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.

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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.

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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.

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.

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.

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.

The post Law Firm Expands Dallas Office Footprint 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.

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.

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.

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.

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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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.

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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.

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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 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.

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Wilks Development has acquired One Ridgmar Centre, a 177,199-square-foot Class A office building in Fort Worth, Texas. The previous owner was Holt Lunsford Commercial, which purchased the property in 2017 from Newmark, CommercialEdge shows.

The buyer plans to invest $1 million to renovate the roof and HVAC systems of the newly purchased asset, and another $8 million over the next five years for common-area improvements.

The office tower became subject to a $16.3 million 10-year loan in 2021, originated by Fidelity Bank, according to CommercialEdge data.

One Ridgmar Centre is a 10-story building completed in 1986. The property was 32 percent vacant at the time of the deal, below Fort Worth’s average for office buildings. Since the transaction, the new ownership secured new leases totaling 30,000 square feet. Equify Financial LLC is one of the new tenants. The roster also includes Quantum Valve and Oilfield Solutions, Enercon, Farmers Narional, CobbFendley, Certrec, City Bank Mortgage, ClearChoice Dental Implant Centers and Principal Financial Group.

The office tower is at 6500 West Freeway, just off Interstate 30. One Ridgmar Centre is less than 1 mile from Ridgmar Shopping Mall, which has several eateries and retail options available. Downtown Fort Worth is some 7 miles east.

Earlier this year, Wilks broke ground on the first phase of Firefly Park, the developer’s $550 million project in Frisco, Texas. The mixed-use master plan will cover a 242-acre site and is slated to feature more than 650,000 square feet of office space. This first phase is scheduled for completion in 2027.

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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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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.

READ ALSO: How Dining Trends Are Reshaping Shopping Centers

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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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.

The post Birtcher, Belay Sell DFW Light Industrial Portfolio appeared first on Commercial Property Executive.

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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Global law firm Paul Hastings LLP has signed a 37,000-square-foot long-term lease at Knox Street, a mixed-use development in Dallas. A joint venture of BDT & MSD Partners, Trammell Crow Co., The Retail Connection and Highland Park Village Associates is behind the large-scale project. CBRE worked on behalf of both parties.

The 1 million-square-foot mixed-use development broke ground in late 2023. The project’s 150,000-square-foot office component is now fully preleased two years before its completion.

Upon delivery, the building will comprise seven stories of boutique office space with amenities such as a fitness center with high-end locker rooms, a tenant lounge and a café. The first two floors will include retail and dining options.

Paul Hastings joins anchor tenant ISN Software Corp. at the property that is scheduled to be completed by late 2026. BDT and MSD will also occupy space in the office tower.

READ ALSO: Growth in Office Tenant Costs Moderates

Knox Street will also include The Knox Hotel & Residences, managed by Auberge Resorts Collection, more than 100,000 square feet of retail and restaurants, as well as a 0.5-acre park with a direct connection to the Katy Trail.

The area has been a bright spot for landlords and tenants as the district promotes walkability, cultivates green space and has a highly social atmosphere. It is also a gateway to Highland Park.

CBRE’s Executive Vice President Trey Smith, alongside Senior Vice Presidents Alexandra Cullins and Ben Davis, negotiated the lease on behalf of the ownership. Paul Hastings was represented by Vice Chairmen Clay Hammerstein, Phil Puckett and Ken Rapp, together with Executive Vice President Harlan Davis and Transaction Manager Morgan Griffith, also with CBRE.

Recent office leases in Dallas

Nearby, law firm Walters, Balido & Crain has signed a seven-year lease renewal and expansion at Meadow Park Tower. The firm has been a constant presence in the 262,776-square-foot office building for the past 11 years.

Additionally, law firm Gray Reed signed a long-term commitment at 1845 Woodall Rodgers in Dallas, occupying two floors at the nearly 50,000-square-foot building. The tenant will beginning construction of its new office space next year.

The Dallas office market witnessed a 22.9 percent vacancy rate in September, up 390 basis points over the year, according to a recent CommercialEdge report. The rate was also 3.4 percent higher than the national average.

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Ryan Cos. has completed Ryan Tower, a 409,000-square-foot Class AA office building in Plano, Texas.

The Minneapolis-based company served as developer, design builder and equity partner, while Gensler designed the building. Lincoln Property Co. will manage the property.

Koch Real Estate Investments was also partner on the project, while Acore Capital provided at least $125 million in construction financing.

Ryan LLC—not affiliated with the developer—will be the property’s anchor tenant. The global tax and services and software provider will occupy approximately 50 percent of the building. Koch will also lease some 29,000 square feet at the tower.

READ ALSO: How AI Firms Are Reviving Office Space Demand

Located on 3.6 acres at 8101 Windrose Ave., the 23-story Ryan Tower is in Dallas-Fort Worth’s Platinum Corridor North submarket. As part of the $3 billion mixed-use development Legacy West, the property is surrounded by retail, restaurants and other office and residential components.

Meeting the needs of a modern workforce

Ryan Cos. first announced plans for the project back in 2021, breaking ground almost one year later. The tower was designed to meet the needs of the modern workforce, according to the company’s Director of Development Hank Biddle.

Gensler and Ryan designed the office tower to offer flexible workplace environments and floorplates, shared workspaces, adaptable tenant areas and individual offices. Ryan Tower features a fitness center, a conference center, a tenant lounge, a coffee bar, an outdoor terrace, a yoga lawn, bike storage, greenspaces, covered parking and approximately 1,600 parking spaces.

The developer aims to achieve Fitwel certification, which involves adding amenities to enhance the health and wellness of building occupants.

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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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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.

READ ALSO: Capital Ideas: What to Watch for in the Trump Presidency

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.

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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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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.

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.

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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.

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.

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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.

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.

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“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.

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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.

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.

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.

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.

The post Hillwood to Develop 1.1 MSF Facility in Fort Worth 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.

The post Bixby Buys 534 KSF Metroplex Industrial Portfolio appeared first on Commercial Property Executive.

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.

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.

Completed in 1948, Skillman Live Oak encompasses three buildings spread on some 4 acres. At the time of the deal, the shopping center was 77 percent leased.

Skillman Live Oak’s tenant roster is a mix of national and regional tenants such as Pizza Hut, MetroPaws, UPS, Gallery Central, Sunstone Yoga, Crossfit and Buzz Brews, among others.

The asset is within East Dallas, at 1914 Skillman St. Situated at the intersection of Skillman and Live Oak, the shopping center is within the affluent Lakewood neighborhood, serving residents with an average household income of $142,100, according to JLL.

Director Erin Lazarus, Senior Managing Director Adam Howells, Associate Megan Babovec and Analyst Ben Pollack led the Investment and Sales Advisory team working on behalf of the seller.

With 15 straight quarters of positive net absorption, Dallas-Fort Worth is thriving and showing positive retail market trends, as highlighted in a recent Partners Real Estate report. The metro’s development pipeline is robust, with 4.8 million square feet of retail space under construction as of June, mainly in the northern suburbs.

Record-high asking rents emphasize the market’s competitiveness, with rates reaching an average of $20.65 per square foot, up 8 percent year-over-year, the same source shows. Elevated rental rates in North Central and Central Dallas underscore sustained demand for prime locations.

The post BGO Sells Dallas Shopping Center appeared first on Commercial Property Executive.

In a joint venture with Enverra Real Estate Partners, Gulf Coast Western has purchased Parkway Office Center North and South, a two-building, 230,000-square-foot office campus in Dallas.

Principal Financial, the asset’s former lender, sold its interest in the loan to the duo, foreclosing on the previous borrower. JLL represented the seller.

ORBIS Real Estate Fund I, an investment vehicle managed by APEX Pacific Partners Advisors, was the prior borrower, CommercialEdge data shows.  

Oil and gas company Gulf Coast Western was the largest tenant at the property when the deal closed, occupying 14,000 square feet according to the Dallas Business Journal. Its tenancy dates back more than 12 years.

READ ALSO: CPE Asks: What Makes a Distressed Office Property a Good Investment?

The newly formed Enverra focuses on repositioning underperforming properties in high-potential growth markets, according to prepared remarks by Tommy Spinosa, the company’s managing partner.

Repositioning underperforming assets

The property came online in 1982 and previously underwent cosmetic renovations in 2012, CommercialEdge data shows. Rising nine stories, the buildings features floorplates ranging between 12,000 and 14,000 square feet, six elevators, controlled access and offer 826 car parking spaces.

The new landlords are planning an overhaul for the underperforming campus. GCW President & CEO Matt Fleeger said, in prepared remarks, that the refurbishment process will include improvements to the facade, landscaping, garage, lobbies, cafe and common areas.

Plans also call for several additions, such as a gym, lounge, conference room and golf simulator, as well as 38,000 square feet of build-to-suit office space, Fleeger added. The team expects completion by the summer of 2025, the Dallas Business Journal reports. Following the capital improvements, Parkway Office Center will cater to smaller companies wanting to lease an entire floor. The property was 45 percent leased upon closing, according to the same source.

Located at 14180 Dallas Parkway, the campus is less than 1 mile from Interstate 635 and roughly 12 miles north of downtown Dallas. Multiple retail facilities and quick-service restaurants can be found within 2 miles.

Dry powder in pursuit of distressed real estate

Although distress in the office sector has been long awaited and then apparent for some time now, its scale and pace remain a point of contention. MSCI Real Assets placed the office sector property distress at $38.2 billion in the first quarter, leading the way and accounting for 12.9 percent of total existing and potential distress across all major property categories.

As investors wait for prices to reset and further opportunities to materialize, global private equity and venture capital funds held a record-breaking $2.6 trillion in uncommitted capital as of July 10, according to S&P Global Market Intelligence and Preqin data. The investment vehicles added $49.4 billion to their reserves during the first half of 2024, nearly doubling the amassed capital during the entire year of 2023, which clocked in at $28 billion.

However, buyers are deploying some of the dry powder, purchasing distressed assets. In August, Menashe Properties paid $33 million for Montgomery Park, a 768,443-square-foot office property in Portland, Ore., after the owners defaulted on debt. The asset previously traded for $255 million in 2019.

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

The company plans to break ground on the business park next year, with completion scheduled for 2026. Clay Road Business Park will include three shallow-bay buildings with varying depths and sizes, but all of them will feature 32-foot clear heights, dock-high and ramp loading doors, ESFR sprinklers and trailer parking.

The site, at 101 Clay Road, is about 15 miles east of downtown Dallas and 35 miles from Dallas-Fort Worth International Airport. It is also situated in a major DFW industrial submarket. 

Major distribution tenants in the area include FedEx Freight, Lineage Cold Storage, Daltile, Pep Boys, and General Dynamic. Such institutional investors and owners as Blackstone, Clarion, Exeter, Goldman Sachs and Prologis have also been active in the area.

READ ALSO: Why Light Industrial Properties Will Continue to Shine

The developer acquired the property in an off-market deal for an unspecified price. JLL represented CapRock in the transaction, led by industrial brokers Kurt Griffin, Nathan Orbin, Dalton Knipe and Weston King.

Clay Road will be the company’s first development in Texas, but hardly its only real estate play in the state. In April, CapRock acquired Peachtree Distribution Center, a 396,750-square-foot, fully leased facility in Mesquite, a Dallas-Fort Worth submarket, its first industrial property in the state.

Thus far CapRock has about 2 million square feet of industrial in the state, either acquired, under contract or in the development process. CapRock has been an active industrial investor and developer in the western and central U.S., with a total investment and development pipeline of more than 32 million square feet since 2009.

DFW industrial fundamentals still strong

The Dallas-Fort Worth industrial market has strong fundamentals, with 9 million square feet of positive absorption in the second quarter of 2024, according to Newmark. That is roughly in line with quarterly absorption levels in 2023.

Year-over-year, rents for DFW industrial gained 9.4 percent in the second quarter of this year, coming in at $9.85 per square foot, which Newmark terms a new historical high.

Developers have responded by upping the supply dramatically, though at a somewhat slower pace in the second quarter of 2024. Still, 20.7 million square feet were under construction during the quarter, and vacancy has increased by 280 basis points compared with last year, coming in at 9.6 percent.

The post CapRock Plans Dallas-Fort Worth Industrial Park appeared first on Commercial Property Executive.

Billingsley Co. has obtained $62.4 million from Allianz Life Insurance for Denton Distribution Center, a newly constructed industrial campus totaling nearly 900,000 square feet in Denton, Texas, public records show. The fixed-rate note refinances the existing construction debt, a $61.4 million loan from Frost Bank, according to the same source.

JLL worked on behalf of the borrower. The Debt Advisory team, which has worked with Billingsley in the past, was led by Dallas office Co-Head & Senior Managing Director Campbell Roche and Director Kristi Leonard, together with Analysts Jordan Buck and Aaron Craig.

Denton Distribution details

Situated on 50 acres at 3333 W. University Drive, Denton Distribution Center came online this year in one of Dallas-Fort Worth’s growing industrial submarkets. The larger building totals 451,384 square feet, while the other one has 448,386 square feet.

The two cross-dock assets are fully leased long-term to a total of five tenants. Both buildings have 32-foot clear heights and suite sizes ranging from 60,000 to more than 250,000 square feet. The larger facility has 120 dock-high doors, while the second warehouse has 106 dock-high doors. George Billingsley of Billingsley Co. handled the development and leasing of Denton Distribution Center.

The location provides accessibility across the Metroplex via Interstate 35. Downtown Dallas is 42 miles away.

Billingsley developments

Billingsley has built more than 9.5 million square feet of industrial space in the Dallas-Fort Worth area, Houston and Chicago. The firm also develops office, retail, mixed-use, multifamily and single-family properties. In total, its portfolio includes more than 10 million square feet of commercial properties and more than 8,500 multifamily units.

Billingsley is also known for its master-planned developments, particularly in the Metroplex. In May 2023, the company began construction on the first phase of Sloan Corners, a 500-acre mixed-use development in Fairview and Allen, Texas. At full build-out, Sloan Corners is expected to be valued at $3 billion and encompass more than 10.6 million square feet of office space, 220,000 square feet of retail space and 6,000 multifamily units.

The post Billingsley Lands $62M for Dallas Industrial Campus appeared first on Commercial Property Executive.

The data center campus, already under construction on 292 acres in Red Oak, Texas, marks the third land acquisition by the Dallas-based company in the past year.

The company’s combined expansion across more than 450 acres will provide 5.8 million square feet of data center space and 792 MW of critical IT load across three sites. The other locations are a 95-acre, 120 MW campus in Atlanta acquired in October 2023 and an 85-acre, 192 MW campus in Culpeper, Va., acquired in November 2023.

READ ALSO: Data Center Labor Shortages Take Center Stage

The three new campuses will more than double DataBank’s portfolio. The company had 2.7 million square feet of data centers and 375 MW of power at its locations before the acquisitions. The company stated the expansion will position it to capitalize on AI-generated colocation demand for years to come. DataBank notes the three sites will be ideal locations for its enterprise, large technology, AI and hyperscale public cloud customers, while positioning the company for significant future growth.

