitating the consolidation of two smaller Texas facilities, which were in Houston and Midlothian, Texas, the new Volkswagen hub will support about a third of the firm’s U.S. retail dealers, or about 300 dealers in the western and central parts of the country.

KDC president Eric Hage notes that the facility will allow the car maker to deliver vehicles more quickly and efficiently to those dealerships. Its location in Port Freeport also helps Volkswagen Group’s goal of improving the environmental footprint of its global logistics, since the port can handle—not all ports can—Volkswagen’s low-emission liquefied natural gas vessels.

Dallas-based KDC has developed more than 150 corporate build-to-suit office, data center and industrial projects totaling about 40 million square feet since its founding in the 1980s.

Earlier this month, KDC completed construction of a 422,000-square-foot distribution center for Oncor Electric Delivery Co. in Midlothian. Other current projects include the Bank of America Tower at Parkside in Uptown Dallas, the new Wells Fargo office campus in Irving, Texas, and a JPMorgan Chase operations center in Ruston, La.

Port Freeport sees $16.7B in capital investment in five years

Port Freeport, which is about 3 miles from the Gulf of Mexico where the Brazos River meets the ocean, is a major handler of crude oil and natural gas liquids exports, and ranks sixth nationally in the volume of chemicals, 15th in total foreign waterborne tonnage, and 26th in containers.

A 2022 Economic Impact Study by Texas A&M Transportation Institute reported that Freeport Harbor Channel has a total economic output of $157.3 billion, serving a host of companies, including Volkswagen Group in the auto sector, but also Ford Motor Co. and General Motors.

The Freeport Harbor Channel is a deep-water channel with a 46-foot depth, and plans for deepening, and is the shortest channel transit on the Texas coast. Since 2019, the broader area near the port has seen significant infrastructure and operational investments, according to the report, both from Port Freeport and local industry. These projects have brought in over $16.7 billion in capital investments.

Though Volkswagen’s expansion at Freeport isn’t directly related to the disruption of auto import logistics earlier this year of the collapse of the Francis Scott Key Bridge in Baltimore, smaller U.S. ports—at least those that can handle autos—are benefiting from the redirection of such imports, according to Automotive Logistics.

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Partners Capital has sold San Marcos Place, a 73,105-square-foot retail center in San Marcos, Texas, halfway between Austin, Texas, and San Antonio. The undisclosed buyer is based in Austin. SRS Real Estate Partners Senior Vice President Cathy Nabours and Vice President Kyle Shaffer represented the seller.

Back in June 2018, Partners Capital acquired the property through Partners Opportunity Fund II, a direct lending fund managed jointly by Benefit Street Partners and Providence Equity Partners. The sale of San Marcos Place marks the closing of the vehicle.   

San Marcos Place is a two-building property that came online in 1985 and was renovated in 2017. At the time of this most recent sale, the retail center was 82 percent leased. The tenant roster includes the Social Security Administration, USPS, Lendmark Financial Services, Republic Finance and Austin Weight Loss, among others.

The property is at 900 Bugg Lane, at the intersection between Highway 80 and Interstate 35. Downtown San Marcos is less than 2 miles west and San Marcos Regional Airport some 3 miles away. A Walmart Supercenter and the multitenant Sanmar Plaza are just across the street.

Last year, the company also launched Partners Opportunity Fund V, which targets retail, alongside industrial and office. As of August 2024, the company had already bought three assets through this value-add vehicle, debuting with a shopping center in Fort Worth.

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Alliance Industrial Co., in partnership with Barings, has broken ground on Ironhead Commerce Center, a four-building, 906,271-square-foot industrial park in Northlake, Texas. Stream Realty Partners will handle marketing and leasing efforts.

Estimated construction costs for the four facilities totaled $56 million in June, as revealed by Seeberger Architecture filings at the Texas Department of Licensing and Regulation. The company also provided design services.

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Ironhead Commerce Center’s facilities will measure between 156,517 and 320,625 square feet. Plans call for clear heights from 32 to 36 feet. Additionally, four points of ingress and egress will be available. The park will be constructed to accommodate tenants ranging from 40,000 to 320,000 square feet.

Spanning 57.3 acres, the development’s four buildings will be at 12001 and 11901 Harmonson Road, as well as 3701 and 3655 McPherson Drive. The site is less than 3 miles from Interstate 35W and Texas State Highway 114. The Dallas Fort Worth International Airport is about 22 miles southeast.

Stream Realty Partners Senior Vice Presidents Forrest Cook and Jeff Rein, together with Associate Connor Land, will spearhead the leasing efforts for Ironhead.

Dallas-Fort Worth’s industrial pipeline tapers off

Another Dallas-Fort Worth industrial development broke ground last month. Less than 10 miles from Ironhead, Hillwood started work on a build-to-suit, 800,000-square-foot distribution center for Dick’s Sporting Goods. The project is part of Hillwood’s 27,000-acre master-planned campus dubbed AllianceTexas.

The Metroplex’s industrial supply pipeline had 16 million square feet of product under construction in September, according to a report by Cushman & Wakefield. The figure represented a 71.4 percent drop year-over-year. The market’s industrial deliveries clocked in at 9.3 million square feet during the third quarter, of which 8.3 million were in speculative projects.

Overall vacancy grew 30 basis points quarter-over-quarter, to 9.3 percent in September, the same source shows. The rate also skyrocketed 250 basis points year-over-year to its highest point since 2014.

The post Alliance Industrial JV Breaks Ground on 900 KSF Texas Project appeared first on Commercial Property Executive.

Law firm Walters, Balido & Crain has signed a 38,194-square-foot, seven-year lease renewal and expansion at Meadow Park Tower, a 262,776-square-foot office building in Dallas.

JLL worked on behalf of the tenant, while owner Bradford MPT Partners was represented in-house by Bradford Commercial Real Estate Services.

The firm, which has been a tenant in the building for 11 years, renewed the lease about a year early. In addition, it picked up an extra 5,958 square feet and will occupy the last two floors of the 16-story property.

The company’s agreement also includes a tenant-improvement allowance to renovate both floors of its regional office. Bradford is completing lease renewals with three other tenants who will be moving to different spaces within the building to make room for WBC’s expansion needs.

READ ALSO: How AI Firms Are Reviving Office Space Demand

The owner acquired the asset at the beginning of 2022 from Novel Office, according to CommercialEdge. The firm used a $30.7 million loan from Simmons Bank for the purchase and, a few months later, took out a $35.7 million note originated by the same lender.

The Class A tower came online in 1986 and is now 96 percent leased. The building went through cosmetic renovations in 2011 and 2023. The latter involved a $10 million capex plan that resulted in the property earning the BREEAM accreditation for energy efficiency, boosting the workplace well-being.

Amenities include an updated fitness center, a cafeteria, EV charging stations, a dining area and lounge seating. The high-rise also has six passenger elevators, floorplates averaging 18,273 square feet and 755 parking spaces.

The building is at 10440 N. Central Expressway, adjacent to the Meadow Central Market shopping mall and 22 miles away from the Dallas-Fort Worth International Airport. Downtown Dallas is some 8 miles southwest.

Bradford Commercial First Vice President Jared Laake and Senior Vice President Richmond Collinsworth represented the landlord. JLL Sales Coordinator Taylor Messina and Executive Vice President Scott Hage worked on behalf of the tenant.

Dallas office vacancy rate climbs

Dallas’ office vacancy rate reached 22.9 percent at the end of September, registering a 390-basis-point increase year-over-year, according to a CommercialEdge office report. The figure is also well above the 19.5 percent national average, but below those registered in Austin (27.8 percent) and Houston (25.2 percent).

In August, Bank of America renewed its 553,799-square-foot space for another 10 years at Hallmark Center I in Addison, Texas. Office Properties Income Trust owns the two-building campus completed in 1977 and 1997, managed by The RMR Group.

More recently, another law firm committed to almost 50,000 square feet in Uptown Dallas. Gray Reed will occupy the space at 1845 Woodall Rodgers, an office building owned by Woodbine Development Corp. and First United Bank.

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JLL Capital Markets represented the seller and procured the buyer, locally based Interra Capital Group. The transaction highlights the area’s strong demand for Class A office assets, of which there is a limited supply in Houston.

“The trophy office segment continues to outperform the market, with 848,000 square feet of positive absorption at the end of the third quarter 2024,” Wade Bowlin, principal & managing director for Avison Young’s Houston office told Commercial Property Executive.

Tenants are increasingly drawn to these high-quality buildings, which offer superior amenities and modern features in prime locations, according to Bowlin.

“However, there is a limited supply in the Houston market, and within the next few years, just 543,000 sf of new office space is under construction and slated for delivery, causing strong demand for the limited options available.”

READ ALSO: How AI Firms Are Reviving Office Space Demand

Remington Square was completed in 2008 and 2015. The site comes with a restaurant with catering, a fitness center with locker rooms, a tenant lounge, and a conference facility on a 16.78-acre parcel that has room to develop a fourth building.

The property is situated along Beltway 8 at 10603, 10613 and 10713 W. Sam Houston Parkway, near 16.2 million square feet of retail space, as well as executive and employee housing options.

Managing Directors Kevin McConn and Marty Hogan and Senior Director Rick Goings led the JLL Capital Markets Investment Sales and Advisory team that represented the seller in the transaction.

Flight-to-quality trend drives investment

“While quality alone is no longer a guarantee of property value, retention and appreciation of performance due to shifting office sector dynamics, it remains the best hedge in an office market that is finding its new equilibrium inventory size given the quasi-permanent downward change in office space demand due to flexibility in work locations,” Ermengarde Jabir, Moody’s director of Economic Research, told CPE.

In the context of the flight-to-quality trend, the adage of ‘location, location, location’ rings truer than ever, Jabir observed.  

“Firstly, a quality office building in a metro where the general work culture is to go into the office more often than not is a prime property,” Jadir continued. “Then, beyond that, the location within a metro that provides easy access to commuters, whether via public transport or car, is also highly sought after. The obvious physical characteristics of a building are primary in determining quality, including age/newness, architecture, amenities, etc.”

Tenant quality also factors in as part of quality, with investors seeking office buildings of the highest physical quality along with stabilized properties with high occupancy rates and strong projected NOI growth, Jabir explained. Mixed-use properties and neighborhoods also play a key role in the flight to quality, as cohesive communities offering a live-work-play model tend to foster stronger demand resilience.

Carrie Szarzynski, senior managing director & head of management services at Oakbrook Terrace, Ill.-based Hiffman National, said that Houston and other Texas cities continue to lead the nation in office occupancy, and tenants are gravitating to buildings that check all the boxes for finishes, amenities and concierge-level management services.

“We’re increasingly finding that on-site conveniences such as food and beverage offerings, fitness centers and social lounges are must-haves for companies in search of buildings whose common areas can serve as an extension of their own private offices,” Szarzynski said.

“This flight to quality has made it essential for landlords to offer a high-touch, high-tech workplace experience that’s differentiated from home and other remote work environments.”

Earlier this month, a Class A office building in Houston, Twentyfour25 Galleria, sold in a bankruptcy deal for $27 million.

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Law firm Gray Reed has signed a nearly 50,000-square-foot, long-term lease at 1845 Woodall Rodgers in Dallas. A joint venture between Woodbine Development Corp. and First United Bank owns the 147,000-square-foot office building.

Woodbine Commercial arranged the deal on behalf of the ownership, while Newmark represented the tenant.

Gray Reed will occupy more than two floors at the property and will begin construction on its new office next year. Upon build-out completion, about 150 employees will relocate to the Uptown building from Santander Tower, a 1.4 million-square-foot high-rise located at 1601 Elm St. in the city’s CBD.

The firm will join tenants such as CornerStone Staffing, Inland Investment Group and Omniplan, according to CommercialEdge. The two owners also occupy a combined 40,000 square feet within the high-rise. After Gray Reed’s agreement, the building reached a 95 percent level of occupancy.

READ ALSO: Innovative Solutions for Return-to-Office Challenges

The duo purchased the 17-story asset in March 2019 using funds from a $44.6 million acquisition and development loan originated by First United Bank, the same source shows. Karns Commercial Real Estate sold the property.