Company expansion

Phase 1 of the Red Oak campus will feature four buildings and a 400 MW substation from Oncor that can deliver up to 240 MW of critical IT power with the ability to increase this in Phase 2 for a total of 480 MW across eight buildings. Plans call for the initial phase to be ready for service by the second quarter of 2026.

DataBank stated the facilities built at the Red Oak campus will leverage its Universal Data Hall Design, which will ensure capacity can be quickly deployed to meet the wide-ranging sustainability and performance requirements of all customers including enterprises, hyperscale cloud providers and emerging AI applications that need the highest possible power and cooling density.

DataBank notes Red Oak has become a major submarket in Dallas, attracting the world’s largest cloud and technology providers. DFW9 will be the company’s ninth facility in the Dallas market, where it also has its headquarters.

DataBank completed its third Dallas-area data center, DFW3 in Plano, Texas, in August 2018. That 145,000-square-foot facility has 13.5 MW of critical IT capacity and features more than 72,000 square feet of raised floor space aimed at build-to-suit deployments.

The company currently has more than 65 data centers in more than 27 markets, 20 interconnection hubs and on-ramps to an ecosystem of cloud providers.

DataBank’s expansion across the U.S. has been aided by a $725 million credit facility secured in April. The capital is funding ongoing expansion in existing markets, including campuses in Dallas, Denver, New York, Minneapolis and Salt Lake City. It was supported by a group of 14 digital infrastructure banks, including TD Securities as the administrative agent and joint lead arranger. It came soon after DataBank issued $456 million in secured notes in February. The issuance qualified as a green bond based on the projects being refinanced meeting sustainability criteria for water conservation, carbon emissions reduction and power usage. DataBank’s goal is to be carbon neutral by 2030.

The post DataBank to Build 480 MW Dallas Data Center Campus appeared first on Commercial Property Executive.

Located at the southeast corner of I-75 and Northwest Highway, The Gild features two 20-story towers and two two-story concourse buildings known as The Lofts at the Gild. Together, the structures total nearly 900,000 square feet.

One major change involved the reconfiguration of some of the interior spaces. Highly visible for their distinctive golden color, the buildings now offer more than 100,000 square feet of spec suites ranging in size from 2,000 square feet to 16,000 square feet.

Much of the renovation focused on amenities. Gensler upgraded the entrances to both the North and South Tower, which now include lounges, coffee bars, and grab & go options, as well as the newly opened White Rhino coffee shop and Hightower Café.

READ ALSO: Flex Office Is Becoming Synonymous With Office

The Lofts offer redesigned interiors, featuring social corridors and tenant lounges with both active and quiet zones. These areas include a media room, shuffleboard, table tennis, conference rooms and arcade games. 

The goal of the redesign is to encourage a more people-centric work culture with social spaces created to foster human connection, according to Gensler.

The complex was built in the 1970s, with an original design by Neuhaus & Taylor. The buildings were photogenic enough to be portrayed as the offices of J.R. Ewing nemesis Cliff Barnes on the hit TV show Dallas from 1982 to 1988.

The property has undergone a number of renovations since their original construction. The most recent renovation before the current one was in 2021, when its previous name—the Campbell Centre—was changed to its current name.

Landlords still struggle in tough DFW office market

An emphasis on human connection is an important strategy for office owners in the current tough market, to better to attract and retain tenants. Gallup found that “connected employees” are 68 percent less likely to feel burned out at work and 55 percent less likely to be looking for a job. Happier workers mean, on the whole, less tenant turnover for landlords.

The DFW office market is indeed challenging. Net office absorption in the second quarter of 2024 came in at about a negative 315,600 square feet, according to real estate firm Partners, an improvement from a negative 733,900 square feet a year earlier, but still weak. DFW office vacancy in the second quarter of 2024 was 25.6 percent, up from 24.7 percent a year earlier.

Office continues to be a sluggish sector, a legacy of the pandemic, despite the relatively strong job market. The unemployment rate in DFW was unchanged at 3.8 percent in the second quarter, but with some declines in office-using industries, Partners reported, such as information, and professional and business services.

The post Fenway Wraps $50M Office Revamp appeared first on Commercial Property Executive.

Harbor Capital has entered the Dallas-Fort Worth market with the acquisition of Corbin Industrial Park, a 20-building, 606,911-square-foot industrial campus in Denton, Texas. Mar-Properties sold the portfolio, CommercialEdge data shows.

Argentic Investment Management provided a $38.7 million acquisition loan, according to Denton County public records. The new owner’s investment strategy will include individual and bulk sales of the buildings after a hold period.

Nineteen Blocks served as equity placement partner, while Newmark Capital Markets sourced the debt. Frazier Commercial Real Estate brokered the deal and will continue to oversee the leasing efforts. Additionally, KSR sourced the opportunity for Harbor Capital, while TIG Real Estate Services will handle property management services.

READ ALSO: Are Co-Warehousing Solutions a Game-Changer for Industrial?

The Class B campus came online in two phases—in 2005 and 2014. The buildings average 30,346-square feet in size and have 24-foot maximum clear heights, dock-high loading doors and drive-in doors, as well as 700 parking spaces. The property also provides industrial outdoor storage space.

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.

Nineteen Blocks Managing Partner Michael Lohan and Market Director Luke Burns worked as equity placement partners. Newmark Senior Managing Director Chris McColpin provided debt sourcing services, while KSR Senior Executive Vice President Steven Pollan, Vice President Joseph Kassin and Director Joseph Ash sourced the opportunity.

Frazier Commercial Real Estate Owner Don Frazier and Broker Cole Frazier facilitated the deal.

DFW’s industrial pipeline remains strong

The Metroplex’s industrial pipeline included more than 16.3 million square feet under construction as of July, ranking second nationally, according to a CommercialEdge industrial report. Phoenix was the only metro to surpass Dallas-Fort Worth, with just under 37 million square feet underway.

In May, Crow Holdings Development broke ground on Core30 Logistics Center, a 511,000-square-foot industrial campus in Dallas. The two-building development is expected to come online in the first quarter of next year and will provide cross-dock and front-load services.

One of the largest properties to come online in the Metroplex this year was Stonemont Financial Group’s Sunridge Industrial Park, a 565,259-square-foot Class A facility in Wilmer, Texas. The warehouse broke ground in 2023.

The post Harbor Capital Enters DFW With 607 KSF Buy appeared first on Commercial Property Executive.

Simpson Thacher & Bartlett LLP served as legal counsel, and JLL served as Stonepeak’s financial advisor.

The assets, including Alliance Gateway 61 and Alliance Gateway 53, are in the Alliance submarket of Dallas-Fort Worth, anchored by two Class I rail lines, the BNSF Alliance intermodal terminal and the Fort Worth Alliance cargo airport. All of these have direct access to the I-35 “NAFTA highway” linking Mexico to Canada.

Rail continues to be an attractive transportation means to the country’s center from the west coast, and the Alliance submarket is at the epicenter for tenants who need that mode of transport for goods, Trent Agnew, JLL Capital Markets Industrial co-leader & senior managing director, told Commercial Property Executive.

“Stonepeak has a unique lens into the criticality of infrastructure for these various users and cost/risk implications that should serve them well over time with this investment and others they continue to make,” Agnew said.

READ ALSO: Top 5 Markets for Industrial Deliveries

The Alliance submarket’s transport infrastructure is supported by DFW’s population of over 8 million residents, which is expected to grow by 4x the national average through 2028.“

In April 2024, Stonepeak acquired a 1.7 million square foot logistics portfolio adjacent to Chicago’s BNSF and Union Pacific intermodal terminals. In October 2023, Stonepeak announced the sale of the Omni Industrial Campus, a 1.3 million square foot logistics portfolio near the Port of Charleston in South Carolina.

Blair Robbins, CPA, partner, Audit & Assurance, EisnerAmper LLP, told CPE, “Nearly 90 percent of goods are shipped via ocean freight at some point in their journey, which drives the concentration of warehouse and logistics facilities in these geographical areas.”

“Shipping and transportation rules and regulations are complex. To navigate various aspects of the transportation and logistics process, shippers often utilize drayage, which is freight movement over short distances,” Robbins added.

He said the weight and distribution of freight also play a role in the process. Ports and rail yards may have heavy container corridors around them, and containers will be moved within that corridor to nearby locations to be unloaded or repacked.

READ ALSO: Cracks Show in Port Industrial Markets

Logistics management factors include cost and time to destination. Common factors in logistics management include the ability to leverage lower-cost shipping methods, reduce travel time and easily redeploy the assets once unloaded.

A better location than near ports

Waldo Saville, vice president of North America at Efficio, told CPE the value of owning logistics facilities near railroads and highways is becoming increasingly evident, especially compared to facilities near ports.

“While both types of locations play crucial roles in the supply chain, logistics assets adjacent to railroads and highways offer unique advantages that can lead to stronger performance and greater resilience,” Saville said.

He said facilities near major highways and Class I rail lines, like those in the Alliance submarket of Dallas-Fort Worth, provide critical access to national distribution networks.

“For example, the proximity of Stonepeak’s recent Fort Worth acquisitions to the BNSF Alliance intermodal terminal, the Fort Worth Alliance cargo airport, and direct access to the I-35 NAFTA highway offers efficient connections to both domestic and cross-border trade routes between Mexico and Canada. This infrastructure is especially valuable as it enables faster, more flexible distribution to large regional populations and minimizes impacts from port-based bottlenecks.”

Highways, railroads closer to consumer markets

Unlike portside logistics facilities, which are often the starting point of the supply chain, Saville said inland logistics hubs near highways and railroads are positioned closer to consumer markets.

“This proximity reduces the last-mile delivery time, a key benefit as demand for faster delivery times increases,” he said. “The DFW area, with its population projected to grow four times the national average by 2028, is a prime example of how owning assets in high-growth inland regions can capitalize on increasing local consumer demand.”

Saville said to remember that while ports are vital for global trade, they are also prone to congestion, labor strikes and other disruptions.

“Facilities near railroads and highways offer a diversified logistics strategy that reduces dependency on port operations,” he said. “For example, rail transport is a more cost-effective and environmentally friendly option for moving goods over long distances, mainly when large volumes of goods are transported inland. This makes rail-connected facilities valuable for companies looking to optimize cost structures and mitigate risks associated with port congestion.”

Inland logistics hubs often benefit from lower real estate and operating costs than prime portside locations, Saville added.

“For example, Stonepeak’s investments in assets adjacent to the BNSF and Union Pacific intermodal terminals in Chicago reflect the cost and operational advantages of being close to major rail corridors while avoiding the high competition and cost pressures in port cities,” he said. “These inland locations balance strong transportation links and cost-effective operations.”

Stonepeak’s focus on logistics hubs with strong rail and highway connections highlights its approach to maximizing the value and performance of its real estate portfolio. Positioning assets near key inland transportation hubs can better serve growing consumer markets while benefiting from more flexible and reliable supply chain operations.”

The post Stonepeak Acquires 1 MSF Logistics Portfolio appeared first on Commercial Property Executive.

In a series of successive transactions, Basis Industrial has purchased office and industrial assets totaling 1.1 million square feet throughout Texas and Florida. Beach Point Capital Management provided acquisition financing, while Newmark facilitated the debt sourcing.

The industrial assets—Houston I, DFW II and DFW III—are in the Lone Star State. Basis acquired them from Birtcher Anderson & Davis and COFE Properties. Taurus Investment Holdings sold the office property, a 206,275-square-foot campus in St. Petersburg, Fla.

READ ALSO: Dallas Industrial Investment Sees Surge

The 14 industrial buildings total some 901,200 square feet. Plans call for capital improvements focused on roof and HVAC replacements, as well as drainage and landscape renovations, among others. Tenants include California Fruit Exchange, Francisco & Sons Auto, 1 Dust Group, as well as Ministerios Linaje Escogido and Liturgical Publications, to name a few.

A total of 12 facilities are in the Metroplex, scattered throughout Dallas, Haltom City, Texas, Irving, Addison, Farmers Branch, Carrollton and Fort Worth. The assets are, on average, some 15 miles from the Dallas Fort Worth International Airport, some of them being close to interstates 20, 35W, 35E and 635.

The other two industrial buildings, located in Houston, are roughly 18 miles on average from the Port of Houston and the William P. Hobby Airport. Interstates 69 and 610 are about 4 and 6 miles away, respectively, while Downtown Houston is some 13 miles northeast of the property pair.

Newmark Vice Chairman Stephen Bailey represented the seller of DFW III and Houston I—COFE Properties—and the seller of DFW II, Birtcher Anderson & Davis. Basis Industrial was self-represented by COO & Managing Partner Anthony Scavo.

Basis Industrial doesn’t wait and see

As of September, Basis owned more than 5 million square feet of industrial and self storage space and is expected to close on another 1 million square feet this year. The acquisition of DFW II and III brought the company’s Metroplex portfolio to more than 1 million square feet of shallow-bay, multi-tenant industrial space.

Scavo said, in prepared remarks, that Basis’ goal of growth and expansion is working while other companies are on the sidelines. Last year, the firm acquired and refinanced a six-asset, 1.3 million-square-foot portfolio for a combined total of $220 million. The deal included the purchase of four industrial properties in Florida and Texas.

Dallas-Fort Worth industrial sales soar

Year-to-date through July, investors purchased more than $2.4 billion in industrial assets throughout the Metroplex at a price per square foot of $146, above the national average of $135 per square foot, according to a report by CommercialEdge. The Bay Area was the only market to outshine Dallas-Fort Worth, with a total investment volume of $2.5 billion.

The average asking rents in the metro jumped 7.6 percentage points year-over-year, landing at $6.06 per square foot in July—below the national average of $8.15 per square foot—the same source shows. Dallas-Fort Worth’s vacancy rate stood at 7.1 percent during the same period, slightly above the national average of 6.4 percent.

Meanwhile, the Metroplex’s supply pipeline held more than 16.3 million square feet of under-construction industrial space in July, accounting for 1.7 percent of total stock, the report reveals. Only Phoenix’s pipeline surpassed Dallas-Fort Worth’s, with more than 36.9 million square feet underway.

The post Basis Industrial Closes 1.1 MSF Buying Spree appeared first on Commercial Property Executive.

Cohen Asset Management has acquired the I-30 MacArthur Business Center in an off-market transaction. Lincoln Property Co. previously owned the five-building, 208,743-square-foot industrial park in Grand Prairie, Texas, according to CommercialEdge data.

In 2020, Veritex Community Bank issued a construction loan, the same source shows, and two years later, the industrial campus came online. Buildings 3 and 5 measure 54,293 and 83,561 square feet. Buildings 1, 2 and 4 encompass a total of 70,889 square feet.

Features include 24-foot clear heights, three dock-high, overhead doors, as well as 120-foot truck courts and Class IV fire protection systems. At the time of the transaction, the campus was fully leased to eight national and regional tenants, including Mirella Tile, Cabinet Warehouse and Johnstone Supply.

READ ALSO: Dallas Industrial Investment Sees Surge

Located at 2303, 2403, 2407, 2703 and 2707 E. Interstate 30, the I-30 MacArthur Business Center is some 11 and 22 miles from downtown Dallas and Fort Worth, Texas, respectively. Dallas-Fort Worth International Airport operates roughly 13 miles northwest of the campus, while Interstate 20 is about 10 miles southwest.

Cohen bullish on the DFW industrial market

The company believes the park will benefit from an imbalance between supply and demand, which permeates Class A industrial and logistics properties in prime, infill locations, said Cohen Asset Management Co-CIO Jason Haas in prepared remarks.

Haas also mentioned that the company’s Texas footprint comprised more than 8.5 million square feet of industrial space under management. Last year, the firm acquired two industrial logistics assets in Dallas and Glendale, Ariz. The Texas asset spanned 920,275 square feet.

Cohen’s transactional activity encompasses more than 500 industrial buildings nationally, spanning north of 55 million square feet, as of August 2024. The company traded upward of $5.5 billion.

The roaring Metroplex’s industrial investment scene

Year-to-date through July, investors traded $2.4 billion in industrial assets throughout the Metroplex, according to a recent CommercialEdge report, with the average price per square foot clocking in at $146. The Bay Area was the sole market to outshine Dallas-Fort Worth, with an industrial investment volume of $2.5 billion year-to-date through July.

Another Dallas-Fort Worth industrial deal that closed this summer was DRA Advisors’ acquisition of an eight-asset, 846,261-square-foot infill portfolio in Plano, Texas. New York Life funded the purchase with a $79 million loan.

The post Cohen Asset Management Snaps Up DFW Industrial Campus appeared first on Commercial Property Executive.

Texas Research Quarter, a $4 billion life science innovation district planned for 200 acres in Plano, Texas, has received developmental approval from the Plano City Council with NexPoint as developer and a financial plan for a tax increment financing reinvestment zone. The TIRZ#5 will enable the city to use a portion of the property tax revenues for public infrastructure projects.

NexPoint, a Dallas-based alternative investment firm, is also seeking similar agreements with other local taxing entities, including Collin County and the Plano ISD. The firm noted that these agreements are part of its attempts to establish a public-private partnership that reflects unified support for the innovation district and would provide funding needed to deliver world-class life science facilities and recruit major companies to Plano.

The goal is to secure agreements from the other taxing entities and complete the broader public-private partnership by the fourth quarter. The first phase of construction is expected to begin once those deals are in place.

READ ALSO: Demand for Lab Space Hits 10-Year Low

The TRQ is centered around a 91-acre main campus that previously served as the headquarters for Electronic Data Systems, a technology services company founded in 1962 by H. Ross Perot. NexPoint acquired the site in 2018 and renamed the project the Texas Research Quarter in May 2023, several months after unveiling the district in February 2023 as TxS, which stood for Technology x Science. Company officials said the new moniker reflected the scope and scale of the project.

The proposed project will incorporate 109 additional acres in the Legacy neighborhood and eventually create more than 4 million square feet of life science facilities. More than 3 million square feet of space will be built on the main 91-acre campus and include research and development facilities and cGMP manufacturing facilities designed with flexibility to accommodate a broad range of life science companies.

Multi-phased plans

According to documents filed with the city of Plano, phase one includes the conversion of a significant portion of the main building on the former EDS site and construction of a new pharmaceutical manufacturing facility. Redevelopment of other office buildings, which have all been empty since 2018, will be done in several phases.

“Those phases are planned to include a research hospital, or other marquee feature, which will distinguish the Texas Research Quarter as a significant destination for life sciences organizations. In addition, further lab, scientific research, pharmaceutical, medicinal, manufacturing, residential, hotel, retail and other mixed-use components are planned,” the City Council agenda memo stated.

The undeveloped offsite parcels are expected to house additional life science assets that will either be incorporated into the master plan in subsequent phases or be developed as build-to-suit projects to meet tenant customization or site selection requirements outside of the main campus.

The TRQ main campus is within walking distance of the Shops at Legacy, a mixed-use development with a wide range of amenities including retail, dining, hospitality and entertainment. Under TRQ’s main campus plans, there will also be several acres of green space open to the public to integrate the property into the surrounding area.

New life science hub

Doug McDonald, director of economic development with the city of Plano, said in prepared remarks the development agreement with NexPoint demonstrates the city’s commitment and readiness to help recruit global pharmaceutical companies to Plano. He noted the life science industry is expanding in the region and they expect the Texas Research Quarter will further solidify the Metroplex’s reputation as the ‘Third Coast’ for biotechnology research and manufacturing.

Late last year, Montgomery Street Partners, J. Small Investments and an affiliate of Lyda Hill Philanthropies secured more than $72 million in financing for the $110 million redevelopment of an office property in Dallas into a life science research and development facility.

NexPoint is growing its life science business through TRQ and other ventures. The firm has been involved in several life science deals, including its investment in IQHQ, a science REIT that operates life science clusters on the East and West Coasts. NexPoint also makes direct investments in biotech companies and other public and private health-care businesses through its corporate credits and equities group.

The post NexPoint Moves Forward With $4B DFW Life Science Campus appeared first on Commercial Property Executive.

CanTex Capital has obtained a refinancing loan for Sylvania Industrial Park, an 893,738-square-foot industrial campus in Fort Worth, Texas. JLL worked on behalf of the borrower to secure the three-year, floating-rate financing from MetLife Investment Management.

The firm acquired the multi-tenant asset in November 2021 from Park Corp., according to CommercialEdge information. The company took out a $32 million loan originated by Amherst Capital Management for the acquisition.

The campus, which is the largest crane- and rail-served industrial property in North Texas, came online in 1938, according to CommercialEdge information. Following the purchase, CanTex upgraded the property through multiple capital improvements.

READ ALSO: Investing in Sun Belt Light Industrial Properties

The buildings feature clear heights of up to 50 feet, heavy power, rail access and outdoor storage. The industrial park is leased to 15 companies including TK Airport Solutions, JR New Energy and Andes Coil Processors.

The campus is at 3201 N. Sylvania Ave., just east of Interstate 35W. Downtown Fort Worth is 4 miles away, while Dallas Fort Worth International Airport is 26 miles northeast.

JLL Debt Advisory Senior Managing Director Jim Curtin, Senior Director Jarrod McCabe, Associate Luke Rogers and Analyst Jordan Buck led the team that arranged the financing.

Dallas-Fort Worth’s industrial sector stays strong

The industrial sector of Dallas-Fort Worth remained strong in the first half of the year, according to a CommercialEdge industrial report. The metro’s development pipeline ranked second nationally, with 15.7 million square feet under construction. Additionally, the vacancy rate clocked in at 6.5 percent in June, just 40 basis points above the national average.

In May, Hillwood landed forward financing for Alliance Westport 25, a 1.2 million-square-foot industrial building in Fort Worth, Texas. The facility, part of the 27,000-acre AllianceTexas, came online last year.

The post CanTex Lands Refi for Fort Worth Campus appeared first on Commercial Property Executive.

Holt Lunsford Commercial Investments has obtained $32.7 million for the development of the second phase of Denton Point, public records show. First United Bank provided the five-year loan in a deal brokered by JLL.

Phase Two of the Denton, Texas, industrial campus will comprise 451,856 square feet across Buildings III, IV and V. Holt Lunsford completed the first two facilities, measuring 242,378 square feet, in the second quarter of 2021 and sold them to Westcore in 2023.

Upon delivery, Denton Point III, IV, and V will feature rear-load configurations, 28- to 32-foot clear heights, 114 total dock-high loading doors, 160- to 280-feet bay depths and ample parking. The project will also include the construction of a new public road infrastructure surrounding the development.

READ ALSO: Top 5 Markets for Industrial Deliveries

Building III and IV will have a shared truck court, while Building V will be a freestanding facility that will provide 83 trailer positions or outdoor storage space.

The development, which will carry the addresses 670-710 Masch Branch Road and 4610 Jim Christal Road, will be close to the Denton Enterprise Airport and provide easy access to Interstate 35. Downtown Dallas is some 40 miles away, while Dallas Fort Worth International Airport is less than 30 miles from the location.

The JLL Debt Advisory team consisted of Senior Managing Director Campbell Roche, Senior Directors Will Mogk and Tom Weber, Associate Luke Rogers and Analyst Jordan Buck.

Dallas’ industrial pipeline still ranks high

Dallas-Fort Worth had more than 15.7 million square feet of industrial space under construction at the end of June, ranking second nationally, a CommercialEdge industrial report shows. Phoenix was still in the lead, with 39 million square feet underway. Additionally, the Metroplex’s vacancy rate during the same month clocked in at 6.5 percent, 40 basis points higher than the U.S. average.

In May, Crow Holdings Development started construction on a 511,000-square-foot, two-building campus in Dallas. The 33-acre development is scheduled to come online in the first quarter of next year.

Other notable activities in the metro include Subaru of America’s plan to expand its Dallas Business Center in Coppel, Texas, by 200,000 square feet. Prologis, the owner of the current facility, will construct the build-to-suit expansion.

The post Holt Lunsford Lands Financing for Dallas Project appeared first on Commercial Property Executive.

Bank of America has signed a 10-year, 553,799-square-foot lease renewal at Hallmark Center I in Addison, Texas, for the entire campus. JLL worked on behalf of the tenant, while Stream Realty Partners represented the landlord.

Office Properties Income Trust is the owner of the asset, while The RMR Group is the property manager. The investment bank was the sole tenant of the campus after a sale-leaseback transaction back in 2013. The firm sold the asset for $105 million, according to CommercialEdge information.

Hallmark Center I consists of two buildings, rising two and three stories, that came online in 1977 and 1997. The two-story property features three passenger elevators, about 750 parking spaces and floorplates averaging 140,000 square feet, while the other building has 90,000-square-foot floorplates and roughly 1,470 parking spots.

READ ALSO: Here’s a Surprising Shift in Remote Work’s Appeal

The 35-acre campus is at 16001 N. Dallas Parkway, close to Addison Airport and the city’s downtown. Downtown Dallas is within 16 miles, while DFW International Airport is less than 20 miles away.

Stream Managing Directors Rhett Miller and Matt Wieser represented the RMR Group in the deal. JLL Managing Directors Andy Leatherman and Bret Hefton worked on behalf of the tenant.

Larger office deals are still happening

The current economic climate is still affecting the office sector. As of June, the Metroplex’s vacancy rate stood at 21.8 percent, 430 basis points higher year-over-year and well above the 18.1 percent national average, according to a CommercialEdge office report. Additionally, the metro’s average listing rate as of the same month clocked in at $28.99 per square foot.

However, office leases are still penciling out. In one of the most recent deals, Santander Consumer USA renewed its lease at 1601 Elm St. in Dallas. The firm will continue to occupy 211,087 square feet within the 50-story building.

Other notable activity in the area included Dallas Plastic Surgery Institute’s renewal at The Pyramids at Park Lane South in Dallas. The company will keep its 45,000-square-foot space at Big Sky Medical’s campus.

The post Bank of America Renews 554 KSF Lease appeared first on Commercial Property Executive.

Hillwood will develop and construct an 800,000-square-foot, build-to-suit regional distribution center in Fort Worth, Texas, for DICK’s Sporting Goods.

JLL led the negotiations on behalf of the retailer, while an in-house team represented Hillwood. Stream Realty Partners provides the owner with representative services and oversees the development process.

The project will take shape on an 89.5-acre site inside Hillwood’s Risinger/35 Logistics Park at the intersection of Risinger and Old Burleson roads. GSR designed the project while Westwood provides civil engineering services.

Groundbreaking is scheduled for this fall and completion is anticipated in early 2026. The construction is expected to add some 800 temporary jobs and roughly 300 full-time positions over the next decade, once the facility is online.

READ ALSO: Top 5 Markets for Industrial Deliveries

The facility will include a plethora of sustainable features and initiatives, such as recycled and environment-friendly construction materials, as well as recycling programs for plastics and corrugate. Additionally, high-efficiency lighting and HVAC, as well as energy management systems, are set to be included.

Once finished, the facility will provide support for the sporting company’s distribution efforts, serving more than 100 stores across multiple states. Dick’s choice of location stems from Fort Worth’s business-friendly environment, as well as a qualified workforce, in addition to proximity to the firm’s other Texas facilities.

JLL Executive Managing Director Kris Bjorson and Executive Vice President Jamie Galati, together with Senior Managing Director Blake Rogers, represented DICK’s Sporting Goods.

Hillwood Senior Vice President Reid Goetz alongside Directors Samuel Rhea and Jack Barkley formed the in-house team spearheading the negotiations on behalf of the developer. Stream Realty Partners Executive Managing Director Joe Iatauro and Vice President Patrick Daugherty provided the owner’s representative services.

A glimpse inside Hillwood’s AllianceTexas

Hillwood also owns AllianceTexas, a 27,000-acre, master-planned development including industrial, logistics, office, retail, aviation and multifamily spaces, located in northern Fort Worth.

Earlier this year, Hillwood debuted Alliance Westport 25, a 1.2 million-square-foot industrial property, part of AllianceTexas. Subsequent to the building’s completion, the developer received a seven-year refinancing note from Thrivent Financial. Citizens Bank originated the previous debt in 2022, a $57.4 million construction loan.

Dallas-Fort Worth’s industrial pipeline holds steady

The Metroplex had 15.7 million square feet of industrial space under construction—representing 1.6 percent of stock—as of June, a recent CommercialEdge report shows. Adding space in the planning and permitting stages, the figure rises to 6.1 percent of total existing stock.

By absolute numbers, only Phoenix, at 39 million square feet as of June, had a larger pipeline than Dallas-Fort Worth. The Metroplex surpassed Kansas City, Mo. (13.2 million), Atlanta (10.9 million) and Chicago (10.3 million).  

Earlier this year, Crow Holdings Development contributed to Dallas-Fort Worth’s industrial pipeline by breaking ground on Core30 Logistics Center, a 511,000-square-foot, two-building development in Dallas. Completion is estimated in 2025’s first quarter.

The post DICK’s Sporting Goods Eyes 800 KSF Fort Worth Hub appeared first on Commercial Property Executive.

A fund sponsored by CBRE Investment Management has acquired the first phase of McKinney National Business Park, a three-building, 481,000-square-foot group of Class A logistics properties in metro Dallas–Fort Worth.

The seller was the project’s developer, Transwestern Development Co., and the buyer was the CBRE Strategic Partners U.S. Value 9 fund. Newmark facilitated the transaction.

The three buildings were fully leased to five tenants at the time of sale, the roster being focused on local fulfillment distribution. The facilities feature 125 dock-high doors, ESFR sprinklers and LED lighting.

READ ALSO: Industrial Development Pipeline Shrinks

The park’s Phase One, at 1001 Harry McKillop Blvd. in McKinney, Texas, came online in 2022, according to CommercialEdge, after ground was broken in December 2021. The 64-acre McKinney National Business Park was designed to comprise five buildings totaling 945,500 square feet and be developed in two phases east of U.S. Route 75.

“The U.S. Route 75 corridor north of McKinney is experiencing a significant uptick in semiconductor and other manufacturing activities,” Topper Sheehy, senior director of logistics transactions for CBRE IM, told Commercial Property Executive.