Completed in 1984, the Class A building was renovated in 2014 and underwent cosmetic upgrades in 2021. The high-rise features four passenger elevators, floorplates averaging more than 18,000 square feet, some 440 parking spaces and a coffee bar.

Located at 1845 Woodall Rodgers Freeway, the building is near downtown Dallas and close to several retail and dining options. The DFW International Airport is roughly 16 miles northwest.

Woodbine Commercial Managing Partner Alexis Martinez oversaw leasing efforts on behalf of the ownership. Newmark Executive Managing Director John Beach and Associate John Magness represented Gray Reed in the deal.

Office vacancy rate up in Dallas

Dallas’ office vacancy rate at the end of September clocked in at 22.9 percent, 390 basis points higher year-over-year and well above the 19.5 percent national average, according to the latest CommercialEdge office report. However, the metro’s listing rate during the same month reached $30.64, marking a 12.3 percent growth over a 12-month period.

In August, Bank of America renewed its 553,799-square-foot leasing agreement for another 10 years at Hallmark Center I in Addison, Texas. The RMR Group is the owner of the two-building campus.

A month earlier, Santander signed a 211,087-square-foot lease renewal at Santander Tower. Woods Capital subsidiary Pacific Elm Properties owns the mixed-use property that also features residential units and a 60-key hotel.

The post Law Firm Signs 50 KSF Lease in Dallas appeared first on Commercial Property Executive.

Realterm and NIT Industrial have formed a joint venture to develop a two-building, 452,966-square-foot industrial campus on 31.2 acres in El Paso, Texas, near the U.S.-Mexico border.

Building One will have 125,843 square feet and feature a dock-high, rear-load configuration with a clear height of 32 feet. The second facility will have 327,123 square feet designed in a dock-high, cross-dock configuration and a 36-foot clear height. The property will also feature a total of 134 docking doors and 165 trailer stalls.

The location will provide tenants with a prime position for international trade with Mexico. The property is minutes from Interstate 10, Highway 375, the Ysleta-Zaragoza Bridge, Bridge of the Americas, El Paso International Airport and Paso De Norte Port of Entry. The El Paso-Juarez crossing at Ysleta has the second largest trade volume along the border.

READ ALSO: The Next Industrial Hotspot? Head South and Then Some.

Travis Westmoreland, vice president of development at Realterm, said in prepared remarks nearshoring has become more prominent in U.S. trade since the pandemic, creating sustained demand in the El Paso logistics market. The firm has a notable Texas portfolio with properties in Dallas, Houston, Austin, Del Valle, Hutchins and Laredo.

For NIT, a Houston-based commercial real estate investment, development and operating company specializing in the industrial and distribution sectors, this will be its third ground-up project in the El Paso market. The firm also developed a speculative three-building, 555,000-square-foot campus called Loop 375 Industrial and sold it to MDH Partners prior to completion.

Realterm recent activity

Earlier this year, Realterm and Patrinely broke ground on a four-building, 439,000-square-foot speculative industrial project in Austin, Texas, that is slated for delivery by the first quarter of 2025. The campus is taking shape on a 34.5-acre site in the southeast Austin airport submarket.

The firm is also very active in the industrial outdoor storage sector. In February, Realterm acquired three IOS truck terminals near major Northeast interstates as part of Yellow Corp.’s Chapter 11 bankruptcy proceedings. The properties that Realterm took over were located in North Reading, Mass., outside Boston, Lexington, Pa., near Philadelphia and Cranston, R.I., in the Providence, R.I., market.

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Lucid Private Offices has opened a 35,234-square-foot coworking space in Dallas. The company’s new location is spread across two floors at 8080 NCX, a 287,694-square-foot Class A office building owned by Intercontinental Real Estate Corp.

Cresa negotiated on behalf of Lucid Private Offices while Forge Commercial represented the landlord.

Dubbed Lucid Private Offices – NorthPark, the company’s new space is on the 15th and 17th floors of the mid-rise building. The location features 120 private and team offices, floor-to-ceiling glass windows, five conference rooms and a library.

Other tenants at 8080 NCX include Regency Centers Corp., Sequel Holdings and Powell Coleman & Arnold LLP, among others, according to CommercialEdge information.

READ ALSO: Flex Office Is Becoming Synonymous With Office

Intercontinental Real Estate Corp. picked up 8080 NCX in 2016, in a joint venture with Foundry Commercial. Gemini Rosemont sold the asset for $58.4 million. The partnership also took out a $23.6 million acquisition loan held by Principal Financial Group, with a maturity date set for 2026, the same source shows.

The 17-story building came online in 1984 and underwent cosmetic renovations in 1995. The property features ten passenger elevators, 16,900-square-foot floorplates and 1,007 parking spots. Amenities at 8080 NCX include an on-site cafe, fitness center, lounge, 24-hour security and key-card access.

Located at 8080 N. Central Expressway, the property has access to Dallas Love Field Airport. Downtown Dallas is 6 miles away, while Dallas Forth Worth International Airport is 22 miles west.

Principal John Pelletier and Vice President Austin Studebaker with Cresa represented Lucid Private Offices in the leasing negotiations. Forge Commercial’s Co-Founder & Partner Grant Sumner and Partner Taylor Lynch worked on behalf of the ownership.

The runner-up for coworking spaces across the U.S.

The leasing agreement marks the company’s ninth location in Dallas. The deal follows the flex office provider’s recent 3,000-square-foot expansion of its McKinney location at 7300 State Highway 121, where its total footprint reached 30,000 square feet, CommercialEdge also shows.

The total number of coworking spaces in the U.S. rose to 7,538 locations by the end of the third quarter in 2024, a recent CoworkingCafe report shows. This represents a 7.0 percent quarter-over-quarter growth, a positive evolution in line with the coworking industry trends. Of the top 25 leading markets in the country, Dallas-Fort Worth held the runner-up position with 279 flex workspaces, outperforming the long-time national leader Manhattan.

The post Lucid Opens Dallas Flex Office No. 9 appeared first on Commercial Property Executive.

Billingsley Co. has sold International Business Park 8, 9 and 10, a three-asset, 304,099-square-foot office portfolio in Carrollton, Texas, a Dallas submarket. Newmark represented the seller.

The buildings were 79 percent leased to multiple credit-quality tenants at the time of closing, with a five-year average occupancy rate of 85 percent.

The properties are part of International Business Park, Billingsley’s 300-acre mixed-use campus that comprises 13 office buildings totaling more than 1.7 million square feet, 174,000 square feet of retail space and 940 residential units.

READ ALSO: Office Vacancy Rates On The Rise

All three two-story buildings came online in 2001. The 103,916-square-foot property at 4100 Midway Road has floorplates averaging 52,000 square feet and an outdoor grilling and seating area. The other two assets, the 100,378-square-foot 4100 International Parkway and the 99,804-square-foot 4120 International Parkway, feature floorplans averaging 51,000 square feet.

The building trio is along the Dallas North Tollway and some 17 miles from the DFW International Airport. Downtown Dallas is less than 21 miles southeast.

Newmark Vice Chairmen Chris Murphy, Robert Hill and Gary Carr represented the seller.

Office sales activity in DFW remains strong

The Dallas-Fort Worth market ranked fourth nationally in terms of office investment volume, reaching roughly $1.1 billion year-to-date as of September, according to the latest CommercialEdge office report. However, assets in the metro traded for $128 per square foot on average, well below the $171 national figure.

In September, Shorenstein acquired International Plaza 15, a 388,000-square-foot office tower in Dallas. Taconic Capital sold the 15-story asset in a JLL-brokered deal.

More recently, the tallest building in Fort Worth, Texas, changed hands. Pinnacle Bank Texas sold the 1.1 million-square-foot, 40-story Burnett Plaza several months after having purchased it at a foreclosure auction for $12.3 million.

The post Dallas Office Trio Changes Hands appeared first on Commercial Property Executive.

Twentyfour25 Galleria, a 285,000-square-foot Class A office building in Houston, has sold for $27 million.

Hilco Real Estate, appointed by the U.S. Bankruptcy Court for the Southern District of Texas, brokered the Chapter 11 Bankruptcy deal of behalf of the property’s trustee, during a one-month marketing period, with the initial minimum bid price starting at $7.3 million.

The bankruptcy sale was scheduled earlier this year, when The National Bank of Kuwait attempted to foreclose on the property, owned since 2013 by Jetall Capital, The Real Deal reported.

The asset changed hands later, in 2018, with the new ownership being associated with the seller, according to the same source. At the time of that sale, The National Bank of Kuwait issued a $51.7 million loan, CommercialEdge shows.

READ ALSO: 5 Strategies for Distress Buyers

Completed in 1979 and upgraded in 2016 and 2020, the 11-story property features six passenger elevators, 24,700-square-foot floorplates and 938 parking spots.

Amenities at Twentyfour25 Galleria include an atrium, a conference room, a fitness center, shower facilities, food services, on-site restaurants and an outdoor courtyard with seating space.

Located at 2425 W. Loop S., the nearly 2.5-acre property is across Interstate 610, within Houston’s the Galleria area in the Uptown District. Downtown Houston is 8 miles away and George Bush Intercontinental Airport is some 26 miles northeast.

Foreclosure deals on the rise

Defaults and office loan delinquencies are on the rise, with more than $260 billion in office loans maturing this year or set to mature by the end of 2026, according to a CommercialEdge report. Maturing loans will affect 30 percent of all office notes and more than 12,000 properties, located mostly in core submarkets.

In a similar recent deal in Houston, Interra Capital Group bought The Esperson Buildings. The two historic office properties changed hands for $12 million, following the foreclosure on a Metropolitan Life Insurance Co. loan.

The post Houston Office Asset Trades in $27M Bankruptcy Sale appeared first on Commercial Property Executive.

Equity Commonwealth has sold two office assets totaling 616,000 square feet for $64.5 million in Austin, Texas.

The REIT agreed to the disposition of Bridgepoint Square, a five-building, 440,000-square-foot campus, and the Capitol Tower, a 176,000-square-foot office property. Marbella Interests acquired Bridgepoint Square, according to Travis County public records. JLL was tapped to arrange this sale on behalf of EQC.

The company was also looking to sell 1250 H St. NW, a 196,490-square-foot office building in Washington, D.C., according to third-quarter financial reports. Equity Commonwealth recognized a $50.2 million combined loss on asset impairment related to the office trio.

Capitol Tower came online in 1984 and EQT purchased the property for $49 million in 2012. Pomeroy Holdings sold the asset, CommercialEdge data reveals. Rising 20 stories, the building encompasses 25,805-square-foot floorplates. The tower is LEED Silver and Energy Star certified.

READ ALSO: Austin Office Market Commands High Prices

An EQC financial report shows that Capital Tower was 69.4 percent leased as of Sept. 30. The tenant directory included Prosperity Bank, as well as VMware Technology and BCW, among others.

Carrying the address 206 E. Ninth St., the high-rise is in Austin’s central business district, within walking distance of the Texas Capitol. Several parks, quick-service restaurants and museums are proximate to the building.

The sale of Bridgepoint Square

Bridgepoint Square’s five buildings debuted between the late 1980’s and mid-to-late 1990’s. EQC acquired the campus in 1997 for $78 million in a portfolio deal, according to CommercialEdge data. Financial Industries Corp. sold the property.

Since 2015, EQC has invested more than $13.5 million in capital improvements at the office campus. Prior to the trade, Building 5 was undergoing a renovation process which included upgrades to the lobby and common areas.

The buildings rise either four or five stories high, with floorplates averaging from 16,000 to 22,000 square feet. Amenities comprise a cafe, a gym, a volleyball court and three parking structures. Bridgepoint Square was 52.5 percent leased as of Sept. 30, EQT data shows. The tenant roster includes New York Life Insurance Co. and Burns & McDonnell, among others.

Located on 27.7 acres at 6200 and 6300 Bridge Point Parkway, the campus is about 10 miles northwest of downtown Austin. The Pennybacker Bridge, Lake Austin and Texas State Highway 360 are less than 1 mile away.  

Austin’s pricy office assets

Despite an office vacancy rate of 27.8 percent as of September, Greater Austin office assets traded on average for $379 per square foot this year, sporting one of the nation’s highest price tags.

The total office investment volume in metro Austin reached $787 million during the first 10 months of the year, according to CommercialEdge. Volume-wise, the Metroplex fared better with investors, as $1.1 billion in office assets traded during the period.

Earlier this year, Endeavor Real Estate Group used its discretionary fund to acquire Plaza on the Lake, a 120,798-square-foot office asset in Austin. IPERS and Clarion Partners sold the property following a $5 million capital improvement plan.

The post EQC Sells 2 Office Assets in Austin for $65M appeared first on Commercial Property Executive.

Transwestern Development Co. has completed Mid-Cities Logistics, a five-building, 908,300-square-foot Class A logistics hub in southeast Fort Worth, Texas. Adolfson & Peterson Construction served as general contractor.

Designed by Alliance Architects, all facilities are suitable for storage, distribution and light manufacturing uses.

According to information provided by CommercialEdge, the five buildings are:

Building A: 3152 Sandy Lane, 116,480 square feet

Building B: 7501 Buttercup Lane, 76,190 square feet 

Building C: 7553 Buttercup Lane, 203,980 square feet 

Building D: 3201 Boswell Drive, 388,905 square feet

Building E: 3253 Boswell Drive, 121,740 square feet

READ ALSO: Top 5 Markets for Industrial Deliveries

The developer had broken ground on the 65-acre project in February 2023. Fifth Third Bank provided about $64.5 million in construction financing, also according to CommercialEdge.

The property is just north of Highway 180, providing direct access to Interstate 820. The location is some 10 miles from downtown Fort Worth and 25 miles from downtown Dallas.

AP is also engaged with other projects in the Dallas–Fort Worth metro, including the renovation of more than 310,000 square feet of industrial space at the Sunrise Commerce Center in Round Rock, Texas, and the construction of a 325,000-square-foot data center in Fort Worth.

Starting to decelerate

Barely a month ago, Hillwood announced plans to develop a 1.1 million-square-foot, speculative Class A industrial building in Fort Worth, at the 27,000-acre AllianceTexas campus.

Industrial space demand in the Metroplex saw a combined 18.8 million square feet of net absorption at the end of September, according to a third-quarter report from Cushman & Wakefield. The region’s overall vacancy of 9.3 percent, already the highest since 2014, is forecast to rise even more.

Although deliveries have been substantial, with the vast majority of space being speculative, they’re also tapering off, Cushman & Wakefield reports.

The post Transwestern Wraps Up Fort Worth Industrial Campus appeared first on Commercial Property Executive.

Oncor is Texas’ largest electricity transmission and distribution company, serving more than 13 million customers. Oncor officials said the new distribution center would help support the company’s unprecedented growth.

KDC broke ground on the project in December 2023. F.A. Peinado served as general contractor and Alliance Architects Inc. was the project’s architect.

The LEED-certified, cross-dock building has 36-foot clear heights and features a significant amount of warehouse storage space, interior offices, training rooms and a break room. The distribution center would handle about 934 vehicles per day, according to the Midlothian Mirror newspaper.

READ ALSO: Top 5 Markets for Industrial Deliveries

KDC worked with the city of Midlothian to rezone the site near the northwest corner of Forbes and VV Jones roads from agricultural to planned development. The Planning and Zoning Commission approved the rezoning in May 2023 and the City Council signed off on the development the following month, the local newspaper reported.

The Oncor building is on U.S. Highway 67, providing easy access to interstates 45 and 35. The 60.7-acre property is about 31 miles southwest of downtown Dallas. The Dallas/Fort Worth International Airport is nearly 37 miles northeast.

The facility is part of the 1,700-acre Railport Business Park, which was developed as part of a public-private partnership through the Midlothian Development Authority. Other companies operating within the campus include Target, Google and QuikTrip.

More KDC projects

KDC has developed more than 150 corporate build-to-suit office, data center and industrial projects totaling approximately 40 million square feet, including many in the Dallas-Fort Worth metro.

In April, a joint venture between KDC and Pacific Elm Properties secured a $290 million construction loan for Parkside Uptown, a 500,000-square-foot office development in Dallas. Bank of America will anchor the tower that is slated for completion in 2027.

A month earlier, KDC topped out Wells Fargo’s $455 million Project Falcon, an office campus in Irving, Texas, that will have 850,000 square feet across two buildings and be Wells Fargo’s first net-positive energy office development. Delivery is expected by late 2025.

The post KDC Completes Distribution Center Near Dallas appeared first on Commercial Property Executive.

DNA acquired the shopping center in 2014, for $15 million, according to CommercialEdge data. Citibank originated a $10.5 million CMBS loan, which had a 2024 maturity date.

La Michoacana is the anchor tenant at Mason Village Shopping Center. The roster also includes a mix of local and national retailers, such as Harbor Freight, Freebirds, Jiffy Lube, Weight Watchers, Rice Bowl and Jason’s Deli.

Completed in 1978, Mason Village Shopping Center encompasses four buildings spread across some 10 acres.

READ ALSO: Inside the Retail Stores of the Future

Senior Managing Director Ryan West, Senior Director John Indelli and Analyst Clay Anderson led JLL’s Investment Sales and Advisory team that worked on behalf of the seller.

Mason Village Shopping Center is at 21923 Katy Freeway, at the intersection of Mason Road and Interstate 10, within the West Houston submarket. The area’s daily traffic count reaches approximately 45,000 vehicles, according to JLL.

Houston’s retail market steady through third quarter

Houston’s retail market has been bolstered by recent job growth in the region. In the third quarter this year, 979,263 square feet of retail space came online, marking a 35.6 percent increase compared to the previous quarter, according to a recent Cushman & Wakefield report.

The metro’s vacancy rate was unchanged for ten consecutive quarters, at 5.3 percent, below historical averages, making the search for suitable spaces challenging for tenants, the same source shows. Year-to-date through September, over 2.7 million square feet of retail space has been delivered, primarily in three submarkets: Far Northwest (340,778 square feet), West/Northwest (324,093 square feet), and the Katy area (107,262 square feet).

The post Longpoint Buys Houston Shopping Center appeared first on Commercial Property Executive.

Alliance Industrial Co. has sold the 1.4 million-square-foot 35 Kyle Logistics Park in Kyle, Texas, to MDH Partners. The property is 100 percent leased to electric vehicle maker Tesla, which uses it for storage and light assembly in support of its gigafactory in Austin.

Completed in 2023 as a spec development but quickly leased by Tesla, the property consists of five buildings ranging from 140,300 to about 474,400 square feet. The facilities feature 36- to 40-foot clear heights, ESFR sprinkler systems and parking.

JLL Capital Markets represented the seller in the deal. The team included Industrial Group Co-Lead & Senior Managing Director Trent Agnew, along with Senior Directors Witt Westbrook, Kyle Mueller, Charlie Strauss and Tom Weber. Considering the location and the ironclad quality of its tenant, the property attracted a lot of investor interest, according to Agnew.

READ ALSO: Will CRE Market Conditions Improve?

“Interest level was strong from a mix of institutional investors due to the construction quality and tenancy primarily,” Agnew, Industrial Group co-lead and senior managing director told Commercial Property Executive.

“Austin continues to be a preferred market due to the long-term population growth projected, as well as the anticipated multiplier effect relative to tenant demand as a result of the Tesla gigafactory expansion—Samsung, Applied Materials and others,” Agnew said.

The campus takes its name from Interstate 35, which connects Austin with San Antonio, and has been a focus of commercial and residential boom in recent years. Under an agreement with Hays County, the developer, Alliance, received property tax reductions totaling more than $3 million, according to The Real Deal.

The town of Kyle has nearly doubled in size over the past decade, according to Census Bureau data. Though part of metro Austin, it is for now considered a relatively more affordable suburb of that city.

Alliance Industrial Co. has invested in 20 projects since its inception more than three years ago, totaling nearly 6.6 million square feet, and controls over 5 million square feet for future investment. The company is headquartered in Houston.

Atlanta-based MDH Partners manages funds targeting U.S. industrial real estate on behalf of institutional investors. The company has led or participated in more than $6 billion (90 million square feet) of acquisitions, developments and asset management as an advisor and investor.

Tesla continues Texas expansion

Tesla’s headquarters are at the company’s gigafactory in Austin, where it moved in 2021 from its former location in Alameda County, Calif., with the company maintaining—and even increasing—its operations in California. The Austin site employs 20,000 workers, making it the second-largest employer in Travis County, where the company builds Model Y SUVs and the Cybertruck at a facility that spans more than 10 million square feet.

Besides producing vehicles at the gigafactory, Tesla makes battery packs and cells for its batteries, and oversees plastic injection molding and stamping press lines, alongside other activities associated with its EV lines with an overarching goal of being more vertically integrated.

The gigafactory is hardly the auto tech giant’s only facility in the Austin area, where it occupies at least 4.5 million square feet—including the leases at 35 Kyle Logistics Park and other facilities—a number that is growing. Near Corpus Christi, Texas, Tesla started work on a lithium refining plant, and it occupies 440,000 square feet of San Antonio warehouse space.

The post MDH Acquires Tesla-Leased Logistics Park Near Austin appeared first on Commercial Property Executive.

Known as Core45, the project was delivered this summer, adding to the growth of the high-demand market. Benefit Street Partners provided the refinancing, which took out the property’s construction loan at more favorable terms.

The Class A property comprises two industrial, manufacturing and distribution buildings and is located along the heavily traversed I-45 corridor within the coveted South Dallas submarket.

Located at 1401 and 1501 E. Pleasant Run Road, the facilities measure 616,449 and more than 1 million square feet, respectively. The buildings feature optimal truck courts, extensive auto and trailer parking (900 auto stalls), 40-foot clear heights, approximately 4,000 square feet of speculative office space, ESFR sprinklers and cross-dock loading. They are designed to accommodate a variety of users, from multi-tenant arrangements to full-building occupants.

The property is 18 percent preleased to Owens Corning, an Ohio-based roofing, insulation and composite materials provider.

READ ALSO: E-Commerce Growth Revives Industrial Market

Rob Rubano, Brian Share, Michael Zelin, Max Schafer, Billy Coyle and Nikola Kretschmann led the Cushman & Wakefield Equity, Debt, and Structured Finance team. Additionally, the firm’s Industrial Advisory Group, led by Jim Carpenter, Jud Clements, Robby Rieke and Trevor Berry, provided local market advisory.

Population growth, job market boosts Dallas

Doug Ressler, business intelligence manager for CommercialEdge at Yardi, told Commercial Property Executive that Dallas-Fort Worth benefits from a robust economy, a growing job market and significant population growth.

“There is a strong demand for industrial space driven by e-commerce, global trade and the need for backup inventory,” he said.

The market has seen 55 consecutive quarters of positive net absorption, indicating consistent demand. Construction is ongoing at a high level, with millions of square feet in the pipeline. However, Ressler said vacancy rates are challenging despite high demand, which can impact rental rates and property values.

“There has been a slowdown in the development of large industrial spaces, which could limit options for larger tenants,” Ressler added. “Investors are becoming more cautious, which could affect financing and investment in new projects.”

According to Greg Langston, principal & managing director for Avison Young’s Dallas office, DFW’s industrial market has been one of the strongest ever because of its position as a national logistics hub.

“Our region’s central U.S. location and multimodal accessibility for road, rail and air are key to this reputation, as is our affordability compared to other distribution markets where average rents can easily exceed $12 to $16 per square foot,” Langston said.

As market vacancy is now elevated, Langston expects a slowdown in development activity through 2025.

DFW’s positive absorption trend continues

Josh Wheeler, senior vice president of development & acquisitions at Stonemont Financial Group, told CPE the DFW metroplex remains a leading hub for industrial growth, even as the market stabilizes following pandemic-driven expansion.

“Despite slowed construction and rising vacancy rates, DFW’s positive absorption trend continues, supported largely by population growth and increased manufacturing in northern Mexico and Texas,” Wheeler said. “As the market cools, we’re seeing a return to pre-COVID norms, positioning DFW to maintain its role as an industrial powerhouse.”