He added that their strategy is “to focus on areas of population growth with strong labor and consumer demographics, coupled with manufacturing tailwinds. The combination of these three factors will benefit McKinney National Business Park.”

Creeping vacancies

Industrial absorption in the Metroplex totaled nearly 6.9 million square feet in the second quarter, according to a recent report from CBRE. Deliveries in the quarter added up to almost 8.6 million square feet, and only about 12 percent of that was preleased. As a result, overall vacancy crept up by 30 basis points to 9.8 percent.

CBRE commented, “there was a significant amount of under construction starts (14.3 million square feet) most of which are not preleased.”

In late June, Logistics Property Co. landed a full-building, 550,000-square-foot tenant, a Specialty Building Products brand, at its Southern Star Logistics Park in Midlothian, Texas, near Dallas. The lease also covers 25 acres of adjoining outdoor storage. CBRE represented the ownership, while Cresa represented the tenant.

The post CBRE IM Buys Dallas-Fort Worth Logistics Trio appeared first on Commercial Property Executive.

While some metrics are still affected by postpandemic challenges, including the vacancy rate which rose 430 basis points year-over-year, Dallas is still a hotspot for investors, albeit at a slower pace. Six office properties came online in the first half of this year, marking a 49.2 percent decrease when compared to the same interval of 2023.

However, infrastructure projects such as the DART Silver Line, a 26-mile commuter rail project connecting Plano to the Dallas-Fort Worth International Airport that is scheduled for completion by early 2026, only enhance the metro’s appeal.

Second-largest development pipeline nationwide

In the first half of the year, the Metroplex’s office sector had almost 5 million square feet of office space under construction, accounting for 1.8 percent of existing stock—above the 1.1 percent U.S. average. The market ranked second nationally, being surpassed only by Boston (12.5 million square feet) and followed by Austin (4.3 million square feet), San Diego (3.9 million square feet) and the Bay Area (2.4 million square feet).

When factoring in projects in planning stages, Dallas’ office development pipeline stood at 12.1 percent of stock, more than triple the national average. Austin (14.8 percent) was the only market to surpass the Metroplex, while Houston (1.9 percent) and San Diego (6.7 percent) were far behind.

During the same period, 18 office projects expected to measure roughly 1.1 million square feet broke ground in the market. This represents almost 9.0 percent of the total developments that started construction across the country in the same interval.

In April, a joint venture between Pacific Elm Properties and KDC obtained $290 million in construction financing for the development of Parkside Uptown in Dallas. The 500,000-square-foot project broke ground last year and is scheduled for completion in 2027.

A month earlier, KDC topped out Wells Fargo’s office campus in Irving, Texas, dubbed Project Falcon. Set to measure 850,000 square feet, the two-building project will come online by the end of next year.

Completions nearly halved in H1

The Metroplex’s office sector saw six buildings coming online in the first half of this year, which added roughly 821,000 square feet to its inventory—0.2 percent of total market stock. Nonetheless, this marks a 49.2 percent decrease year-over-year, in line with ongoing commercial real estate trends.

Dallas-Fort Worth fared better than Phoenix (478,494 square feet), Los Angeles (483,175 square feet) and Miami (249,138 square feet). However, southwestern markets Austin (921,403 square feet) and Houston (1.3 million square feet) surpassed the metro.

In May, Stream Realty Partners completed and opened The QUAD in Uptown Dallas, a 12-story building. The 345,425-square-foot mid-rise is the first property in Dallas to achieve both WiredScore and SmartScore Platinum ratings.

Earlier this year, Crow Holdings delivered The Offices at Southstone Yards, the first mass-timber office building in North Texas. Located in Frisco, the seven-story property comprises some 242,000 square feet and is the first phase of a larger development.

Strong sales activity, despite low prices

Dallas-Fort Worth’s transaction volume in the first half of the year stood at $510 million. Assets traded at an average of $127 per square foot, considerably below the $172 national figure.

Prices in the metro also lagged those recorded in markets such as Austin ($439 per square foot), the Bay Area ($260 per square foot) and Phoenix ($167 per square foot), but surpassed the ones in Chicago ($89 per square foot) and Philadelphia ($94 per square foot).

In March, Triumph Financial purchased One Lincoln Park, a 257,000-square-foot property in Dallas, for $54 million—about $210 per square foot. The company acquired the asset from Piedmont Office Realty Trust and rebranded it as One Triumph Place.

A month earlier, Franklin Street Properties sold Collins Crossing, a 300,887-square-foot office building in Richardson, Texas. Goldenrod Cos. and Reserve Capital Partners acquired the asset, as well as an adjacent 3.6-acre parcel, where the duo plans to construct a mixed-use development.

Higher vacancy rates and asking rents

The Metroplex’s office sector registered a vacancy rate of 21.8 percent as of June, up 430 basis points year-over-year and well above the 18.1 percent U.S. average. Miami (12.0 precent) posted the lowest rate nationally, while markets such as Houston (23.8 percent) and San Francisco (25.4 percent) were on the other side of the spectrum.

In March, Granite Properties and Highwoods Properties signed a 118,484-square-foot leasing agreement at their 23Springs project in Dallas. Global law firm Sidley Austin LLP will occupy four and a half floors at the building, which is underway and expected to come online next spring.

The same month, Dallas Plastic Surgery Institute renewed its lease at The Pyramids at Park Lane South Tower, a 145,365-square-foot medical office building in the North Dallas neighborhood. The entity will continue to occupy 45,000 square feet at the six-story property.

Listing rates in the metro as of June stood at $28.99 per square foot, marking a 6.7 percent increase over the year, but remaining below the $31.67 national average. Peer markets such as the Bay Area ($53.28 per square foot) and Atlanta ($32.02 per square foot) performed better.

Dallas sees new coworking spaces

Dallas-Fort Worth’s shared space inventory at the end of June totaled roughly 5.4 million square feet across 271 locations. This accounted for 1.9 percent of the metro’s total rentable office space, slightly above the 1.8 percent national average.

The market surpassed Houston (1.7 percent), the Bay Area (1.2 percent) and Phoenix (1.7 percent), but lagged Atlanta (2.1 percent) and Denver (2.2 percent). Regus had the largest share of coworking space in the Metroplex, with 620,315 square feet, followed by Executive Workspace with 442,625 square feet.

Last month, Workbox entered the Dallas-Fort Worth market and opened a 50,000-square-foot coworking space at Asana Partners’ Victory Plaza. That space was previously occupied by WeWork, before it failed to renegotiate the leasing terms following its Chapter 11 exit.

The post The Metroplex’s Office Sector Holds Steady appeared first on Commercial Property Executive.

Westdale Properties America has received a $115 million senior loan for three Texas properties. The note encumbers two office buildings, The Epic I in Dallas and The Colonnade in San Antonio, along with The Woodmeade, a 304-unit multifamily property in Irving.

Reznik Paz Nevo Trusts provided the 5-year, fixed-rate financing, according to CommercialEdge information. Amir Giryes, the founder of Giryes Capital Group and managing partner of Pando Cos., arranged the transaction.

Office loan defaults and delinquencies are on the rise, according to a recent CommercialEdge report. More than $260 billion in office loans have matured recently or will mature by the end of 2026, affecting over 12,000 properties. Some $164.5 billion (62.6 percent) are in urban submarkets, while $187.7 billion (71.4 percent percent) involve Class A buildings. 

Two Texas office buildings

Totaling 282,873 square feet, The Epic I is at 2555 Pacific Ave. in an Opportunity Zone in Dallas’ Deep Ellum. Completed in 2019, the 16-story, Class A building includes 18,000 square feet of retail space and seven levels of parking. Amenities at the LEED Gold-certified property include a fitness center, a conference center, a roof deck, a café, five passenger elevators, on-site bike locker and controlled access.

Westdale broke ground on The Epic, a mixed-use property that also includes a residential tower and a boutique hotel, in 2017. The developer financed the project’s construction with a $160 million note also provided by Reznik Paz Nevo Trusts, CommercialEdge shows.

As for The Colonnade, Westdale purchased it back in 2012 from Griffin Partners. The 168,255-square-foot office building came online in 1983, featuring 19,260-square-foot floorplates, four passenger elevators, controlled access and on-site security. The Colonnade is located at 9901 Interstate 10 in San Antonio, near a variety of retail, lodging and dining options.

The post Westdale Properties Gets $115M for Texas Assets appeared first on Commercial Property Executive.

Cooper & Scully has renewed its 47,900-square-foot commitment at Charter Holdings’ Founders Square, a historic 274,010-square-foot office building in downtown Dallas. The litigation firm has the largest footprint and has been a part of the roster since 2013.

Stream Realty Partners, which was recently appointed as exclusive leasing broker and manager of the building, and CBRE handled the renewal proceedings on behalf of the landlord and law firm, respectively.

The 1914-built property debuted as a warehouse for the Higginbotham-Bailey-Logan Co. dry goods company. In 1984, it was converted into an office building. Charter Holdings purchased the asset last year from Fidelity Commercial, a Taiwanese investment firm.

READ ALSO: Office Visits Continue to Improve

The seven-story Founders Square features 35,500-square-foot floorplates, a skylit atrium-style lobby, an on-site deli, a conferencing facility, as well as a newly renovated garage providing the highest parking ratio in Dallas’ Central Business District. Charter plans to further renovate and upgrade the building.

Located at 900 Jackson St., the property is within walking distance of several parks, quick-service restaurants and transit stops. The Metroplex’s Giant Eyeball watches over the mid-rise from less than 1 mile away.  

Stream Realty Partners Managing Director Rhett Miller and Associate Sam Bass represented Charter Holdings, while CBRE Executive Vice President John Ellerman and Vice Chairman Jeff Ellerman led the negotiations on behalf of Cooper & Scully.

Class A office space is in high demand

At the end of 2024’s second quarter, Dallas-Fort Worth’s office vacancy rate rose by 60 basis points quarter-over-quarter and landed at 22.0 percent, according to a report by Cushman & Wakefield. The report partially attributes this increase to several speculative projects that debuted this quarter.

Two such developments are Stream Realty Partner’s The Quad, a 12-story office building in Dallas, as well as The Tower at Hall Park, a AAA office tower in Frisco, Texas, part of Hall’s $7 billion master plan. The pair of properties total 732,371 square feet and were 16.9 percent leased upon delivery.

Net absorption totaled negative 950,409 square feet during the second quarter and negative 3 million square feet year-to-date through June. However, the flight-to-quality trend drove demand for prime office space in Class A properties, as 1.3 million square feet of leases were inked in the second quarter—65.1 percent of all leasing activity.

Another Dallas office lease renewal took place earlier this month. Santander renewed its 211,087-square-foot lease at Pacific Elm Properties’ 1601 Elm St., a 1.4 million-square-foot mixed-use tower.

The post Law Firm Renews Downtown Dallas Office Lease appeared first on Commercial Property Executive.

Barings has sold Cooper I-20 Building C, a 401,115-square-foot industrial facility in Arlington, Texas. Transwestern Investment Group acquired the asset with the help of a $23 million, five-year loan originated by Jackson National Life Insurance Co., according to CommercialEdge information.

Cushman & Wakefield brokered the transaction on behalf of the seller and arranged the acquisition financing.

The Class A warehouse came online in 2020 and is part of the Cooper I-20 campus, measuring 1.2 million square feet across three facilities. The two other properties were sold in 2019 in a portfolio transaction to Nuveen Real Estate, the same source shows.

READ ALSO: Cracks Show in Port Industrial Markets

The bulk distribution center features 36-foot clear heights, 92 dock-high loading doors, 45 trailer stalls and four drive-in doors, as well as dock levelers and bumpers. The building also has 52- by 60-foot bay spacing and more than 250 parking spaces.

Located at 1131 W. Bardin Road, the almost 22-acre property is some 6 miles from downtown Arlington and 16 miles from Fort Worth’s central business district, while DFW International Airport is within 19 miles northeast.

In 2021, Pregis leased 265,000 square feet within the building. The company is using the space to produce a type of mailer, according to a press release issued at the time.

Cushman & Wakefield Vice Chair Jim Carpenter, Executive Managing Directors Jud Clements, Mark Collins and David Eseke, along with Managing Director Robby Rieke, Financial Analyst Trevor Berry and Director Madeleine Supplee represented Barings in the sale. Vice Chair John Alascio, Senior Director TJ Sullivan and Senior Associate Meredith Donovan arranged the acquisition financing.

Strong transaction activity in Dallas

The Metroplex’s industrial sales volume reached $2 billion year-to-date through June, according to the latest CommercialEdge industrial report. The market ranked second nationally, surpassed only by The Bay Area, which took the lead with almost $2.3 billion. Properties changed hands for $152 per square foot on average.

Last month, DRA Advisors acquired an eight-building industrial portfolio in Plano, Texas, totaling 846,261 square feet. The buyer backed the purchase with a $79 million loan.

Earlier this year, Forefront Commercial Real Estate bought North Dallas Infill Portfolio, totaling 627,303 square feet across four facilities. AEW Capital management sold the assets.

The post Transwestern Buys 401 KSF Facility Near Dallas appeared first on Commercial Property Executive.

TXRE Properties has acquired Churchill Tower, a 277,187-square-foot office building in Dallas. American National Insurance Co. was the previous owner, according to CommercialEdge data.

A JLL team worked on behalf of the seller, while an in-house team represented the buyer. The Class A mid-rise was 73 percent leased at the time of sale, with tenants including Carr, Riggs and Ingram, Borden and Relation and Level Four Advisory.

The asset previously traded in 2003, when the insurance company purchased it from Today Realty Advisors, CommercialEdge shows. Completed on some 3 acres 25 years ago, the property is still the newest office building in the Park Central submarket by approximately 12 years.

READ ALSO: Office Debt – The Underwater Mountain

Churchill Tower rises 12 stories and was recently renovated. Amenities comprise a conference room, fitness center and café, as well as 19,000 square feet of first-floor retail space and more than 1,000 parking spaces. The building also boasts floorplates averaging 22,500 square feet and five passenger elevators.

The mid-rise is at 12400 Coit Road, some 10 miles northeast of downtown Dallas. The DFW International Airport is within 20 miles.

JLL Capital Markets Senior Managing Director Todd Savage, Director Ben Esterer, Associate Megan Babovec and Analyst Andrew Griffin worked on behalf of the seller. TXRE Properties Founding Partner Justin Smith and Vice President Kolby Dickerson represented themselves in the deal.

Strong sales activity in The Metroplex

The Metroplex’s office sales volume stood at $510 million year-to-date as of June—ranking sixth nationally—according to a recent CommercialEdge report. Assets in the metro traded for an average of $127, well behind the $172 national figure.

In March, Piedmont Office Realty Trust sold One Lincoln Park for $54 million. Triumph Financial acquired the 257.000-square-foot, Dallas asset for $210 per square foot and rebranded it as One Triumph Place.

A month earlier, Franklin Street Properties sold Collins Crossing, a 300,887-square-foot building in Richardson, Texas. Goldenrod Cos. and Reserve Capital Partners purchased the property.