According to Justin Laswell, partner, CPA, for Moss Adams in Dallas, there is a robust demand in the Dallas industrial sector, driven by the region’s strong logistics network and consistent population growth.

“This market resilience is supported by high occupancy rates and steady rental increases as businesses prioritize proximity to major transportation hubs and consumers,” Laswell said.

He explained that despite economic uncertainties, Dallas’s industrial sector remains a top performer nationally, with developers racing to keep up with tenant demand across warehousing, manufacturing, and distribution spaces.

Foundry makes office-to-industrial conversions

For Foundry, DFW has been the breeding ground for projects, such as Horizon Landing, its first office-to-industrial conversion.

Jim Traynor, managing director of development & investments for Foundry Commercial in Dallas, said when Foundry looked at the DFW market from a big-picture perspective, “it was clear that demand for hyper-infill industrial projects remained incredibly strong.”

He observed however that the challenge is that very little—if any—industrial land is available in these prime pockets. At the same time, the rapid rise in interest rates hit suburban office buildings particularly hard, with liquidity drying up and property values taking a significant hit.

“This presented a unique opportunity, so we began conversations with office property owners about converting their spaces into industrial developments to meet market demand,” he said.

According to Traynor, not every city is equally suited for office-to-industrial conversions, as industrial developments have their own challenges and complexities. Within the Dallas – Fort Worth metroplex however, municipalities seem to be generally open to these types of deals and willing to collaborate.

Many cities with vacant office buildings embrace industrial conversions to attract jobs and boost tax revenues, Traynor explained. “While industrial use may not have been their first choice, they see office demand isn’t returning and are supportive. So far, we’ve only targeted areas where industrial development is already welcomed,” he added.

Certain Dallas submarkets have an oversupply of office space, making it crucial and exciting to repurpose these properties, according to Traynor. And since both the city and its residents have a real need for this space, he anticipates more projects like this. “It’s just a matter of identifying vacant office stock in the right areas where these conversions can succeed,” Traynor said.

Foundry Commercial announced last week that it is developing its seventh office-to-industrial conversion project and its second in the Dallas market.

The company will replace a 250,000-square-foot, 1980s-era office building in Plano, Texas, with two industrial assets totaling more than 300,000 square feet. Demolition work will begin this month, and the developer expects to complete both new buildings by the first quarter of 2026.

The post Grandview Partners, TRG Land $100M for Dallas Industrial Park   appeared first on Commercial Property Executive.

Acadia Realty Trust and Ignite-Rebees have started construction of a $95.5 million mixed-use project on North Henderson Avenue in Dallas. Balfour Beatty serves as general contractor for the 161,000-square-foot development that’s slated for completion by the fall of 2026.

Designed by GFF, a Dallas-based architecture firm, the project is taking shape on a nearly 4.8-acre site on the eastern side of North Henderson Avenue that has been vacant for decades. The area will be beautified with new street paving, decorative crosswalks, landscaping and buried utility lines.

Once complete, the campus will comprise 10 buildings and public spaces and span a quarter-mile stretch of North Henderson Avenue between Glencoe Street and McMillan Avenue. The area will be transformed into a walkable destination featuring retail brands, chef-driven restaurants and Class A office space.

Plans call for 75,000 square feet of retail space, 74,000 square feet of office space, 12,000 square feet of restaurant space and 500 underground parking spaces. Open Realty Advisors will handle retail leasing. Newmark will lease the office space, which has been dubbed Henderson East.

Long-term project

D Magazine reported the project has been in the works since at least 2018, when rezoning was approved. New York-based Acadia Realty Trust acquired 15 retail assets along with future development and redevelopment sites on Henderson Avenue for $85.4 million in April 2022, according to the REIT’s second-quarter 2022 earnings report.

The Henderson Avenue Portfolio included well-known retailers such as Warby Parker, Tecovas and Bonobos, a Sprouts Farmers Market and some of the city’s most popular restaurants. The earnings report stated, “The demonstrated success of the retailers and restauranteurs on Henderson Avenue serves as a promising proof of concept for what is to come.”

Located in East Dallas, the existing portfolio and planned development is in proximity to some of the city’s most affluent communities including Highland Park, University Park, Uptown and Lakewood.

Acadia stated it planned to add retail and office space to further connect and activate the already thriving Henderson district. Acadia partnered with Dallas-based Ignite-Rebees, a joint venture between well-known Dallas restaurateur Tristan Simon and Mark Masinter, founder of Open Realty Advisors and chairman of global retail for Newmark, according to D Magazine. Simon, Open Realty and CIM Group, which later sold the portfolio to Acadia, had purchased properties along Henderson in 2012.

Mixed-use focus

For Dallas-based Balfour Beatty, the Henderson project gives the national construction firm another chance to add to its hometown portfolio. It will be the company’s latest mixed-use project in Dallas, where it’s currently working with ANDRES Construction Services on the Knox Street mixed-use development for joint venture partners MSD Partners, Trammell Crow Co., The Retail Connection and Highland Park Village Associates.

Balfour Beatty also completed Epic II, a 23-story, Class A office building in the Deep Ellum Epic mixed-use development. The tower has 480,000 square feet of office space on 16 levels atop a 70,000-square-foot amenities level and 665,000-square-foot parking garage.

The post Acadia Realty JV Breaks Ground on Dallas Mixed-Use Project appeared first on Commercial Property Executive.

The 2323 Cedar Springs Road complex is located at the corner of Maple Avenue and Cedar Springs and includes two restaurant buildings totaling approximately 16,000 square feet and a half-acre park. The 626,215-square-foot office tower and restaurants are 60 percent leased. New tenants include the Wish You Were Here Group’s restaurants Élephante and Little Ruby’s Café, as well as Savills, which is leasing 10,000 square feet of space on the 14th floor in the office tower. The restaurants are slated to open in the fall of 2025. Élephante will occupy a two-story building facing Maple Avenue, while Little Ruby’s Café will located in a one-story building facing the 23Springs park.

In March, Granite Properties announced it had signed global law firm Sidley Austin LLP to a 118,484-square-foot lease for four and a half floors in the high-rise. Other office tenants include Deloitte, which signed a long-term lease in January for four floors of space and Bank OZK, which is taking four floors in the tower. Bank OZK also provided $265 million in construction financing for the development.

READ ALSO: What’s Your Wellness Action Plan?

“23Springs’ leasing velocity remains strong and reflects the continued demand for premier office space that is exceptionally located and walkable to shops and restaurants. We’re also seeing deal velocity and activity picking up across Uptown Dallas,” Paul Bennett, senior managing director, Granite Properties, told Commercial Property Executive.

DPR Construction is the general contractor and GFF is the development’s designer. DPR Construction broke ground at the 2.5-acre site in June 2022.

Building features, amenities

Bennett said tenants are attracted to “23Springs’ unique blend of amenities and community-focused design in the heart of Uptown Dallas.”

He said the project’s wide range of amenities and features “underscore its commitment to work-life balance, providing a change of scenery and space to unwind at the office.”

“The half-acre park, restaurants and patios will connect our customers to the neighborhood and create a new destination that is appealing to our customers and people throughout the city,” Bennett told CPE.

The glass office tower has been designed for LEED Silver and Fitwell certifications. In a post-pandemic office environment, it will provide tenants and visitors a touchless path from the garage to the office. Other design features include 14-foot floor-to-ceiling windows, column-free corner offices for views of the Uptown and Downtown Dallas skylines, clean air technology, destination dispatch elevators and ample green space to meet or work outdoors. Sustainability features include a rainwater harvesting system and low flow water fixtures, reducing indoor water consumption by 50 percent and energy consumption by 14 percent.

Building amenities include a two-story hospitality-driven lobby with a coffee and wine bar; indoor lounge with golf simulator; large conference center and boardroom; fitness center; outdoor lounge with full AV-enabled conference facilities; private motor court; EV charging stations; bike storage and valet parking. The building also has a total of 1,520 parking spaces in a six-story underground garage.

The property is walkable to popular Uptown restaurants, shops and the Katy Trail with easy access to the Dallas North Tollway and North Central Expressway.

More Granite projects

Granite Properties, a Plano, Texas, privately held commercial real estate investment, development and management company, owns 11 million square feet of high-quality office space in Dallas, Houston, Atlanta, Denver, Boston, Southern California and Nashville, Tenn. Current development projects in Dallas and Boston total more than 1.6 million square feet of space.

Earlier this month, Granite Properties and joint venture partners CBRE Investment Management and Leggat McCall Properties completed the conversion of a former courthouse and jail in Cambridge, Mass., to create 40 Thorndike, a 475,000-square-foot mixed-use building with 422,000 square feet of office space, apartments and ground-level retail.

Last October, Granite Properties and Highwoods Properties opened Granite Park 6, a 19-story, 422,109-square-foot Class AA office tower at 5525 Granite Parkway in Plano. Currently the tallest building in Granite Park, it was the seventh office property to open in the 2.3 million-square-foot development.

The post Granite Properties Tops Out Dallas Mixed-Use Project appeared first on Commercial Property Executive.

The two-year loan from Goldman Sachs has three one-year extension options. JLL Capital Markets arranged the financing.

The refinanced property comprises office and retail spaces, which total 505,994 square feet and are 98 percent leased.

The 21-story Class A office tower was completed in 2018 and features nine levels of garage parking. Tenants have access to an amenity deck with entertainment space, a tenant lounge, a fully equipped conference center and a fitness facility with locker rooms.

Salesforce, Invesco and the Dallas offices of law firm Akin Gump and accounting/advisory firm Weaver are among the property’s tenants. The project’s retail space is anchored by a Tom Thumb grocery store and the only Dallas locations for Fox Restaurant Concepts’ The Henry and North Italia.

READ ALSO: Coworking Spaces Surge Amid Changing Demand

The location on North Field Street in Uptown offers easy access to Victory Park, the Harwood District and downtown Dallas. It also boasts connectivity via Woodall Rogers Freeway, the McKinney Avenue Trolley and the DART Rail station.

The JLL Debt Advisory team was led by Senior Managing Director Jim Curtin, Managing Director Greg Napper and Vice President Rex Cruz.

Settling down

The Dallas–Fort Worth office market continues to slowly stabilize, although leasing still lags its historic pace, “suggesting that it will take considerable time for tighter market fundamentals to return,” according to a third-quarter report from Avison Young.

One of the challenges for landlords is that most recent leases have been for smaller tenants or for those that are upgrading—but also downsizing—their spaces to adjust for hybrid work arrangements, Avison Young reports. 

The Uptown submarket has seen a modest delivery total of 364,000 square feet year-to-date, though about 2.1 million square feet are currently underway. The submarket has a total availability of 26.7 percent, which is up slightly, year-over-year.

A couple of sizable recent office deals seem to span the range of ups and downs in the Dallas market.

Just last month, a joint venture of Enverra Real Estate Partners and Gulf Coast Western acquired Parkway Office Center North and South, a two-building, 230,000-square-foot distressed office campus in Dallas. The seller was Principal Financial, the asset’s former lender, which had foreclosed on the previous borrower, ORBIS Real Estate Fund I, an investment vehicle managed by APEX Pacific Partners Advisors.

Oil and gas company Gulf Coast Western is the largest tenant at the campus and has been there for more than a decade.

In contrast, back in April, a joint venture between Pacific Elm Properties and KDC secured a $290 million construction loan for Parkside Uptown, a 30-story, 500,000-square-foot office project in Dallas. Goldman Sachs Alternatives provided the four-year, floating-rate note.

The post RED Development JV Secures $227M Refi for Dallas Tower appeared first on Commercial Property Executive.

Sabey Data Centers has completed the first building of SDC Austin, its new data center campus in Round Rock, Texas. The 430,000-square-foot facility broke ground in July 2022.

SDC Austin is poised to maximize data center space while minimizing the construction footprint, ensuring scalability for deployments of all sizes.

Upon full build-out, the facility will provide up to 84 MW of critical power capacity. The project is also engineered to accommodate liquid cooling and high-density computing environments, supporting up to 200 kW per cabinet.

READ ALSO: Meeting the Insatiable Demand for Data Centers

The completion comes on the heels of the developer’s announcement that The Texas Advanced Computing Center chose Sabey Data Centers as its colocation partner for the Horizon supercomputer, which will be deployed in Round Rock. Horizon is set to be the largest academic supercomputer dedicated to open-scientific research in the National Science Foundation’s portfolio.

Part of a larger campus

The two-building campus is rising on the former site of a Sears call center. The other facility will measure about 105,000 square feet, according to Community Impact.

SDC Austin occupies 40 acres at 1300 Louis Henna Blvd., less than 4 miles from downtown Round Rock. Downtown Austin is 18 miles away, while the Austin-Bergstrom International Airport is some 23 miles southwest.

In February 2022, the Round Rock City Council approved an economic development agreement that grants tax incentives to the developer. Under the terms of the agreement, Sabey is required to invest at least $185 million in property enhancements and $5 million in new equipment and business personal property. The company must also create a minimum of 20 primary jobs within a five-year period.

North America saw a 10 percent increase in supply in primary markets in the first half of this year, accounting for about 515 MW, according to a CBRE report. The under-construction pipeline was up by 69 percent year-over-year. Additionally, Austin and San Antonio’s combined underway projects more than quadrupled from a year ago to 463.5 MW.

The post Sabey Completes 1st Building at Austin Data Center Campus appeared first on Commercial Property Executive.

VanTrust Real Estate has signed a leading manufacturer to more than 100,000 square feet at Building A within the Cornerstone Commerce Center master-planned industrial development in northeast San Antonio.

CBRE arranged the transaction, with Joshua Aguilar, SIOR, representing the tenant and Rob Burlingame, senior vice president with the firm’s local industrial & logistics division, representing VanTrust.

VanTrust delivered two Class A buildings at Cornerstone Commerce Center in 2023. Located at 5442 Center Run Road, Building A features 51 dock doors, three drive-in doors and spec office space and includes 117,925 square feet remaining for lease. Building B, which features 40 dock doors and three drive-in doors, has 190,734 square feet available for lease.

READ ALSO: Manufacturing’s Comeback Gains Ground

VanTrust purchased an additional 33 acres for the second phase of the project, which can accommodate as much as 400,000 square feet.

“The industrial market is currently undersized based on population, which gives it huge growth potential long-term,” Bill Baumgardner, executive vice president for VanTrust, told Commercial Property Executive. “Construction costs are also lower, which gives the market an economic advantage over its competitors.”

San Antonio benefits from its access to a diverse workforce and proximity to Interstate-35, Interstate-10 and Loop 410.

According to CBRE, the second quarter marked the 31st consecutive quarter of positive net demand for the San Antonio industrial market. More than 4.9 million square feet of industrial product were underway, and 26.2 percent of the total pipeline was preleased. No doubt, it’s a hot market.

A manufacturing powerhouse

As more companies explore bringing operations closer to home, there will be further opportunities to strengthen Texas’ position as a manufacturing powerhouse, driving more demand for industrial assets.

Texas already comprises more than 9 percent of the nation’s total manufacturing GDP. According to JLL research, the four major Texas markets (Austin, Dallas-Fort Worth, Houston and San Antonio) accounted for nearly 39 percent of U.S. net absorption in the first half of 2024.

For the first time in two decades, Mexico became the top trading partner of the U.S. in 2023, a title it has long held with Texas, whose relationship included $272.3 billion in total trade last year, according to JLL research.

The Texas border alone accounted for 66 percent of the total 2023 truck crossings from Mexico, with Laredo being a standout, facilitating 36 percent of all truck crossings from Mexico into the U.S.

Nearshoring has gained significant traction after the 2020 events exposed vulnerabilities in the global supply chain, prompting companies to rethink their business models. This operational shift offers many benefits, including shorter lead times, enhanced quality control and more efficient logistics processes.

Companies from various sectors, including advanced manufacturing, automotive, aerospace, electronics and consumer goods, have announced recent plans to relocate or expand operations in Texas. In response to this surge of new enterprises, Brownsville is underway on a state-of-the-art advanced manufacturing training facility.

Last month, VanTrust Real Estate sold Interstate West’s Building A, a 637,868-square-foot industrial facility in Ellabell, Ga., near Savannah. Goldrich Kest acquired the 2023-completed asset. JLL represented the seller.

The facility, which was fully leased by three tenants at the time of closing, is part of the 515-acre Interstate West. The industrial park currently comprises three completed buildings totaling roughly 2.8 million square feet, and an underway development expected to exceed 2 million square feet.

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Foundry acquired the office building and the associated 22 acres of land earlier this year. Dallas-based Thirty-Four Commercial was engaged by the unidentified seller to market the property to office users. As the market shifted and the demand for Class A industrial supply increased, the brokerage firm reached out to Foundry to buy the property.

Plano Midpoint will rise at 2700 W. Plano Parkway, the former site of Transamerica’s Plano office, which has been vacant since May 2020. The property is just north of the President George Bush Turnpike and some 21 miles from downtown Dallas.

Foundry will demolish the office building and replace it with two industrial facilities measuring 226,900 square feet and 96,100 square feet. Both buildings will feature 32-foot clear heights.

READ ALSO: Top 5 Markets for Industrial Deliveries

Jim Traynor, Foundry’s Developments & Investments deal principal for the Dallas area, said in a prepared statement the speculative project, the only one in Plano, meets a critical need for industrial space in the city where zoning for light industrial is rare.

The City of Plano approved a $750,000 grant for Foundry Commercial in June for the conversion project. The approval requires Foundry to build a minimum of 300,000 square feet of manufacturing, industrial, office and research and development space at the site and make property improvements worth at least $21 million by late December 2026.

Foundry’s other conversion projects

In addition to Plano Midpoint, Foundry’s other office-to-industrial conversion in the Dallas market is Horizon Landing, underway at 4000 Horizon Way in Irving, Texas. The first building is slated for completion later this year.

Foundry acquired the 24.2-acre property, including a two-story, 287,000-square-foot office building constructed in 1999, in December 2023. The site will soon feature three rear-load warehouses totaling 337,000 square feet. The conversion project will feature up to 70 trailer parking stalls or outside storage on an additional 2.4 acres.

Foundry’s D&I platform has increasingly been focusing on these strategic asset conversions in infill locations as demand for industrial properties grew while office vacancies increased. The platform has five other conversion projects in various stages of development and predevelopment, with more planned in the future. The company is demolishing more than 1 million square feet of obsolete office buildings and replacing them with about 2 million square feet of industrial space over the next 18 months.

Foundry is not the only developer with office-to-industrial conversions underway or completed. It’s a growing CRE trend, particularly in suburban markets with obsolete office space and strong demand for industrial properties near cities like Los Angeles, Chicago and Atlanta.

The post Foundry Eyes 2nd Office-to-Industrial Conversion in Dallas appeared first on Commercial Property Executive.

Waterstone will feature 32-foot to 36-foot clear heights, 232 dock-high doors, 10 drive-in doors and 994 parking stalls for its four buildings. The property, located on I-35, will offer connectivity to both Austin, Texas, and San Antonio. Waterstone will also be about 30 miles from Tesla’s Gigafactory—whose presence has increased industrial demand across the Greater Austin region—and about 25 miles from Austin–Bergstrom International Airport.

Kyle’s population grew from 28,000 people in 2010 to nearly 45,700 residents in 2020, as thus becoming one of Texas’ fastest-growing cities in recent years, according to Census Bureau data. Though not far from San Antonio, the town is closer to Austin, and part of metro Austin.

READ ALSO: E-Commerce Growth Revives Industrial Market

Waterstone is positioned in the market to provide opportunity to the growing south I-35 corridor in the Greater Kyle/San Marcos region, according to Cole Kennedy, a development and acquisitions associate at Lincoln Property Co., who added that the property can serve both Austin and San Antonio.

As a diversified CRE company, Lincoln’s management and leasing portfolio on behalf of institutional clients totals more than 510 million square feet. The company has completed over 150 million square feet of development since its inception in 1965 and another $20 billion is currently under construction or in the pipeline.

Affinius Capital, formerly known as USAA Real Estate and Square Mile Capital Management, has about $64 billion in assets under management in North America and Europe.

“Ongoing demand for industrial properties continues to outpace supply across most markets in the U.S., creating a compelling opportunity for strategic development,” Affinius Capital Managing Director Tom Burns told Commercial Property Executive.

“Despite the broader banking sector’s pullback from development lending, this segment remains one of our most active areas, and we anticipate continued robust engagement in the industrial market,” Burns said.  

An active CRE lender, Bank OZK operates in nine states and has about $36.8 billion in total assets.

Austin industrial inventory expands, vacancies up

Greater Austin remains an overall growth market for industrial, with more than 4.4 million square feet of speculative and build-to-suit product delivering during the third quarter of 2024, representing a high for quarterly deliveries, according to JLL.

New supply has put upward pressure on Austin industrial vacancy rates, which surpassed 14 percent in mid-2024, compared to around 3 percent as recently as 2021, JLL reported. That year, pandemic-era demand crested as companies struggled with supply chains and reshoring began in earnest.

Demand is still strong, however. Year-to-date absorption nearly doubled from the first half of the year to the first three quarters, spurred by strong net occupancy gains in the third quarter, JLL noted.

The post Lincoln Property, Goldman Sachs Secure Financing for Austin Project appeared first on Commercial Property Executive.

Crusoe Energy Systems has formed a $3.4 billion joint venture with Blue Owl Capital and Primary Digital Infrastructure to fund the development of a 206 MW data center outside Abilene, Texas. The developer had announced the purpose-built project taking shape at the Lancium Clean Campus in July.

Funds managed by Blue Owl’s Real Estate platform and Primary Digital Infrastructure will jointly sponsor the 998,000-square-foot, two-building data center being designed, developed and operated by Crusoe. Newmark served as advisor to the partnership. Primary Digital Infrastructure is an advisor to Crusoe.

Data center details

The data center will be a build-to-suit facility capable of supporting high energy density IT applications. The project will incorporate a design to support AI workloads at an industry-leading scale, according to Crusoe.

The design will be optimized for direct-to-chip liquid cooling and also accommodate air cooling. Once completed, the data center will be able to operate up to 100,000 GPUs on a single integrated network fabric. The site is expected to be powered by on- and off-site renewable resources, including surrounding wind developments and a possible large-scale on-site solar installation.

A Fortune 100 hyperscale tenant has agreed to a long-term lease for the entire facility, with occupancy set to begin in the second half of 2025. Chase Lochmiller, CEO & co-founder of Crusoe, said in prepared remarks they designed the data center to enable the largest cluster of GPUs and meet the rapidly expanding demand for purpose-built facilities for a market that will increasingly be powered by AI.

READ ALSO: Getting in the Heads of Data Center Tenants

This is the first phase of Crusoe’s development which will eventually expand to 1.2 GW capacity at the Lancium campus. The data center is expected to contribute nearly $1 billion to the local economy over the next 20 years, creating almost 100 local jobs.

Lancium broke ground on the Abilene campus in late 2022 and is projected to spend approximately $2.4 billion in real property improvements at the site, according to Data Center Dynamics. The 1,100-acre property currently has 200 MW of data center capacity, with 1,000 MW to be energized by 2025.

New focus for Blue Owl

The Abilene project is not the only recent digital infrastructure investment by Blue Owl, an alternative asset manager with more than $192 billion in assets under management.

In September, the firm formed a $5 billion joint venture with Chirisa Technology Parks and PowerHouse Data Centers to develop large-scale AI/HPC data centers for CoreWeave Inc. across the U.S. on a build-to-suit basis. The partnership expects to deploy up to $5 billion of capital.

And, last week, the New York-based firm agreed to acquire data center investment firm IPI Partners, the parent of data center companies Stack Infrastructure and Radius DC, for $1 billion. The IPI platform is one of the largest private U.S.-based data center investors with a portfolio of 82 data centers comprising more than 2.2 GWs of capacity across the globe.

Blue Owl said the acquisition will add about $10.5 billion in assets under management and further augment its digital infrastructure strategy. The deal is expected to close later this year or in the first quarter of 2025.