The post American National Sells Dallas Office Asset appeared first on Commercial Property Executive.

Hithium Tech USA Inc. has plans for a 483,874-square-foot battery module and system assembly facility in Mesquite, Texas, a Dallas-Fort Worth submarket. This will be the company’s first production facility in North America.

The Xiamen Hithium Energy Storage Technology Co. subsidiary intends to invest about $100 million in this project.

Expected to come online in 2029, the plant will have an annual capacity of 10 GWh. The new project will accelerate the company’s development and production of energy storage system products for the U.S. market.

READ ALSO: Dallas Industrial Investment Sees Surge

The facility will be part of Stream Realty Partners’ 20 East Trinity Pointe, an industrial campus totaling 284 acres. Hithium is the first company to lease space within the park and will serve as the property’s anchor tenant.

The plant will occupy the park’s Building 5. Completed last year, the facility features a 40-foot clear height, 73 dock doors and fours drive-in ramps. The property also includes 328 car parking spaces and 101 trailer parking spots.

Stream broke ground on Trinity Pointe in 2022. The two-phase campus is expected to comprise up to 3.4 million square feet at full build-out.

The industrial park is at 12955 FM 2932, off Interstate 20, providing easy access to interstates 635, 30, 35 and 45. Downtown Dallas is some 25 miles away, while Dallas-Fort Worth International Airport is roughly 45 miles away.

Dallas’ pipeline leads nationally

The Metroplex had the largest development pipeline in the U.S. as of May, totaling more than 17.3 million square feet, according to the latest CommercialEdge industrial report. However, the amount witnessed a nearly 70 percent decrease year-over-year, as 53.7 million square feet were underway in May 2023.

One of the current developments is Core30 Logistics Center, a 511,000-square-foot industrial campus in Dallas. The two-building campus developed by Crow Holdings is scheduled to come online in the first quarter of next year.

The post Hithium Eyes 1st North America Battery Plant appeared first on Commercial Property Executive.

Dallas has been one of the most active markets for industrial sales this year, despite the industry slowdown, reaching a total transaction volume of more than $1.6 billion year-to-date through May.

Sales activity in the Metroplex was also fueled by the cold storage sector, establishing it as a hub for refrigerated warehouses. Since the start of 2022, a total of 3.7 million square feet of cold storage space have been delivered, a milestone no other market has come even close to, according to CommercialEdge data. The metro’s cold storage market is expected to continue its expansion in the coming years, mainly due to its central location in the country.

Dallas industrial sales volume, high

Industrial sales totaled north of $1.6 billion year-to-date through May in the Metroplex, with properties trading at an average of $152 per square foot, according to CommercialEdge data. The sale price was higher than the $142 national average but was outpaced by markets such as the Inland Empire ($216 per square foot) and New Jersey ($272 per square foot).

One of the major recent transactions involved an eight-building, 846,261-square-foot infill industrial portfolio in Plano. DRA Advisors purchased the ensemble, while New York Life provided $79 million in acquisition financing.

Urban Logistics Realty has also recently sold Urban District 35, a 440,663-square-foot industrial park in Denton. High Street Logistics Properties acquired the four-building asset for $21.5 million, backed by a loan from The Hartford Financial Services Group.

New industrial inventory to come online

At the end of May, Dallas had 16.3 million square feet of industrial space under construction across 81 properties. The pipeline accounted for 1.7 percent of existing stock—below the national average of 1.9 percent.

In the first five months of 2024, approximately 4.3 million square feet of industrial space broke ground in Dallas across 23 properties, representing 0.5 percent of the total stock. The index was higher than the national average of 0.3 percent.

Capstar Real Estate Advisors recently broke ground on a 756,668-square-foot industrial project in Mesquite. The developer already fully preleased the warehouse—which is scheduled for completion in early 2025—to Canadian Solar.

Crow Holdings Development also started construction on Core30 Logistics Center, a 511,000-square-foot, two-building industrial campus in Dallas. The property is set to include a 300,347-square-foot, cross-dock facility and a 210,653-square-foot front-load building. 

Year-to-date through May, the Dallas industrial market recorded 17.9 million square feet of industrial space delivered across 54 properties, representing 1.8 percent of the total stock. The metro was on par with the Inland Empire, where 17.4 million square feet came online accounting for 2.6 percent of total stock. Both figures were significantly higher than the national average of 0.9 percent.

In May, Hillwood delivered Alliance Westport 25, a 1.2 million-square-foot industrial building in Fort Worth. The facility is part of the 27,000-acre master-planned community of AllianceTexas. The developer recently obtained forward financing for the property. The new loan refinanced the development’s existing debt, a $57.4 million construction note originated by Citizens Bank.

Lovett Industrial has completed the construction of Trinity West Business Park’s Building II, a 763,960-square-foot, cross-dock facility in Dallas. The developer broke ground on the project in 2023 within Trinity Park West, a 140-acre industrial campus that will bring approximately 2 million square feet to the area.

Lower vacancy than the national average

Dallas-Fort Worth’s vacancy rate clocked in at 5.3 percent in May, lower than the national average of 5.6 percent, CommercialEdge data shows.

Similar vacancy rates were reported in markets such as Atlanta (5.6 percent) and New Jersey (5.7 percent). Phoenix’s rate reached 4.7 percent, on par with Indianapolis (4.7 percent) and Chicago (4.9 percent), all below the national figure.

U.S. Lumber Group recently signed a full-building, 550,000-square-foot lease at Logistics Property Co.’s Southern Star Logistics Park in Midlothian. The agreement also included 25 acres of adjacent outdoor storage land, along with dual rail service.

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Santander Consumer USA has renewed its 211,087-square-foot office lease at 1601 Elm St., a 50-story, 1.4 million-square-foot mixed-use tower in Dallas. Owned by Pacific Elm Properties, a subsidiary of Woods Capital, the property has been called Santander Tower since 2020.

Cushman & Wakefield represented the tenant, while Pacific Elm Properties had in-house representation.

This deal marks the largest office lease renewal year-to-date in Dallas, as well as the biggest renewal in downtown Dallas in the past five years, according to Cushman & Wakefield. As part of the agreement, Santander gets to keep its naming rights.

READ ALSO: Sizing Up the Prime Office Building Landscape

The property encompasses 28,400-square-foot floor plates featuring 12-foot 6-inch ceiling heights. According to the U.S. Green Building Council website, Santander Tower is currently in the process of receiving a LEED certification.

Santander Tower also includes a 60-key hotel and a 290-unit multifamily community. Amenities include a gym, ground-floor eateries and a private dining club on the 48th floor.

Located in downtown Dallas, the building is proximate to numerous transit stops, parks, quick-service restaurants and retail options. Less than 1 mile away, Pacific Elm and KDC will build Parkside Uptown, a 500,000-square-foot office project. In April, the venture landed a $290 million construction loan issued by Goldman Sachs Alternatives.

Cushman & Wakefield Vice Chair Robbie Baty and Executive Director Travis Boothe represented the tenant in the lease renewal proceedings. Pacific Elm Properties Chief Marketing Officer & Executive Vice President Sara Terry alongside Vice President Reegan Busby represented the landlord.

Adaptive reuse projects at Santander Tower

In 2013, Woods Capital purchased the 1981-built asset for $57.4 million from Commercial Mortgage, CommercialEdge data shows. Renovations began in 2017, when the ground floor was remodeled to include some 16,000 square feet of retail space, which is currently occupied by two restaurants.

The refurbishments also involved the replacement of dark granite and marble with white stonework and tile, as well as the addition of clear glass. Later in 2020, two adaptive reuse projects kicked off at Santander Tower.

The first was an office-to-hotel conversion which included the property’s 49th and 50th floors. The Guild Hotels, an Austin, Texas-based hospitality company, leased the 60,000-square-foot space and partook in the conversion.

This marked the firm’s first office adaptive reuse, according to The Guild’s co-founder Brian Carrico, as reported by The Dallas Morning News. Mint House Hotel currently operates the space.

Three years later, the owner debuted Peridot Residences, a 290-unit luxury multifamily community located between the 18th and 25th floors, as well as 37th and 39th floors. The office-to-residential conversion was co-developed alongside Mintwood Real Estate.

The Metroplex’s office vacancy rises

According to a recent CommercialEdge report, Dallas-Fort Worth’s office vacancy rate was 21.6 percent as of May, spiking by 450 basis points year-over-year and 190 basis points year-to-date.  Meanwhile, the national vacancy rate stood at 17.8 percent, up 80 basis points over the year, but down 20 basis points since January.

Earlier this year, Sidley Austin inked a 118,484-square-foot lease at an upcoming office development in Uptown Dallas. Developed by Granite Properties and Highwoods Properties, 23Springs rises 26 stories. The 626,215-square-foot tower is slated for delivery in 2025.

Another Metroplex agreement closed between Property Advisers Realty, the owner of a 288,000-square foot Class A office tower named The Madison, and CheckSammy. The waste and sustainability operator inked a 45,098-square-foot expansion and extension lease at the Addison, Texas, property.

The post Santander Renews 211 KSF Lease in Downtown Dallas appeared first on Commercial Property Executive.

Manulife Investment Management has launched a joint venture with Foundry Commercial to purchase, develop and lease industrial outdoor storage in across infill industrial markets in the Southeast.

The joint venture plans to operate a portfolio consisting of 10 sites, located in Nashville, Tenn., Atlanta, Jacksonville, Fla., and Dallas Fort-Worth. Manulife has already acquired three of the sites that have completed construction, while the remaining will be developed together with Foundry.

Manulife has $19.2 billion worth of assets under management and more than 84.6 million square feet of commercial real estate on a global scale, while Foundry currently has $2.7 billion in assets under management.

The decision to invest in this niche got a boost from the reduction in capital costs compared to industrial properties in general, which also brings opportunities unavailable to the general marketplace, said Foundry Commercial Principal Rick Coe in a prepared statement.

A sought-after industrial niche

Despite being a small, rather untapped industrial niche, IOS is attracting a significant number of investors looking to branch out and diversify.

In early January, Alterra IOS partnered with ConGlobal Industries to acquire four IOS properties totaling nearly 90 acres. The assets are located in areas with dense IOS clusters, near port and rail infrastructure.

More recently, Triten Real Estate and TPG Angelo Gordon announced plans to acquire more than $1 billion in additional industrial outdoor storage assets over the next five years. The joint venture initially launched their investment platform in 2020 and have since purchased more than $500 million of IOS assets across 16 markets.

The post Manulife, Foundry Launch Industrial Outdoor Storage JV appeared first on Commercial Property Executive.

DW Distribution has signed a full-building, 550,000-square-foot lease at Logistics Property Co.’s Southern Star Logistics Park in Midlothian, Texas. The agreement also included 25 acres of adjacent outdoor storage land, as well as dual rail service.

CBRE assisted the owner while Cresa represented the tenant, a Specialty Building Products brand.

Concurrently, LPC renegotiated financing conditions with the facility’s lender, Veritex Community Bank. The new contract extended the initial loan maturity and added a new lender—American National Bank of Texas.

Veritex had issued a $21 million construction note in 2021, CommercialEdge data shows. Public records indicate that the lender agreed to extend the maturity until May 2027 with two additional one-year extension options.

READ ALSO: Staying Busy When Industrial Momentum Hits the Brakes

In prepared remarks, LPC Vice President Max Mueller noted that DW chose Southern Star Logistics Park for its rail services and heavy power, both required for the distribution of specialty building materials.

The speculative, 548,340-square-foot warehouse features 36-foot clear heights, 185-foot truck courts, 60-foot speed bays, 96 dock doors, eight 40,000-pound mechanical pit levelers and 2,623 square feet of office space, as well as 136 trailer and 216 car parking spots. Furthermore, LPC plans to expand the property with a build-to-suit, 582,400-square-foot facility.

Completed in 2022 at 3210 Railport Parkway, Southern Star Logistics Park is less than 1 mile from U.S. Route 67, with downtown Midlothian and Dallas being 7 and 29 miles northeast, respectively. The 45-acre property is serviced by BNSF Railway and the Union Pacific Railroad.

The facility is also some 32 miles from Logistics Property Co.’s Southport Logistics Park, a 252-acre industrial campus in Wilmer, Texas. Last year, Nike inked a 1-million-square-foot lease, occupying the campus’ entire Building Three.

CBRE Executive Vice Presidents Kacy Jones, Stephen Koldyke and Brian Gilchrist assisted Logistics Property Co. Vice Presidents J.C. Hay and Max Mueller in the lease proceedings. Cresa Managing Principals Jim Hazard, David Stack and Barrett Bufkin represented the tenant.

Metroplex’s industrial vacancy and advertised rates

The Metroplex’s industrial vacancy rate stood at 3.9 percent in April, below the national average of 5.2 percent, according to a recent CommercialEdge report. A few metros fared better, such as Columbus, Ohio (2.7 percent), Kansas City, Mo. (3 percent), and Nashville, Tenn. (3.6 percent), to name a few.

Year-over-year through April, the advertised industrial rates grew by 6.7 percent in Dallas-Fort Worth, lagging 70 basis points behind the national average increase of 7.4 percent during the same interval, the report goes on to show.

The post Logistics Property Co. Signs 550 KSF Tenant Near Dallas appeared first on Commercial Property Executive.

A joint venture of M2G Ventures and Pennybacker Capital has sold PROTO Park, a 250,108-square-foot Class A industrial campus in Dallas. California-based The Bendetti Co. bought the asset. Newmark brokered the deal on behalf of the seller.

A fund managed by Bridge Investment Group provided the buyer with an acquisition loan, according to CommercialEdge.

Pennybacker Capital picked up the two-building industrial asset in September 2020 and partnered with M2G Ventures a year later for its redevelopment.

PROTO PARK is at 3200 Irving Blvd. in West Dallas. It features 24-foot clear heights, upgraded skylights and lighting, front and side loading options with new dock levelers and bumpers, more than 20 dock doors, two drive-in doors and a total of 172 vehicle parking spots. The redevelopment project at PROTO Park was completed during the fourth quarter of 2021.

Tenants Morrison Supply, Preziosa Stone, Dynasty Distilling, Taxila Stone and an undisclosed international aviation group fully occupy the asset. Stream Realty Partners is the leasing broker.

PROTO Park is a 9-acre industrial property within the West Brookhollow submarket. It is 4 miles from Dallas Love Field, 6 miles from downtown Dallas, 14 miles from Dallas-Fort Worth International Airport and within 30 miles of Fort Worth, Texas. Nearby major thoroughfares include Interstate 35 and U.S. State Highways 183 and 114.

Newmark Vice Chairmen Dustin Volz and Stephen Bailey, Senior Managing Director Dom Espinosa, Managing Director Zach Riebe, Transaction Manager Caroline Wilson and Analyst Travis McEldowney negotiated on behalf of the joint venture.

Metroplex industrial investment remains on top

Dallas-Fort Worth investors traded more than $1 billion in industrial assets year-to-date through April, according to a recent CommercialEdge report. The metro ranked third nationwide, with The Bay Area leading the rankings ($2.2 billion) and Los Angeles ($1.4 billion) in the second spot.