The post $3.4B Joint Venture Funds AI Data Center Development appeared first on Commercial Property Executive.

The Wideman Co. has appointed Partners Real Estate to lease Jones on Main, an 886,000-square foot office campus in downtown Houston. Partners Senior Vice Presidents Vince Strake and Lesley Rice will spearhead all leasing activity at the Class A property.

Wideman acquired the asset in May from Lionstone Investments, CommercialEdge data shows. CBRE was previously in charge of leasing.

The property was developed in phases between 1915 and 1951 and underwent multiple cosmetic renovations in 1987, 2002 and 2017, according to the same source. The LEED Silver-certified complex consists of four interconnected buildings rising 10, 13, 16 and 37 stories.

The 37-story building was the tallest skyscraper in the city until 1963, when the Exxon Building came online. The high-rise was previously known as the Gulf Building and the JPMorgan Chase Building as it houses the bank’s headquarters.

READ ALSO: What the AI-Driven Hiring Surge Means for CRE

Jones on Main features almost 20,000 square feet of retail space, 24 passenger elevators, a rooftop terrace and a cocktail lounge, as well as the 20,000-square-foot Finn Hall, a food hall currently undergoing a transformation. Planned upgrades include an upscale restaurant and a vinyl-record listening lounge, together with office space improvements and the creation of new spec suites.

Located on almost 2 acres at 708 and 712 Main St., the transit-oriented property is close to a host of dining and retail options and within walking distance of the JPMorgan Chase Tower. George Bush Intercontinental Airport is within 21 miles.

Houston’s vacancy rate above the national average

Despite the return-to-office policies, Houston’s office vacancy rate at the end of August clocked in at 25.9 percent, according to a recent CommercialEdge office report. The figure was well above the 19.4 percent national average. The metro’s average listing rate was $30.01, slightly below the $32.78 U.S. amount.

Back in April, Sovereign Partners tapped Partners Real Estate as exclusive leasing agent for San Felipe Plaza, a 980,742-square-foot tower also in Houston. Strake and Rice are part of that leasing team as well.

The post Partners Real Estate to Lease Historic Houston Office Complex appeared first on Commercial Property Executive.

MDH Partners has acquired Cedar Port IKEA, a 996,482-square-foot industrial distribution center in Baytown, Texas, near Houston. JLL represented the seller, identified by CommercialEdge as Blackstone’s Link Logistics.

Also known as Cedar Port Distribution Park, the asset is fully leased to Ikea and consists of two similar facilities: Building A, of 495,462 square feet, and Building B, of 510,020 square feet. 

Both Class A warehouses came online in 2017 and feature 32-foot clear heights, large 190-foot truck courts, ESFR sprinkler systems, abundant trailer parking and future rail capability.

READ ALSO: E-Commerce Growth Revives Industrial Market

Located at 4762 and 4830 Borusan Road, the industrial campus is only 2 miles from State Highway 99 and some 13 miles from Barbours Cut Container Terminal, offering regional connectivity and streamlined access to the Port of Houston.

The property is part of Cedar Port Industrial Park, reportedly the largest master-planned, rail- and barge-served industrial park in the U.S. The 15,000-acre campus features heavy utilities and tenants such as Walmart, GE, DHL and The Home Depot.

JLL Industrial Group Co-Lead & Senior Managing Director Trent Agnew, Senior Director Charlie Strauss and Director Lance Young led the Capital Markets Investment Sales and Advisory team representing Link.

Balanced growth

For the first time in more than 18 months, construction of industrial space in metro Houston rose quarter-over-quarter to a total of 8.8 million square feet, according to a third-quarter report from JLL.

Deliveries year-to-date have amounted to about 15 million square feet. However, occupancy gains in the third quarter outpaced completions nearly two-to-one, pushing total vacancy down to 7.1 percent, also per JLL.

Around the beginning of September, Safespill signed a full-building lease for Ares Management’s 192,400-square-foot Brittmoore Industrial Development, a Class A infill distribution facility in Houston. Transwestern Real Estate Services and Colliers represented the tenant and the owner, respectively.

The post MDH Partners Buys IKEA Distribution Center Near Houston appeared first on Commercial Property Executive.

Olive Co. has started work on McCarty Park, an industrial campus taking shape on nearly 100 acres in San Marcos, Texas. At full build-out, the complex will comprise some 768,400 square feet across six facilities.

The spec project’s first phase, involving the development of three rear-load buildings totaling some 343,700 square feet, is slated for completion by the second half of 2025.

Phase One will occupy more than 48.6 acres, roughly half of the park. Its three buildings will range from 94,600 square feet to 127,400 square feet and feature 28- to 32-foot clear heights.

READ ALSO: E-Commerce Growth Revives Industrial Market

The property’s truck courts will be as much as 170 feet deep. There will be parking for 496 autos, as well as designated trailer parking. CBRE Senior Vice President Darryl Dadon and Associate Olivia Reed are in charge of marketing and leasing the project.

Carrying the address 1600 E. McCarty Lane, the site is in the Interstate 35 Corridor between San Antonio and Austin, Texas, with proximity to both Austin-Bergstrom and San Antonio International Airports. The location has direct access to both I-35 and Highway 123.

McCarty Park is Olive’s first development in Central Texas, as the firm has confidence of the area’s continuous growth.

And the Oklahoma City-based company is hardly the only industrial real estate player interested in San Marcos. Recently, Triten Real Estate Partners acquired Central Texas Logistics Center, a seven-building, 485,885-square-foot industrial portfolio which represented its entry into the market as well.

Industrial vacancy rate down over the quarter

Greater Austin had nearly 10 million square feet of industrial space under construction in the third quarter of this year, according to a recent CBRE report. More than 99 percent of product was speculative distribution space.

Meanwhile, the metro witnessed nearly 1.6 million square feet of total net industrial absorption, the report shows, bringing market vacancy down 230 basis points quarter-over-quarter to 13.6 percent. Tesla occupying 430,000 square feet and Seoyon E-Hwa with 212,000 square feet were the main absorption drivers.

Tesla and Samsung have invested heavily in the metro, CBRE notes, spurring interest in the region by multinational and domestic automotive and semiconductor operations, especially Tesla suppliers HBPO, Simwon America Corp. and U.S. Farathane. Samsung suppliers LS Electric Co. and Hanyang Eng USA have also expanded in the region.

The post Olive Breaks Ground on Austin Industrial Park appeared first on Commercial Property Executive.

Pinnacle Bank Texas has sold Burnett Plaza, a 1.1 million-square-foot Class A office tower in Fort Worth, Texas, Dallas Business Journal reported.

The seller granted a leasehold deed to an entity affiliated with Trafalgar Homes, according to CommercialEdge information. The buyer also took out a $67.5 million acquisition loan from Pinnacle Bank Texas.

Pinnacle Bank had acquired the 40-story building for $12.3 million in May, at a foreclosure auction. The seller at the time, New York-based Opal Holdings, had defaulted on a $13 million loan.

A historic building

Burnett Plaza is the Fort Worth’s tallest tower, rising at 801 Cherry St. in the city’s central business district. Completed in 1983 and renovated in 2021, the high-rise features 12 passenger elevators, 22,291-square-foot floorplates, 6,700 square feet of retail space and 2,040 parking spots.

Amenities include a conference center with 150 seats, board room, fitness center, on-site cafe and convenience store, tenant lounge and a training room that can host up to 100 people. The property also offers services such as an on-site salon, a property management team, IT concierge services and cyber security providers.

Burnett Plaza’s tenant roster comprises Covenant Group, Kimley-Horn, the U.S. Department of Justice, CDM Smith and Enterhost, among others.

The office tower has access to Fort Worth Central Station and Interstate 30. Dallas Fort Worth International Airport is 22 miles away and downtown Dallas is 32 miles east of the property.

Moderate performance in the Metroplex

The office sales volume in the Metroplex reached $812 million as of August, according to a recent CommercialEdge report. The amount placed Dallas-Fort Worth on the seventh position among the best-performing U.S. metros. Assets changed hands at an average sale price of $125 per square foot, significantly lower than the $173 national figure.

In September, another distressed office property traded in the metro. A joint venture between Enverra Real Estate Partners and Gulf Coast Western purchased Parkway Office Center North and South, a two-building campus in Dallas. Principal Financial, the asset’s former lender, sold its interest in the loan to the duo, foreclosing on the previous borrower.

The post Fort Worth’s Tallest Building Changes Hands appeared first on Commercial Property Executive.

IDI Logistics has completed three industrial buildings in Round Rock, Texas. Totaling 310,689 square feet, they represent the first phase of Sunrise Commerce Center. The property spans 37 acres and is planned to encompass 465,660 square feet at full build-out. The developer broke ground last spring.

Partners on the project include general contractor Adolfson & Peterson Construction, 5G Studio Collaborative as architecture firm and civil engineer Pacheco Koch. Stream Realty Partners are handling the leasing efforts. AP’s role also included tenant finishes.

READ ALSO: Top 5 Markets for Industrial Deliveries

The three warehouses have rear load capabilities and include build-to-suit office space. The 175,170-square-foot Building A has 36-foot clear heights, 43 dock-high loading doors and two drive-in doors, as well as 230 car parking spaces and 62 trailer stalls.

Building B spans 59,274 square feet and has 18 dock loading doors and 93 vehicle parking spots, while the 76,247-square-foot Building C has 24 dock doors and 121 parking spaces. Both facilities have 32-foot clear heights.

Located at 2380 Oakmont Road, the campus is close to Interstate 35 and 4 miles from downtown Round Rock. Downtown Austin is within 23 miles, while the Austin-Bergstrom International Airport is 28 miles south.

The development’s second phase will include a 59,274-square-foot facility with 106 car parking spaces and a 95,693-square-foot building with 229 vehicle spots and 30 trailer stalls. Both warehouses will have 32-foot clear heights.

Stream Realty Partners Executive Managing Director & Partner Will Nichols, along with Managing Director & Partner Sam Owen are handling all leasing efforts.

Austin’s industrial supply surge leads to rise in vacancy

In the second quarter of this year, about 1.7 million square feet of industrial space came online across the metro, according to a Cushman & Wakefield report. A total of 6.2 million square feet were delivered in the first half of the year, contributing to a 320-basis-point year-over-year increase in vacancy.

In August, a joint venture between Ryan Cos. and DWS Group announced plans for Mustang Crossing, 1.2 million-square-foot, six-building industrial campus in Manor, Texas. The first phase of the project will include four facilities that are expected to break ground this December and come online by March 2026.

A few months earlier, Titan Development received city approvals for the development of the 1.3 million-square-foot Leander 183 Commerce Center. The campus will be constructed on 115 acres in Leander, Texas, and is scheduled for completion in 2036.

The post IDI Logistics Completes 310 KSF Project Near Austin appeared first on Commercial Property Executive.

Project partners included Greystar, Whitman Peterson and Marketplace Real Estate Group as equity partners, together with Comerica and Veritex, which provided construction financing. Method was the architectural firm. Burton served as general contractor and Westwood was the civil engineering firm.

Located at 6807 Elroy Road, the business park is just off Highway 130 and about 5 miles from Austin-Bergstrom International Airport and Tesla’s 2,500-acre Gigafactory. ATX 130 also has access to Interstate 35 and Highway 71.

The property could house various industrial users, including third-party logistics providers, R&D users, e-commerce distribution and consumer goods warehousing. Aquila Commercial is handling leasing for ATX 130.

Two buildings, fully leased

Two of the park’s buildings have already been fully leased. Jackson-Shaw expects the remaining two facilities to find tenants soon due to 67-acre complex’s strategic location in the rapidly growing Southeast Austin submarket.

Ferguson, a distributor of plumbing supplies, PVF, waterworks and fire and fabrication products, has leased the entire Building 3, a 207,280-square-foot facility with a 32-foot clear height and 45 dock doors.

Hotline Delivery, a third-party logistics company seeking closer proximity to the airport, has leased the entire 120,440-square-foot Building 1.

Building 2 has 80,365 square feet, while Building 4 measures 194,385 square feet. Both feature move-in ready spec office space to accommodate tenants’ immediate needs.