Earlier this month, DRA Advisors acquired an eight-building portfolio in Plano, Texas. Link Logistics sold the fully leased, 846,261-square-foot infill property.

The post M2G, Pennybacker Sell Fully Leased Dallas Industrial Park appeared first on Commercial Property Executive.

DRA Advisors has purchased an eight-building, 846,261-square-foot infill industrial portfolio in Plano, Texas. New York Life provided $79 million in acquisition financing, public records show.

Link Logistics sold the Metroplex properties, according to CommercialEdge information, in a transaction arranged by Cushman & Wakefield.

At the time of the sale, the portfolio was fully leased to 15 firms, their tenure averaging 10 years. Tenants include Samsung, Unicom Engineering and Beckett, to name a few.

READ ALSO: How Will the Manufacturing Investment Boom Impact Industrial CRE?

The eight buildings and respective square footages are as follows:

• 3601 E. Plano Parkway, 210,560 square feet
• 3101 Summit Ave., 140,593 square feet
• 2700 Summit Ave., 120,276 square feet
• 1100 Klein Road, 104,104 square feet
• 3501 E. Plano Parkway, 82,880 square feet
• 3301 E. Plano Parkway, 70,880 square feet
• 2801 E. Plano Parkway, 65,135 square feet
• 2701 E. Plano Parkway, 53,833 square feet

Completed between 1997 and 2000, the facilities have clear heights ranging from 19 to 28 feet. The buildings are some 3 miles northeast of President Bush Turnpike and west of U.S. Route 75. Downtown Dallas is some 20 miles southwest.

Cushman & Wakefield Vice Chair James Carpenter, Executive Managing Director Jud Clements and Analyst Trevor Berry, alongside Directors Robby Rieke and Madeleine Supplee, represented Link Logistics.

DRA’s drive for industrial assets

In February, DRA Advisors closed its 11th Growth and Income Fund at nearly $2.3 billion—the largest to date. The investment vehicle targets value-add opportunities in the industrial, retail, multifamily, office and life sciences sectors.

One month prior, the company entered a joint venture with Rising Realty Partners for the purchase a six-building, 531,000-square-foot industrial portfolio in California’s Central Valley.

Last year, DRA joined forces with George Urban Advisors and Five Horizons Partners to acquire a seven-property, 851,131-square-foot industrial portfolio in Southern California. Link Logistics sold that collection as well, for $263 million.

DRA’s funds currently own 598 properties across 39 states. Of the total, 423 assets amounting to more than 60 million square feet are industrial facilities.

Dallas-Fort Worth’s industrial upswing

Year-to-date through April, investors closed more than $1 billion in industrial transactions across the Metroplex, marking it as one of the most active markets, according to a CommercialEdge report. The metro was surpassed only by Los Angeles ($1.4 billion) and the Bay Area ($2.2 billion).

Dallas-Fort Worth’s vacancy rate clocked in at 3.9 percent in April, well below the national average of 5.2 percent. Meanwhile, the Metroplex’s rent growth year-over-year landed at 6.7 percent, 70 basis points less than the U.S. average.

The post DRA Advisors Buys Dallas Industrial Portfolio appeared first on Commercial Property Executive.

Marking its first Dallas-Fort Worth endeavor and ninth location nationwide, Workbox has opened a coworking space in downtown Dallas inside Victory Park, a $3 billion master-planned development.

The Chicago-based firm leased more than 50,000 square feet at Asana Partners’ Victory Plaza, a 230,000-square-foot office campus. The space’s full completion is expected this month.

WeWork previously occupied that coworking location but failed to renegotiate the leasing terms following its Chapter 11 exit. The firm rejected the lease on May 20, as reported by Bisnow.

Victory Plaza, up close

Completed in 2006, Victory Plaza encompasses 185,000 square feet of office space and nearly 43,000 square feet of retail across two five-story buildings, according to CommercialEdge information. Asana Partners acquired the LEED Silver-certified property in 2019.

Workbox’s two-story coworking space, which is also the firm’s largest outside of Chicago, will encompass workspaces, conference rooms, as well as offices for teams varying between one and 130 workers. Amenities are slated to include a daytime lounge and gym, to name a few.

American Airlines Center, a multi-purpose arena home to the Dallas Stars and Dallas Mavericks, anchors the master-planned development. Other tenants include Cumulus Media and the Perot Museum of Nature and Science.

Located at 3030 and 3090 Nowitzki Way in a 90 walk-score and 81 transit-score area, the property is less than 1 mile from Interstate 35 East and roughly 2 miles from U.S. Route 75. Several retail and upscale dining facilities, as well as transit stops, are within walking distance.

The post Workbox Launches 1st DFW Coworking Location appeared first on Commercial Property Executive.

Crow Holdings Development has broken ground on Core30 Logistics Center, a 511,000-square-foot, two-building industrial campus in Dallas. Completion is scheduled for the first quarter of next year.

Stream Realty Partners Managing Director Matt Dornak and Vice President Ridley Culp were tapped as leasing agents. Other partners for the project include general contractor McFadden and Miller and architecture firm Azimuth Architecture.

Crow Holdings Development acquired the 33-acre site in March 2022, according to CommercialEdge information. A few months later, the developer took out a $35.8 million construction loan originated by Bank of Texas, public records show. That note is set to expire in September 2026.

READ ALSO: Mastering Supply Chain Challenges

The campus will include a 300,347-square-foot, cross-dock facility and a 210,653-square-foot front-load building. The two last-mile warehouses are rising at 5323 Lawnview Ave. in the East Dallas submarket, providing easy access to Interstate 30. The development is also within 5 miles of downtown Dallas, while the DFW International Airport is less than 24 miles away.

Dallas ranked second nationwide for industrial development

The Dallas-Fort Worth’s industrial pipeline remained strong at the start of the second quarter, with almost 23.4 million square feet under construction as of April, according to the latest CommercialEdge industrial report. It was surpassed only by Phoenix, which had 41.8 million square feet underway. The Metroplex also had a strong cold storage market, as 3.7 million square feet were delivered since the start of 2022, while no other market saw even 1 million completed in this time frame.

In March, Stonemont Financial completed Sunridge Industrial Park, a 565,259-square-foot facility in Wilmer, Texas. This marked the company’s 12th development in the state in four years and brought its portfolio in the area to about 2.5 million square feet.

During the same month, Creation finished work on Fort Worth Commerce Center, a three-building, 531,601-square-foot campus in North Fort Worth, Texas. This three-building property was already 70 percent preleased at completion.

The post Crow Holdings Breaks Ground on Dallas Industrial Campus appeared first on Commercial Property Executive.

Stream Realty Partners has completed The QUAD in Uptown Dallas. The property comprises a 345,425-square-foot, 12-story office building at 2699 Howell St., along with five stand-alone retail structures.

The QUAD also features more than one acre of open space, including an urban lawn, and The QUAD Club, a penthouse amenity center with a full-service bar, lounge, conference center and rooftop terrace with views of the Dallas skyline.

In addition, The QUAD will be the first building in Dallas to achieve both WiredScore and SmartScore Platinum ratings, according to Stream.

READ ALSO: Dallas Office Market Sees Rise in Development

Stream broke ground on the project in 2022, financing its construction with an $181 million loan from MSD Capital, according to CommercialEdge information. The project architect was OMNIPLAN and the general contractor was Austin Commercial.

Stream’s development team included Executive Managing Director and Partner Ramsey March, Senior Director Brad Dornak, Senior Director of Design and Construction Jerry Mays, and Director of Design and Construction Blake Bell.

The office building has floorplates ranging from 30,300 to 31,800 square feet and 13-foot-6-inch
floor-to-ceiling windows. Amenities include bike lockers and an underground parking with nearly 840 spaces, the same source shows.

The QUAD’s office space was substantially preleased, Stream having signed four tenants—Revantage, Chicago Title, M Financial Group and Berkshire Residential—for a total of 115,000 square feet. Leasing is being handled by Stream Senior Vice President Ryan Evanich and Vice President Marissa Parkin.

The project took shape on some 4 acres that were once home to The Quadrangle, one of the first mixed-use developments in the city. Downtown Dallas is roughly 2 miles south.

Market stall

The Dallas–Fort Worth office market saw positive absorption of just 175,300 square feet in the first quarter, on an inventory of 316.6 million square feet, according to a first-quarter report from Colliers.

Vacancy across both Class A and B spaces remained unchanged at around 20.6 percent overall—and at their highest levels in 10 years. Average rents for both classes declined slightly.

“Sublease space, which encompasses more than 10 million square feet, remains a significant influence in the market,” Colliers reported.

In mid-April, a joint venture of Pacific Elm Properties and KDC secured a $290 million construction loan for Parkside Uptown, their 500,000-square-foot office development in Dallas. Goldman Sachs Alternatives provided the four-year, floating-rate loan and JLL represented the borrower.

The post Stream Opens Uptown Dallas Office Tower appeared first on Commercial Property Executive.

Subaru of America plans to expand its Dallas Business Center in Coppell, Texas, by 200,000 square feet. Prologis, which is also the owner of the current facility, will develop the build-to-suit expansion. Completion is expected in late 2024, with occupancy slated to commence in early 2025.

Upon completion, the building will total 500,600 square feet. The developer aims for LEED certification, with the development planned to include EV charging stations and high-efficiency HVAC systems.

READ ALSO: Prologis, Blackstone Double Down on Data Centers, but Hurdles Remain

Of the new multi-purpose addition, 170,000 square feet will expand the existing Regional Distribution Center, which is used for storing and handling automotive parts. An additional 30,000 square feet will house the tenant’s Dallas-Fort Worth Zone office, as well as its Central Region sales and marketing operations, which it will relocate from Itasca, Ill.

Completed in 2016, the existing 300,360-square-foot facility is within Prologis’ Park 121, a 110-acre master-planned campus spanning some 1.4 million square feet. It features 36-foot clear heights and 500-foot depth, along with a 60-foot staging bay, parking for 176 cars and 40 trailer stalls.

Located at 360 N. Freeport Parkway, within a designated Foreign-Trade Zone, the property is at the intersection with State Highway 121 and has direct access to Highway 12. The facility is also some 5 miles north of Dallas Fort Worth International Airport, as well as 25 miles from Dallas and roughly 30 miles from Fort Worth.

The Metroplex’ robust industrial pipeline

As of March, the industrial construction pipeline in Dallas-Fort Worth totaled 24.5 million square feet, accounting for 2.6 percent of stock and placing the Metroplex second nationwide in terms of industrial space underway, according to a recent CommercialEdge report. These figures, however, represent a substantial, nearly 60 percent drop from the pipeline registered in the same period last year.

The metro also led industrial deliveries in 2023, with more than 61.7 million square feet coming online, representing a whopping 10 percent of existing stock. It also had the highest number of completed projects, with 175 properties being finalized last year.

The post Subaru Eyes DFW Industrial Expansion appeared first on Commercial Property Executive.

A joint venture between PowerHouse and Harrison Street has purchased a 50-acre site in Irving, Texas. Plans call for the construction of an almost 1 million-square-foot data center campus that will boast 200 MW of power at full build-out.

This marks the duo’s entrance in the Dallas-Fort Worth market and their sixth data center development.

Dubbed PowerHouse Irving, the campus is set to feature three powered shell data centers rising up to three stories, each with a 67 MW power load. Construction is expected to start early next year, with completion of the first powered shell set by the end of 2025.

Located at 111 Customer Way in the Las Colinas master-planned community, the campus will rise in the second-largest data center market in the country. Additionally, the site has immediate access to permanent power from an existing adjacent substation, serviced by Oncor.

PowerHouse’s growing data center inventory

PowerHouse Data Centers, a wholly owned division of American Real Estate Partners, currently has 30 facilities underway or in different planning stages, which will total 10.5 million square feet of data center space and more than 2.3 GW of power.

The company started with projects in Northern Virginia and is expanding in key markets across the U.S. Last month, PowerHouse and Harrison Street topped out ABX-1, their first data center in NoVa. The 265,850-square-foot building will initially provide 60 megawatts, with plans to increase it to 80 megawatts of total available power.

In January, the duo also acquired the site for a 900,000-square-foot powered shell data center campus in Reno, Nev., its first such project outside Northern Virginia. The three-building development’s total value is estimated at $400 million.

Data centers are becoming investors’ favorites

According to DLA Piper’s 2024 Real Estate State of the Market Survey, enthusiasm about data centers is picking up, with 53 percent of survey respondents mentioning it as the most attractive asset class, up 21 percent from last year.

Additionally, there were 27.4 million square feet of data centers under construction as of March, with an additional 33.5 million square feet in planning stages, a CommercialEdge industrial report shows. In 2023, construction starts increased to 14.2 million square feet, up from an average of 10 million square feet in previous years.

In April, Vantage Data Centers obtained a $3 billion green loan for the expansion of its Northern America footprint, bringing its 2024 funding to $10 billion. Plans call for the construction of VA3, a 288-megawatt campus in Ashburn, Va.

The post PowerHouse, Harrison Street Eye DFW Data Center appeared first on Commercial Property Executive.

Hillwood has landed forward financing for Alliance Westport 25, a 1.2 million-square-foot industrial building in Fort Worth, Texas. Part of the 27,000-acre AllianceTexas, the facility completed construction just last month.

Thrivent Financial for Lutherans provided the seven-year note, public records show. The loan refinances the property’s existing debt, a $57.4 million construction loan originated by Citizens Bank in August 2022, according to CommercialEdge data.

Hillwood broke ground on Alliance Westport 25 on a speculative basis. Situated at 14800 Blue Mound Road on a 74-acre lot, the industrial building features 40-foot clear heights, 188 dock doors and four drive-in doors.

READ ALSO: Top 5 Metros for Industrial Deliveries

Southwire Co., a wire and cable manufacturer, fully occupies the property. The company preleased the facility in July 2023 for a customer service center. The location aids in streamlining Southwire’s product to the Southwest and Midwest regions.

Downtown Fort Worth is 20 miles from the facility. The Dallas Fort-Worth International Airport is approximately 24 miles away.

JLL represented the borrower. Executive Managing Director Trey Morsbach, Managing Director DJ Meagher, Associate Ryan Pollack and Analyst Chad Lisbeth led the JLL Capital Markets team.

Industrial boom in the Metroplex

Dallas-Fort Worth had the most significant development pipeline in the South as of March, according to a CommercialEdge industrial report. Some 24.5 million square feet were under construction in the metro, representing 2.6 percent of total stock.

Additionally, the Metroplex saw the largest sales volume in the South and the second-largest in the nation in the first quarter of this year, totaling $831 million, the same data shows.

The post Hillwood Refinances 1.2 MSF Fort Worth Asset appeared first on Commercial Property Executive.

Urban Logistics Realty has sold Urban District 35, a 440,663-square-foot industrial park in Denton, Texas, a Dallas submarket. High Street Logistics Properties purchased the four-building asset by using an acquisition loan from The Hartford Financial Services Group, CommercialEdge data shows.