Features at all four facilities include ESFR fire protection systems, ample parking and trailer storage.

READ ALSO: Top 5 Markets for Industrial Deliveries

Miles Terry, vice president of development at Jackson-Shaw, said there is interest from users that would take the remaining full buildings and some that would take only a portion of each.

“Both buildings are designed to be flexible, with four entries to accommodate multiple tenants of various sizes or a single tenant,” Terry told Commercial Property Executive.

More Jackson-Shaw activity in Texas

Earlier this month, Jackson-Shaw broke ground on GreensPORT Logistics Park, a two-building, 535,478-square-foot industrial campus in Houston it expects to complete by the third quarter of 2025. The property has access to Interstate 10 and is about 14 miles from downtown Houston and 25 miles from George Bush International Airport.

Another Jackson-Shaw development in the Lone Star State is Post Oak Logistics Park, a 536,992-square-foot, two-building industrial project in Houston. In April, Festival Trading Co. leased an entire 168,893-square-foot facility at the 43-acre campus.

And, at the beginning of the year, Jackson-Shaw partnered with Compatriot Capital to develop Lakeview Business District, a more than 1.8 million-square-foot industrial campus in the Dallas-Fort Worth submarket of Rowlett, Texas. The complex will have five buildings ranging between 88,000 and 417,000 square feet.

The post Jackson-Shaw Completes Austin Business Park appeared first on Commercial Property Executive.

This month, Hillwood will break ground on Alliance Westport 24, a 1.1 million-square-foot Class A industrial building in Fort Worth, Texas. Completion is expected in the fourth quarter of next year.

The development team includes designer RGA Architects and civil engineering design firm Westwood, while Hillwood Construction Services serves as general contractor. The speculative facility will rise at the 27,000-acre AllianceTexas campus.

Upon delivery, the cross-dock building will have 40-foot minimum clear heights, 188 dock-high loading doors, four drive-in doors. The property will also feature 60-foot loadings bays, 190-foot truck courts, 394 vehicle parking spaces and up to 704 trailer stalls, as well as infrastructure for electric car and truck charging stations.

READ ALSO: Top 5 Markets for Industrial Deliveries

The development will take shape at southeast corner of FM 156 and Future Mobility Way, providing easy access to Interstate 35W. Downtown Fort Worth will be within 20 miles, while the DFW International Airport will be some 23 miles southeast.

Hillwood is also working on the 766,994-square-foot Alliance Westport 14, a development that will come online in June. And, a few months ago, the company completed Alliance Westport 25, a 1.2 million-square-foot building that is fully leased to Southwire. The AllianceTexas master plan currently has 57.8 million square feet of developed commercial real estate space.

Dallas’ industrial pipeline remains steady

Dallas’ under-construction pipeline ranked second nationally at the end of August with 16 million square feet, according to the latest CommercialEdge industrial report. Phoenix remained once again the leading market in the U.S., with almost 37 million square feet underway.

One of the current developments is Core30 Logistics Center, a two-building, 511,000-square-foot campus in Dallas. Crow Holdings Development broke ground on the project in May and delivery is anticipated in the first quarter of next year.

Another large project underway in the metro is Lakeview Business District, a more than 1.8 million-square-foot campus taking shape in Rowlett, Texas. Developed by Jackson-Shaw in partnership with Compatriot Capital, the industrial park will come online some 23 miles from downtown Dallas.

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A joint venture between Urban Logistics Realty and Formation Interests—an investment fund advised by Crow Holdings Capital—has sold Urban District 290, a 238,200-square-foot, shallow bay industrial property in Houston. CBRE represented the seller.

According to the Harris County public records, BZO Wheels Houston acquired the asset, financing the purchase with two loans totaling $40 million, issued by American First National Bank.

The partnership broke ground on the two-building project in 2022 and the industrial park debuted one year later. Inwood Bank provided financing while Burton Construction served as general contractor. Powers Brown Architecture and Kimley-Horn provided architectural and engineering services, respectively.

READ ALSO: Why Light Industrial Properties Will Continue to Shine

Building 1 is a side-load facility measuring 64,800 square feet, while the cross-dock Building 2 encompasses 173,400 square feet. The industrial campus has a total of 45 dock-high doors, 30 trailer parks and three oversized drive-in ramps. Additionally, the park features 32-foot clear heights and ESFR sprinkler systems.

Located at 5610 Bingle Road, the infill industrial campus is less than 1 mile from U.S. Route 290 and 13 miles northwest of downtown Houston. George Bush Intercontinental Airport and Port of Houston are roughly 25 and 20 miles away, respectively.

CBRE Executive Vice Presidents Nathan Wynne and Jason Dillee negotiated on behalf of the partnership.

Houston’s lack of zoning leads to infill developments

Houston is the largest city in the U.S. without a formal zoning code. Without a clear delineation of different land uses, developers rely on codes, regulations and deed restrictions. Therefore, infill industrial properties may be more common and rise side-by-side with residential homes on the same block.

A partnership between Investment & Development Ventures and Standard Real Estate Investments is planning such a project. Construction on the infill, 463,000-square-foot development is slated to start by the end of the year.  

Changing hands in the Houston industrial market

Metro Houston’s industrial sales volume totaled $1.6 billion as of August, according to a CommercialEdge report. Assets traded at $106 per square foot during the first eight months of the year, below the national average of $132 per square foot.

In one of the interval’s larger transactions, KKR purchased a 12-building logistics park in southwest Houston for $234 million. Artis Real Estate Investment Trust sold the approximately 1.8 million-square-foot campus.

The market’s industrial rents grew by 4.0 percent year-over-year through August, once again lagging the national average of 7.2 percent, the same report shows. Meanwhile, the vacancy rate clocked in at 7.7 percent in August, above the national average of 6.7 percent.

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The Malin has opened a 12,000-square-foot flex office location in Austin, Texas. The company’s new coworking space is at 1515 E. Cesar Chavez St. Pennybacker Capital is the developer and owner of the recently completed 71,623-square-foot office building, according to CommercialEdge information.

This is The Malin’s sixth location in the country and its first in Texas. The new space will include 24 dedicated desks, 10 private offices, four meeting rooms, two libraries and 12 phone booths. Membership access for the location includes three levels and day passes.

The Malin will also provide multiple services for its members, focused on ensuring a creative work environment, such as catered lunch, baked goods, coffee orders, fresh floral arrangements and access to an Executive Assistant program and concierge services.

Completed last year, the three-story, Class A creative office property includes 9,196 square feet of retail space and 187 vehicle parking spots. The building features floor-to-ceiling glass, a three-story green wall, private terraces, showers and bike storage spaces. In 2021, Pennybacker Capital secured a $28.2 million construction loan provided by First United Bank and Trust Co., CommercialEdge shows.

The Malin expanding its footprint

The building is close to downtown Austin, which allows access to multiple dining and retail options, as well as to bus stations and to Interstate 35. Austin-Bergstrom International Airport is 10 miles away.

In July, The Malin expanded its footprint with a 10,000-square-foot space in Savannah, Ga., that will open in 2025. The company partnered with Ann Street Lofts and the deal marked its first single-use building in its portfolio.

In March, the company announced its plans to open a 20,000-square-foot location dubbed The Malin NoMad, occupying the entire fifth floor of 387 Park Ave. S. in Manhattan, its fourth coworking space in New York City. The new coworking space will be available this month at TF Cornerstone’s 12-story, 232,000-square-foot property.

The post The Malin Enters Austin With 12 KSF Coworking Space appeared first on Commercial Property Executive.

Bixby Capital Management has purchased a 533,632-square-foot, Class A industrial portfolio in Mesquite, Texas. Huntington Industrial Partners previously owned the three-building park, CommercialEdge data shows.

CBRE brokered the deal and secured the financing on behalf of Bixby Capital. PCCP LLC provided an acquisition loan, according to public records.

The buyer closed the acquisition on behalf of Bixby Industrial Fund I—which closed this May with equity investors such as Goldman Sachs and Ares Management Real Estate. Through the same fund, Bixby recapitalized five industrial properties with a $200 million note earlier this year.

READ ALSO: Dallas Industrial Investment Sees Surge

Huntington broke ground in December 2022 after securing a $35.5 million construction loan from Simmons Bank, CommercialEdge data reveals. One year later, the three buildings came online. At the time of its sale to Bixby, the industrial campus was 78 percent leased to two tenants.

The park includes a 241,512-square-foot, cross-dock facility and two front-load buildings measuring 117,260 and 174,860 square feet. The campus has a total of 48 dock doors and its facilities have 32-foot clear heights. Throughout the park, 386 car- and 99 trailer-parking spots are available while the truck court depth ranges between 130 and 200 feet.

The 42.4-acre campus is at 1420, 1204 and 1110 Military Parkway, roughly 2 miles from Interstate 635 and some 4 miles from U.S. Route 80. The Mesquite Metro Airport operates more than 5 miles east of the industrial park, while downtown Dallas is some 13 miles west.

The CBRE team which brokered the deal included National Partners Vice Chairman Randy Baird, Executive Vice Presidents Jonathan Bryan, Ryan Thorton, as well as Nathan Wynne, among others. CBRE Executive Vice President Scott Lewis alongside Vice President Matt Ballard secured the financing on behalf of Bixby.

The Metroplex ranks first for industrial sales volume

Dallas-Fort Worth investors traded nearly $3 billion in industrial assets year-to-date through August, the most out of any metro this year, the latest CommercialEdge industrial report shows. More than 24 million square feet changed hands, at an average of $138 per square foot—slightly above the $132 national figure.

Last month, Stonepeak closed on two industrial assets totaling 1.1 million square feet in the Metroplex. Institutional investors advised by J.P. Morgan Asset Management sold the assets. Another recent notable deal was DRA Advisors’ purchase of an eight-building portfolio in Plano, Texas. Link Logistics sold the fully leased assets.

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The three buildings are located at 2501, 2701 and 2801 S. Airfield Drive in Irving, Texas. They are part of the second and third phases of the DFW Commerce Center.

READ ALSO: Why Light Industrial Properties Will Continue to Shine

Phases II and III provide excellent access to SH 161, SH 183 and SH 114 for distribution and warehouse users. The buildings are the last developed properties on a Dallas-Fort Worth International Airport ground lease with Foreign Trade Zone capability. The facilities feature clear heights ranging from 32 to 40 feet and 180- to 185-foot truck court depths. They also have 399 dock doors.

Airport proximity is beneficial

According to Robert Smietana, president & CEO of HSA Commercial Real Estate, proximity to airports proves valuable in several ways. His firm has been actively developing two industrial parks adjacent to Indianapolis International Airport over the past 15 years.

“Warehouses and distribution centers that house delicate and costly inventory for life science and biotech companies need to be located near a major airport, as products are often transported via plane under temperature-controlled conditions to arrive safely within hours at locations across the country,” he told Commercial Property Executive.

In September, Harbor Capital has entered the Dallas-Fort Worth market by acquiring Corbin Industrial Park, a 20-building, 606,911-square-foot industrial campus in Denton, Texas. CommercialEdge data shows that Mar-Properties sold the portfolio.

The industrial park is at 5000 Shelby Lane, close to Interstate 35W and less than 2 miles from the Denton Enterprise Airport. Downtown Fort Worth is within 36 miles, while the DFW International Airport is 30 miles away.

In September, Invesco Real Estate, in a joint venture with Perot Development Co., sold a 219,000-square-foot, fully leased Class A distribution center in Irving, Texas.

DFW Park 161 AMZL at 3100 State Highway 161, completed earlier this year, is within the master-planned DFW Park 161 and the DFW Airport Industrial submarket, one of the region’s most sought-after industrial areas.

The post Goldman Sachs JV Lands $115M Refi for Industrial Portfolio appeared first on Commercial Property Executive.

Hines has started construction on Grainger’s Houston Texas Distribution Center, a 1.2 million-square-foot development in Hockley, Texas. Delivery is scheduled for 2026.

The industrial supply company first announced plans for this project in February. Upon completion, the distribution center is set to be one of Grainger’s largest facilities and will employ about 400 members in the first year.