The developer broke ground on the campus in January 2022, financing its construction with a loan from First United Bank and Trust Co. Pennybacker Capital was the equity partner, Ridgemont Construction served as general contractor, while Kimley Horn provided engineering services for the GRS Andrade Architects-designed project.

READ ALSO: The Expansion of Flex Warehousing Solutions

Completed last June, the facilities range between 77,830 and 134,887 square feet and include 28- and 32-foot clear heights and 60-foot speed bays. The property also features a total of more than 570 parking spaces, 87 dock-high loading doors, eight drive-in doors and 45 trailer stalls.

Urban District 35 was 67 percent leased at the time of sale, with tenants including local manufacturers and national distributors. Holt Lunsford Market Directors Keaton Brice and George Jennings, along with Vice President Andrew Gilbert, spearhead the leasing efforts.

The campus is at 210 Acme St., providing easy access to Interstate 35. Downtown Denton is less than 2 miles northeast, downtown Dallas is within 40 miles, while the Dallas Fort Worth International Airport is some 27 miles away.

Dallas-Fort Worth sales volume remains strong

The Dallas-Fort Worth metro saw $831 million in industrial assets trading year-to-date through March, logging the second-largest sale volume nationally after the Bay Area, according to the latest CommercialEdge industrial report. Properties in The Metroplex changed hands for an average of $145 per square foot.

In March, Stonelake Capital Partners purchased a 119,995-square-foot distribution center in Fort Worth, Texas. Bessemer Trust and Hersch & Co. sold the asset, which is part of the 1,300-acre CentrePort Business Park.

At the beginning of the year, a real estate fund advised by Crow Holdings Capital and Creation Equity sold Northmark Commerce Center, a 234,475-square-foot industrial warehouse in Haltom City, Texas. The facility came online last year.

The post High Street Logistics Snaps Up Dallas Campus appeared first on Commercial Property Executive.

The property was subject to a $59.2 million loan originated by First United Bank & Trust back in 2018 and was set to mature in 2023, according to CommercialEdge data.

Spread on 7.5 acres, the four-building shopping center initially came online in 1999 and underwent renovations in 2022.

The property’s tenant roster includes a mix of national and regional retailers such as Starbucks, Land Design, United Real Estate, Natuzzi Editions, Nest Craft Cafe and Ovation Salon Suites. Muse Shops at Midtown has a weighted average remaining lease term of 8.7 years and more than 70,000 square feet of new leases signed in the last 12 months. At the time of the sale, the property was 58 percent leased.

READ ALSO: Retail Investors Are Adapting to Disruption. Here’s How.

The brokerage team included Senior Managing Director Adam Howells, Director Erin Lazarus, Associate Megan Babovec and Analyst Keenan Ryan.

Most active retail supply

Located at 5203-5233 Alpha Road, Muse Shops at Midtown is within the Platinum Corridor South submarket. Situated at the intersection of the Dallas North Tollway and Interstate 635, the property is in an area where the daily traffic count reaches more than 540,000 vehicles per day, according to JLL. The center serves 533,924 individuals within a 5-mile radius, with the consumer spending power of $20.2 billion, the same source shows.

The open-air retail center is in an urban mixed-use environment of North Dallas, situated adjacent to the Galleria Dallas—a 1.5 million-square-foot regional shopping mall that attracts more than 7.4 million visits annually—and a recently delivered 289-unit residential property.

The Dallas-Fort Worth retail market ranked as the third most active in the U.S. for transactions last year, and number two overall for single-tenant sales, according to a recent Marcus & Millichap report. The Metroplex leads the nation for new retail supply this year, with approximately 60 percent of the space scheduled to finalize in 2024 being preleased, the same source shows.

The post Lionstone Investments Sells 112 KSF Dallas Shopping Center appeared first on Commercial Property Executive.

The Fort Worth, Texas,-based real estate and development company signed a development agreement with Frisco Economic Development Corp. to launch the first phase of the project located at the intersection of US 380 and Dallas North Tollway along PGA Parkway.

Wilks Development owns 159 acres at the project site and Frisco EDC owns 59 acres. Firefly Park will be located at one of the most prominent gateways to the neighboring PGA of America headquarters and Omni PGA Frisco Resort.

At full build-out, the development will feature 3 million square feet of Class A office space, 400,000 square feet of upscale retail, dining and entertainment along with 1,200 hotel guestrooms, 230 townhomes and 1,970 mid-rise and high-rise residential units. The development will also include a 45-acre park and open space featuring a chain of lakes, an illuminated and immersive outdoor art walk, miles of hike and bike trails, fountain views and playgrounds.

READ ALSO: Can Adaptive Reuse Revitalize US Cities?

Under the development agreement, the 200-key Dream Hotel must be built in Phase One along with 650,000 square feet of Class A office space, dining and shopping and the 45-acre park.

Plans also call for a wedding chapel, event lawn and amphitheater that will be fully programmed and activated throughout the year. The amenities are expected to create a lifestyle and recreation destination for tenants, residents and tourists in Frisco.

Phase Two will likely include additional commercial space but the Wilks Development team will determine the specifics based on projected economic demands over the next few years.

Public-private partnership

Frisco EDC and Frisco North Development LLC, a subsidiary of Wilks Development, will collaborate to construct the initial public infrastructure for Firefly Park including streets and roads, medians, driveways, turn lanes, fire lanes, water lines, wastewater mains, drainage, electric utilities, gas utilities and telecom/fiber networks.

Mahard Parkway will be built out to a divided four-lane boulevard that connects PGA Parkway to US 380. A new bridge for pedestrians, cyclists and vehicles will be constructed across a lake and open space along Shearwater Boulevard.

Wilks Development acquired the land in 2015 with modest development plans for the site. Those plans changed once the PGA of America announced in 2018 it was moving from Florida’s Palm Beach County to Frisco. Frisco EDC calls it the “PGA halo effect” and notes the infrastructure partnership will create ready-to-build sites to help attract major headquarters to Frisco.

The golfers’ association built a 100,000-square-foot headquarters at a 600-acre mixed-use site that is part of the 2,500-acre Fields mixed-use, master-planned development. The PGA’s partners in the $520 million public-private investment included Omni Stillwater Woods, a joint venture led by Omni Hotels & Resorts with Stillwater Capital and Woods Capital; the city of Frisco, including the Frisco EDC and Community Development Corp.; and the Frisco Independent School District.

The post Wilks, Frisco EDC to Break Ground on $550M Dallas Project appeared first on Commercial Property Executive.

GTIS Partners has commenced construction on 121 Commerce Center, an industrial development totaling 272,160 square feet of space in Grapevine, Texas. Stream Realty Partners will handle leasing operations. The asset is planned to come online in the first quarter of 2025.

In October, Newmark arranged joint venture equity financing for the ground-up project, on behalf of the developer.

The rear-load property is taking shape at 1800 State Highway 121. It will feature 36-foot clear heights, 54 dock doors, two ramp doors and 403 vehicle parking spots. Suites will be available in 90,720-square-foot configurations.

The 17-acre industrial development is near Interstate 635 and within 4 miles from Dallas Fort Worth International Airport, 18 miles from Dallas Love Field Airport, 22 miles from Dallas and within 29 miles of Fort Worth, Texas.

Stream Realty Partners Senior Vice Presidents Sarah Ozanne and Mac Hall will lead leasing efforts for the industrial project, while GTIS Partners Managing Director Gaurav Sahay, Acquisitions Associate Macklin Grant, and Vice President Amanda Matthews are overseeing the development and asset management at 121 Commerce Center.

The second-largest pipeline in the U.S.

As of February, Dallas had the second-largest industrial pipeline in the U.S. and led the Southern region, a recent CommercialEdge report shows. With a total of 27.2 million square feet in its pipeline—2.9 percent of existing stock—the Metroplex was outperformed only by Phoenix, which had 42.7 million square feet.

Earlier this month, a joint venture of MBK Industrial and Hopewell Development started work on a 173,680-square-foot project in Irving, Texas. Colliers is in charge of leasing.

EastGroup Properties’ Denton Exchange 35 is another significant development in the Metroplex. The company broke ground earlier this month and tapped Stream Realty Partners as leasing agent.

The post GTIS Partners Kicks Off DFW Industrial Project appeared first on Commercial Property Executive.

A joint venture between Pacific Elm Properties and KDC has secured a $290 million construction loan for Parkside Uptown, a 500,000-square-foot office development in Dallas. Goldman Sachs Alternatives provided the four-year, floating-rate note. JLL represented the borrower in the transaction.

The partners broke ground on the project last year, financing its initial construction with a $300 million construction loan from Woods Capital, according to CommercialEdge data. Plans call for a 30-story tower slated to include a sky lobby, fitness facilities, outdoor terraces and ground-floor retail. Kohn Pedersen Fox Associates, along with Corgan Architects, provided designs and completion is anticipated in 2027.

READ ALSO: Top 10 Markets for Office Deliveries in 2023

Bank of America will anchor the tower, having preleased 248,000 square feet at the property to occupy 49 percent of the space. The tenant is halving its Dallas footprint, relocating from the 500,000 square feet currently housing it at the 72-story Bank of America Plaza.

Located at 1919 Woodall Rodgers Freeway, at the intersection with North Harwood Street in the city’s Uptown, the site is adjacent to Klyde Warren Park and near the Dallas Museum of Art. The property is also next to the St. Paul at Woodall Rodgers transit station and within walking distance of Victory Station.

JLL Senior Managing Directors Jim Curtin and Michael Cosby, along with Executive Managing Director Trey Morsbach and Managing Director Greg Napper, led the team that assisted Pacific Elm Properties in securing the loan.

Dallas office development picks up

Dallas-Fort Worth’s office construction pipeline totaled 6.7 million square feet as of February, accounting for 2 percent of total stock, according to recent CommercialEdge data. The value was 40 basis points higher than the 1.6 percent national rate.

During the first two months of the year, developers broke ground on more than 616,000 square feet of office space, surpassing 2023’s construction activity from the same period.

One of the largest office projects currently underway in the metro is Wells Fargo’s campus in Irving, Texas, also developed by KDC. Scheduled to come online by the end of next year, the property will measure 850,000 square feet across two buildings.

The post Pacific Elm, KDC Land $290M for Dallas Office Project appeared first on Commercial Property Executive.

CapRock Partners has made its Texas industrial debut with the acquisition of Peachtree Distribution Center, a 396,750-square-foot facility in Mesquite, a Dallas-Fort Worth submarket. Plans call for capital improvements to enhance the property’s functionality and aesthetics.

The previous owner was Dalfen Industrial, according to CommercialEdge data, which acquired the asset in 2020 from Clarion Partners. CBRE National Partners represented the seller in the transaction.

The warehouse came online in 2001 and was fully leased to three tenants at the time of sale. Features include 66 dock-high loading doors with levelers and bumpers, 31-foot clear heights, three drive-in doors and minimal office space. Additionally, the property has 120-foot truck courts that are expandable to 175 feet, some 260 car parking spaces and 50- by 60-foot bay spacing.

READ ALSO: Getting in the Heads of Industrial Tenants

Located on 24 acres at 510 N. Peachtree Road, the cross-dock distribution center is 12 miles from downtown Dallas and 30 miles southeast from Dallas-Fort Worth International Airport. The facility is also 1 mile from a 756,668-square-foot industrial development that is scheduled to come online in 2025.

CBRE National Partners Vice Chair Randy Baird, Executive Vice Presidents Ryan Thornton, Jonathan Bryan and Nathan Wynne, along with First Vice President Eliza Bachhuber and Senior Associate Elliott Dow, represented the seller in the transaction. Baird and Bryan were also part of the team that represented TA Associates and Holt Lundsford in the sale of a two-building campus in Denton, Texas.

CapRock’s growing industrial inventory

CapRock Partners’ industrial inventory includes more than 30 million square feet across the U.S. The firm focuses on acquiring middle-market, value-add industrial assets and developing large-scale facilities.

Last August, the company broke ground on the 1.3 million-square-foot first building within CapRock Central Point III in Visalia, Calif. Upon completion, the campus is expected to total 2.7 million square feet.

A couple of months earlier, CapRock announced plans for CapRock Global Logistics, an approximately 500,000-square-foot development in Moreno Valley, Calif. The project is part of the 2,610-acre World Logistics Center master plan.

The Metroplex leads the region for industrial sales

The Metroplex registered the largest sales volume among Southern markets in January and February at $318 million, according to the latest CommercialEdge industrial report. The facilities traded for $165 per square foot on average. The metro’s vacancy rate during the same period clocked in at 4.7 percent, 30 basis points lower than the national average.

In January, a real estate fund advised by Crow Holdings Capital and Creation Equity sold Northmark Commerce Center in Haltom City, Texas. The 234,475-square-foot building came online last year.

Other notable recent deals include Forefront Commercial Real Estate’s acquisition of a 627,303-square-foot industrial portfolio in the Northwestern Dallas submarket. AEW Capital Management sold the four fully leased facilities.

The post CapRock Makes 1st Texas Industrial Buy appeared first on Commercial Property Executive.

AEW Capital Management has sold the North Dallas Infill Portfolio, with the assistance of Newmark. Located in the Dallas suburbs of Farmers Branch, Carrollton and Addison, the assets total 627,303 square feet.

Forefront Commercial Real Estate purchased the four fully leased industrial buildings. Lincoln Life & Annuity Co. of New York, a subsidiary of Lincoln Financial Group, provided a $45 million acquisition loan, public records show.

The assets previously traded in July 2019, when AEW Capital Management acquired a 2.9 million-square-foot Texas industrial portfolio from TA Realty, according to CommercialEdge.

READ ALSO: Dallas Industrial Sector Boomed With Momentum in 2023

The shallow-bay facilities came online between 1970 and 1979, feature 22- to 24-foot clear heights and include a combined 77,000 square feet of office space. The properties that changed hands include:

• 240,000-square-foot distribution center featuring 28 dock-high loading doors, more than 200 parking spaces and three drive-in doors
• two-building, 127,054-square-foot property with 18 dock loading doors and two drive-in doors, as well as some 85 parking spaces
• 260,249-square-foot warehouse with 28 dock loading doors and five drive-in doors, almost 290 parking spaces and a 100-foot truck court

The three properties are within a 10-mile radius at 4415-4585 Simonton Road in Farmers Branch, 1135 and 1215 Crowley Drive in Carrollton and 4040-4130 Lindbergh Drive in Addison. The Northwestern Dallas submarket facilities have access to interstates 35E and 635.

Newmark Vice Chairs Dustin Volz and Stephen Bailey, Senior Managing Director Dom Espinosa and Managing Director Zach Riebe, along with Associates Taylor Hare and Chloie Mercer, represented the seller.

Metro Dallas remains attractive for investors

The Metroplex saw $318 million in industrial transactions in the first two months of the year, according to the latest CommercialEdge industrial report. The properties traded for an average of $165 per square foot, pricier than the $132 national average.

One of the largest facilities to change hands in that interval was a 430,852-square-foot Fort Worth asset that Sterling Investors acquired from GLP Capital Partners. The two-building portfolio transaction also included a 411,460-square-foot property in Houston.