The facility will boost the company’s available inventory of industrial supply products in the market, expanding it from 150,000 to as many as 300,000 distinct items. The warehouse will store a diverse range of supplies, including hand and power tools, HVAC systems, lighting, power transmission devices, fluid power components and motors.

When complete, the Class A property will feature 36-foot clear heights, 52- by 50-foot column spacing and about 740 car parking spaces. The development is taking shape on 108 acres at the corner of Roberts Road and Hempstead Highway, just off Interstate 290. Downtown Houston is 35 miles away, while the George Bush Intercontinental Airport is some 39 miles southeast.

Houston’s growing industrial inventory

Houston had 6.7 million square feet of industrial space underway at the end of August, according to the latest CommercialEdge industrial report. The market’s vacancy rate that month was 7.7 percent, above the 6.7 percent U.S. average.

One of the currently underway projects in the market is a five-building, 1.4 million-square-foot campus developed by Trammell Crow. The Class A property is slated to come online next summer.

Also in Houston, Jackson-Shaw recently broke ground on GreensPORT Logistics Park, a two-building, 535,478-square-foot industrial development. The facilities will have front-load and cross-dock configurations and are expected to be delivered in the third quarter of next year.

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Jackson-Shaw is developing GreensPORT Logistics Park, a two-building, 535,478-square-foot industrial campus in Houston. The developer already broke ground on the project and expects delivery in the third quarter of next year.

Partners on the development include general contractor Burton, architecture firm Goree and civil engineer Kimley-Horn. Greystar-Thackeray is the equity partner, while Cushman & Wakefield is handling leasing efforts. Additionally, Comerica Bank provided a $27.6 million construction loan that matures in 2028, according to public records.

Building 1 will be a 149,477-square-foot, front-load facility with 32-foot clear heights. Upon completion, the warehouse will have three drive-in doors, 26 dock-high loading doors, 130- to 240-foot truck courts, 66 trailer stalls and 144 car parking spots.

READ ALSO: Why Light Industrial Properties Will Continue to Shine

The 386,001-square-foot Building 2 will have a cross-dock configuration and 36-foot clear heights. The development will have 90 dock loadings, 130- to 185-foot truck courts, 95 trailer spots and 216 car parking spaces. The facility will also be rail ready.

The two buildings will provide flexibility for multiple tenants. The campus is taking shape at 1823 Haden Road, providing easy access to Interstate 10. Downtown Houston will be within 14 miles, while George Bush Intercontinental Airport will be 25 miles away.

Cushman & Wakefield’s Executive Managing Directors Beau Kaleel and Brooke Swerdlow, along with Executive Director Michael Foreman, are taking care of leasing efforts.

Houston’s under-construction pipeline remains steady

Houston’s industrial sector had 6.7 million square feet of space under construction as of August, according to the latest CommercialEdge industrial report. The metro’s vacancy rate at the end of the same month clocked in at 7.7 percent, 100 basis points higher than the national average.

In August, Trammell Crow Co. started construction on Blue Ridge Commerce Center, a 1.4 million-square-foot industrial campus in Houston. The five-building project is scheduled to come online next summer.

A month earlier, Capital Development Partners completed Building II at Cedar Port Logistics Center in Baytown, Texas. The 800,405-square-foot facility is part of a 90-acre campus that broke ground in 2021.

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Triten Real Estate Partners has acquired Central Texas Logistics Center, a seven-building, 485,885-square-foot industrial portfolio in San Marcos, Texas, within metro Austin. Peak Rock Capital previously owned the properties, CommercialEdge data shows.

This purchase marked Triten’s entry into the Austin submarket and its largest industrial acquisition to date.

Delivered between 2008 and 2022, the buildings feature cross-dock, rear- and front-load configurations, as well as 24-foot clear heights and an average suite size of 27,595 square feet. The industrial park is 100 percent-leased to 15 national and regional tenants, including Lowe’s Pro Supply, Builders Alliance, Goodman and West Shore Home, among others.

READ ALSO: CRE Prices are Stabilizing

Central Texas Logistics Center is at 1551 and 1600 Clovis R. Barker Road, within the Texas Innovation Corridor. The 46-acre portfolio is roughly 36 miles southwest of downtown Austin and some 47 miles northeast of downtown San Antonio, as well as about 2 miles from Interstate 35.

Since 2021, Triten has acquired or developed nearly 50 supply chain properties encompassing about 500 acres, with an aggregated market value of more than $450 million. Additionally, the firm purchased and built north of 3 million square feet of traditional industrial space.

Before Triten’s entry into the Austin submarket this year, the company took steps to expand its industrial and IOS portfolio the year prior with assets throughout Dallas, Philadelphia, Atlanta and Washington, D.C., according to prepared remarks by Will Hedges, partner at Triten Real Estate.

Metro Austin’s industrial investment treads water

Metro Austin investors traded 50 industrial assets during the first nine months of the year, according to CommercialEdge data. These encompassed more than 3.5 million square feet and changed hands at an average of more than $171 per square foot, for a total industrial investment volume north of $264 million.

Although investors exchanged one more property this year compared to the same period of 2023, last year’s average price per square foot rose upward of $415, the same source shows. The first nine months of 2023 saw more than 4 million square feet of industrial space being traded.

Another significant transaction in metro Austin was EQT Exeter’s purchase of 110 SE Inner Loop, a 449,642-square-foot asset in Georgetown, Texas. Portman Holdings sold the property for $60.9 million in March.

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RBC Wealth Management has signed a 11,710-square-foot, seven-year lease at Uplands Corporate Center, a two-building Class A office campus in the Southwest submarket of Austin, Texas.

The tenant, a division of RBC Capital Markets LLC and part of Royal Bank of Canada, will open its office by the end of this year at the Uplands II building.

Drawbridge Realty is the owner of the 291,448-square-foot property. With the closing of this deal, there are 14,000 square feet of remaining space available for lease.

READ ALSO: Austin Office Market Commands High Prices

Current tenants at Uplands Corporate Center include Tricentis USA Corp., WuXi Clinical, Quisitive, Kimley-Horn and ResearchPoint Global, among others, according to CommercialEdge.

Cushman & Wakefield’s Director Ricky Whiteley negotiated on behalf of the tenant, while the company’s Executive Director Matt Frizzell and Executive Managing Director Kevin Granger represented the landlord and are in charge of leasing.

A closer look at the Austin office campus

Drawbridge Realty acquired the 167,368-square-foot Uplands I in 2014 for $42.5 million, from seller CBRE Investment Management, the same source shows. The owner added a second building to the campus in 2021. The 124,080-square-foot project was subject to $33.4 million in construction financing, provided by Bank of America.

Designed by Levy Architects, the Uplands II is the first building in Austin to achieve all three LEED, WELL Compliant Silver Building and RESET Air Standard certifications. The property’s HVAC systems feature UV purifiers and high exchange rates for outside air, allowing for an improved air quality.

Completed between 2007 and 2021, the campus includes five passenger elevators, collaborative lounge with covered and uncovered areas, dining spaces, parking spots and EV charging stations. Both buildings also provide access to an on-site fitness center, adjacent garden and a food truck court with running and walking trails.

Located at 5301 Southwest Parkway, the property is 8 miles from downtown Austin, 13 miles from Austin-Bergstrom International Airport and within 33 miles of San Marcos Regional Airport.

Leasing activity in the metro

As of August, Austin’s office vacancy rate clocked in at 27.8 percent, marking a 660-basis-point increase over a 12-month period, according to a recent CommercialEdge report.

Earlier this month, IBM signed a 320,000-square-foot full-building lease at Domain 12 in Austin, owned by Cousins Properties. The tenant is assuming Meta Platforms’ existing commitment at the property, while also extending its commitment to 2040.

In February, Transwestern Real Estate Services landed the leasing assignment of a 521,401-square-foot office portfolio in the metro. The collection, owned by Pacific Oak Capital Advisors, includes eight buildings across three office campuses.

The post Drawbridge Inks Long-Term Lease at Austin Office Campus appeared first on Commercial Property Executive.

Shorenstein has acquired the 388,000-square-foot International Plaza II, a 15-story office tower in north Dallas, from Taconic Capital, which tapped JLL to market the building earlier this year.

Taconic acquired the property in 2018, largely as vacant space that had previously been occupied by JPMorgan Chase and Fannie Mae. The investor spent about $26 million to make renovations to the property, which were completed in 2020. Since the first quarter of 2020, about 360,000 square feet has been leased at International Plaza II.

The building’s upgrades included the addition of about 50,000 square feet of new amenity space, such as a full-floor food hall, a coffee and wine bar, indoor and outdoor tenant lounges, and fitness and conference centers. A newly built event center, Lake House, offers both indoor and outdoor settings for tenant events.

READ ALSO: The Metroplex’s Office Sector Holds Steady

International Plaza II is 93 percent occupied, well above the average for the DFW office market, with its remaining space on offer for $45 per square foot. That is above the North Tollway area average of about $32 per square feet.

Tenants at the property include Interstate Batteries, event services firm Freeman and the accountancy Forvis. None of the seven leases currently in place at the building expire in the next 12 months, CommercialEdge shows. The leases—with an 11-year weighted lease term—provide a durable cash flow stream, according to prepared remarks from Colby Wick, managing director at Shorenstein.

The building, on one acre at 14221 Dallas Parkway, came online in 2000, and includes a multilevel parking structure with 1,624 spaces.

DFW office still smarting

During the second quarter of 2024, Dallas-Fort Worth office recorded 125,700 square feet of negative absorption, according to Colliers, an indication that demand is still suffering postpandemic. A year ago, demand was even weaker: In the second quarter of 2023, negative absorption came in at 313,300 square feet.

Colliers puts the market vacancy rate at 21.0 percent as of last quarter, up from 20.3 percent a year earlier, though Class A buildings continue to have the edge when it comes to attracting tenants. Rents on average are declining, down 0.32 percent quarter-over-quarter.

In response to weak metrics, DFW office development has slowed. Only 600,000 square feet was delivered during the second quarter of 2024, compared with 1.5 million during the same quarter a year earlier.

The post Shorenstein Buys 388 KSF Dallas Office Asset appeared first on Commercial Property Executive.

CRC acquired The Crossroads of Taylorsville through its Continental Realty Opportunistic Retail Fund I LP, a close-ended fund for which roughly $323 million has been raised and that the company also used to enter the Virginia market this spring.

Over the past 12 months, new leases and renewals at the shopping center totaled more than 75,000 square feet.

Anchored by Target and shadow-anchored by Harmon’s Grocery, The Crossroads of Taylorsville has 60+ tenants, including Dollar Tree, T.J. Maxx, Ross Dress for Less, EOS Fitness, Guitar Center, PetSmart, King Buffet, Lifetime Products, Applebee’s , Subway, Regal Cinema and Sierra Trading Post, among others.

The shopping center was 94 percent leased at the time of the deal, but CRC plans to leverage the current tenant mix to achieve full occupancy, according to a prepared statement from CEO JM Schapiro.

READ ALSO: Bridging the Funding Gap for Retail

The Crossroads of Taylorsville came online in 1982, encompassing 10 buildings and 7 separate outparcels or multitenant strip buildings. The retail center’s parking lot has a capacity of almost 3,900 vehicles. Six years ago, The Crossroads of Taylorsville became subject to a $69 million loan originated by NexBank, CommercialEdge data shows.

Located at 5400 S. Redwood Road, The Crossroads of Taylorsville is within an Opportunity Zone in Salt Lake City’s Taylorsville submarket. The shopping center serves around 420,000 individuals and 53,000 households within a 5-mile radius, with the average household income of approximately $96,000, according to CRC.

Salt Lake City’s retail scene

The Salt Lake City retail market ended the second quarter with a 3.9 percent availability rate, marking a 0.2 percent increase from the previous quarter, according to a recent CBRE report. In the second quarter of the year, only 45,000 square feet of retail space was introduced to the market, compared to 136,000 square feet in the first three months of the year.  

Meanwhile, the average asking lease rate fell by $0.60, settling at $22.35 per square foot as of June. The total sales volume was only $41.3 million in the second quarter, the same source shows.

The post CRC Makes Utah Debut With 630 KSF Retail Buy appeared first on Commercial Property Executive.