A month earlier, a real estate fund advised by Crow Holdings Capital and Creation Equity sold Northmark Commerce Center, a 234,475-square-foot industrial facility in Haltom City, Texas. The warehouse was fully leased at the time of sale.

The post AEW Capital Sells Dallas Industrial Portfolio appeared first on Commercial Property Executive.

A joint venture between MBK Industrial Properties and Hopewell Development has broken ground on Tristar Business Park, a two-building industrial campus in Irving, Texas. Colliers will be in charge of leasing at the 173,680-square-foot project.

The developer obtained a $17.6 million construction loan from American Momentum Bank in December last year, according to CommercialEdge data.

Building One will measure 69,160 square feet and will feature eight dock-high loading doors and one drive-in door with ramp, 130-foot truck courts, 100 vehicle parking stalls and 40- by 52-foot column spacing.

READ ALSO: Top 5 Emerging Industrial Markets in 2024

The 104,520-square-foot Building Two will have 10 dock loading doors, 140 car stalls, two drive-in doors with ramps, 140-foot truck courts and 52- by 50-foot column spacing. Both facilities will have 32-foot clear heights.

Rising at 7810 and 7815 Jetstar Drive, the property will have direct access to Highway 114 and will be close to the Dallas Fort Worth International Airport. Downtown Dallas is some 17 miles away, while downtown Fort Worth is roughly 27 miles southwest.

Tristar Business Parks will also be within 3.5 miles from DFW Park 161, a 197-acre master-planned industrial campus where LKQ Corp. signed a 523,260-square-foot lease.

Colliers Executive Vice President Greg Cannon and Associate Colin Penny are in charge of leasing the development. In February, another Colliers team represented the landlord in a 142,100-square-foot leasing agreement at Barker Cypress Distribution Center in Cypress, Texas.

The Metroplex’s high-performing industrial sector

Dallas had the second-largest industrial pipeline as of February, with a total of 27.2 million square feet under construction, according to the latest CommercialEdge industrial report. Only Phoenix surpassed the Metroplex with almost 42.7 million square feet underway. Additionally, the vacancy rate clocked in at 4.7 percent during the same period, 30 basis point lower than the national average.

Last week, EastGroup Properties started construction on Denton Exchange 35, a 244,000-square-foot industrial campus. The two-building project is rising on a 20-acre site.

In January, Jackson-Shaw partnered with Compatriot Capital for the development of Lakeview Business District, a more than 1.8 million square-foot park in Rowlett. Built in two phases, the campus is expected to consist of seven building upon completion.

The post MBK Industrial JV Breaks Ground on Dallas-Area Campus appeared first on Commercial Property Executive.

EastGroup Properties has broken ground on Denton Exchange 35, a two-building, Class A 244,000-square-foot industrial development in Denton, Texas. Alliance Architects, GMcivil and Rosenberger Construction are part of the team delivering the project.

Stream Realty Partners Senior Vice Presidents Forrest Cook and Mac Hall alongside Associate Connor Land will handle the future industrial complex’s leasing services.

Spread out on a 20-acre lot, the project will accommodate up to six tenants across its two buildings, according to CommercialEdge data. Across both buildings, plans call for a total of 53 dock-high doors, four ramped doors, 239 parking spaces, as well as 34 trailer parks with the possibility of expanding to 110. Building One will feature a 210-foot-deep rear load while Building Two is set to present a 260-foot-deep front load.

Industrial Development in Dallas-Fort Worth

Located at 6901 N. Interstate 35, the project is nestled at the intersection of interstates 35 W. and 35 E. Denton Enterprise Airport is less than 5 miles east, while U.S. Route 380 is under 2 miles northward. Less than 30 miles away, EastGroup Properties is constructing Basswood 35. The firm broke ground on the project’s phase two last year, setting into motion the construction of three buildings totaling north of 350,000 square feet.

A recent CommercialEdge report reveals that nearly 419.8 million square feet of industrial space were underway nationwide as of February. The Dallas-Fort Worth metroplex had 27.2 million square feet under construction, representing 2.9 percent of stock. The Metroplex’s supply pipeline was eclipsed only by Phoenix’s, which rose up to 42.6 million.

Just last year, developers brought online 61.9 million square feet of industrial space in Dallas-Fort Worth, accounting for 6.6 percent of stock, according to a recent market update. During the same period, developers broke ground on 19.1 million square feet inside the Metroplex.

The post EastGroup Properties Breaks Ground on DFW Industrial Project appeared first on Commercial Property Executive.

The Dallas office market has seen relatively robust development activity in 2024’s first two months, according to the latest CommercialEdge data. Despite economic headwinds, in January and February construction starts were up compared to the same period last year. In terms of transaction activity, there were a number of significant sales, although the average price per square foot considerably lagged many of its peers.

The vacancy rate in the Metroplex was above the U.S. rate, but on par with other secondary markets. Additionally, several large leases were signed in the metro over the past few months, while the coworking sector maintained a steady hold.

Dallas construction starts on the rise

As of February, nearly 6.7 million square feet of office space were under construction across 35 properties in the Dallas market, accounting for 2 percent of total stock. The construction rate was above the 1.6 percent national one, as the metro surpassed some secondary markets such as Phoenix (0.6 percent), Houston (0.9 percent) and Atlanta (1.8 percent). Austin (3.9 percent) and Nashville (4.3 percent) registered higher rates.

One of the largest properties currently underway is 23Springs, a 626,215-square-foot project in Dallas’ Uptown. Developers Granite Properties and Highwoods Properties broke ground in June 2022, followed by Highlands acquiring a 50 percent stake in the development one month later for $130 million. Recently, Deloitte signed a lease for four full floors totaling more than 100,000 square feet at the upcoming high-rise, and expects to move in by the spring of 2026.

In 2024’s first two months construction commenced on some 616,607 square feet of office space in Dallas, accounting for 0.2 percent of existing stock. This represents an increase from the figures registered during the same period in 2023, when four properties broke ground for a total of 428,500 square feet.

The largest property to break ground so far this year is Parkside, a 500,000-square-foot project developed by a joint venture of Pacific Elm Properties and KDC. Bank of America will occupy 248,000 square feet at the 30-story high-rise, as the tenant is reducing its footprint in the metro by more than a half. Kohn Pedersen Fox is the architect in charge and completion is scheduled for 2027’s second half.

Only one property came online in Dallas year-to-date through February, spanning 100,000 square feet. Throughout last year, developers added some 4.2 million square feet to the market across 27 properties, representing 1.3 percent of stock. In terms of volume, the metro greatly surpassed most of its peers such as Houston (2.8 million square feet), Atlanta (2 million square feet), Charlotte (1.7 million square feet) and Phoenix (639,219 square feet).

Dallas sales prices lower than in peer markets

As of February, more than 1.6 million square feet of office space changed hands in 14 deals in the Dallas market for a total investment volume of $46.7 million. Last year, investments totaled $322.8 million in the metro, as more than 10 million square feet traded.

As of the end of 2023, the price per square foot clocked in at $117.90. After 2024’s first two months, it averaged $92.70, nearly on par with Houston’s $93.80, but considerably lagging all other peer markets such as Atlanta ($140.20), Charlotte ($142.70), Nashville ($200.90) and Austin ($542.80).

The largest deal so far this year is the sale of Collins Crossing, a 300,887-square-foot office building in Richardson. The joint venture of Goldenrod Cos. and Reserve Capital Partners purchased the asset from Franklin Street Properties, along with an adjacent 3.6-acre parcel. It was 85 percent occupied at the time of the sale and it previously traded in 2003 for $46.6 million.

Dallas office vacancy above U.S. rate

As of February, the vacancy rate in the Dallas office market reached 21.1 percent, up 430 basis points over 12 months, and above the U.S. rate of 17.9 percent. The metro fared better than some of its peers, such as Austin (22.1 percent), Denver (22.1 percent) and Houston (24.4 percent), but not as well as Phoenix (17.9 percent) and Nashville (16.5 percent).

One of the largest deals that closed in Dallas this year is law firm Sidley Austin LLP inking an agreement with Granite Properties and Highwoods Properties for 118,484 square feet at the aforementioned 23Springs development. The company is expanding its footprint in the metro as it is moving from the 80,000-square-foot space it currently occupies at another building owned by the same partners.

Waste and sustainability operator CheckSammy has also expanded its commitment in Dallas to 45,098 square feet. It signed a deal with landlord Property Advisers Realty for the space at The Madison, a 288,000-square-foot Class A office building within the Platinum Corridor South submarket. The tenant has doubled the space it previously occupied at the location.

Coworking sector keeps steady

As of February, there were nearly 4.9 million square feet of shared office space in the Dallas-Fort Worth market, accounting for 1.7 percent of stock. The share of flexible space was on par with the national average and with many peers, including Houston and Austin, but behind Atlanta (2 percent), Denver (2 percent) and Nashville (2.7 percent).

Regus has the largest coworking footprint in the Metroplex, comprising nearly 660,000 square feet across 38 properties. Other major players in the Dallas coworking market include WeWork, with some 418,000 square feet in seven locations, and Lucid Private Offices, which operates roughly the same amount of space in 17 locations.

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MP Materials has obtained a $58.5 million award to advance construction on the first fully integrated rare earth magnet manufacturing facility in the U.S. The developer broke ground on the Fort Worth, Texas, development in April 2022.

The IRS and Treasury issued the Section 48C Advanced Energy Project tax credit allocation after the Department of Energy conducted an evaluation of approximately 250 projects, assessing their technical and commercial viability, as well as their environmental and community impact.

READ ALSO: Challenges and Solutions for Expanding EV Manufacturing

The 200,000-square-foot property is part of MP’s plan to invest $700 million over the next two years in restoring the U.S. rare earth magnetics supply chain. Located within the 27,000-acre AllianceTexas development, the facility is expected to produce magnets powering approximately 500,000 EV motors per year.

The company is currently producing magnet precursor materials in a pilot facility in North America. The firm plans to start commercial production of precursor materials in Fort Worth this summer and finished magnets by late 2025.

General Motors, MP’s foundational customer, will receive the product supplies to bolster its North American EV production. Demand for neodymium-iron-boron magnets is expected to triple by 2035 according to MP. They are used in the electric motors and generators that power hybrid and electric vehicles, robots, wind turbines and drones.

EV sector sees major growth in the U.S.

In 2023, sales of new electric vehicles grew to 7.6 percent of the overall market, considerably higher than 2022’s 5.9 percent and the 3.2 percent registered in 2021, according to research by J.D. Power.

In November last year, Toyota invested $8 billion in its North Carolina EV battery manufacturing plant, bringing the total sum to $14 billion. Toyota Battery Manufacturing North Carolina will produce batteries for plug-in hybrid electric vehicles and battery electric vehicles using 100 percent renewable energy.

A few months earlier, Hyundai Motor Group partnered with LG Energy Solutions for the construction of a $4.3 billion battery production plant near Savannah, Ga. The joint venture expects to start battery production at the new facility by late 2025.

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Silver Star Properties REIT has borrowed $135 million to pay off creditors and liquidate a 4.2 million-square-foot legacy portfolio with office, retail and industrial assets as it repositions solely into the self storage sector.

Hartman SPE LLC, an indirect subsidiary which owns the legacy office, retail and industrial properties, and lenders Benefit Street Partners and RMWC closed on the exit facility on March 27th. The closing allows Hartman SPE to fund its Chapter 11 Plan of Reorganization, which was approved by the U.S. Bankruptcy Court for the District of Delaware on Feb. 26. The Chapter 11 plan provides for payment in full to all unsecured creditors and tenants and the full reinstatement of all interests without impairment. Hartman SPE filed for Chapter 11 bankruptcy in September.

BSP, a New York-based credit-focused alternative asset manager, provided a $120 million two-year floating-rate senior loan with no extension options. RMWC, a New York-based boutique private lender, provided a $15 million co-terminus second mortgage loan.

READ ALSO: Getting Into the Heads of Tenants

The portfolio totals 27 properties across multiple asset classes through the Dallas, Houston and San Antonio MSAs. There are 24 office assets in the portfolio as well as two retail properties and one industrial property. When all the sales are completed, Silver Star expects to have approximately $370 million in available funds.

A giant step forward

For Silver Star, which announced its plan to shift its investment focus to self storage last April, finalizing the loans was a major move.

Silver Star began that pivot with the April 2023 acquisition of Southern Star Self-Storage Investment Co., according to Multi-Housing News, the sister publication of Commercial Property Executive. Southern Star Self Storage owned a portfolio of nine self-storage properties totaling 2,526 units and 321,291 rentable square feet. At the time of acquisition, the company had two assets under contract, adding 208,220 rentable square feet to its portfolio. In December, MHN reported Silver Star had acquired two self-storage facilities in Houston totaling 115,126 rentable square feet from Harrison Street Real Estate Capital.

At the beginning of 2023, Houston-based Silver Star owned more than 40 office, retail and industrial properties with about 7 million square feet of space. By Dec. 31, the company owned 33 commercial properties comprising about 4.6 million square feet.

The company has been selling properties since last year, including Cooper Street Plaza, a four-building, 127,696-square-foor retail center in Arlington, Texas, in July through a 1031 tax-free exchange. It also sold several office properties including the 170,000-square-foot Westway One in Irving, Texas; the 139,600-square-foot Bent Tree Green, the 10-story North Central Plaza I and the 15-story Gateway Tower, all in North Dallas, according to The Real Deal.

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The City of Arlington has recently approved the request for the rezoning of the 45-acre retail center. Trademark had conducted market research, planning sessions, community meetings and engagement with the local community over the past year.

The firm purchased the property from ShopCore Properties in 2022, after some city leaders encouraged the former owner to invest in the shopping center or sell it due to its outdated design and rising vacancy rates.

After the acquisition, the City of Arlington forged a 30-year public-private partnership with the new owner. The agreement requires an investment of at least $150 million into the property in the next 6 years and the collaboration with residents and leaders on redevelopment plans, as reported by Fort Worth Inc.

The Arlington City Council agreed to co-invest $14.7 million from its Innovative Venture Capital Fund in the property’s redevelopment, according to Kera News. If Trademark doesn’t meet the agreement requirements, it will owe $9 million in grant funding.

The rebirth of an outdated shopping center

Trademark’s strategy centers on the redesign and transformation of Lincoln Square into a prominent regional gateway along Interstate 30. The demolition of the 40-year-old shopping center at 1500 N. Collins St. is scheduled to commence in the second quarter of 2025; at the same time Anthem, the new name of the revamped site, will go into effect.

Upon completion, the first phase of Anthem will showcase roughly 152,000 square feet new retail and restaurants and 125,000 square feet of modern office and co-working space. Additionally, it will include a 200-key hotel and 355 apartments built to meet the minimum standards of NGBS and LEED Bronze certification.

Trademark will leverage existing surface parking areas and reimagine the building footprint, with approximately 229,000 square feet of the shopping center slated for demolition, 243,000 square feet of legacy space to be retained and 65,000 square feet to undergo renovations.

The developer intends to retain BoomerJacks, Olive Garden, Raising Cane’s and the bank space. The shops along Center Street—such as Ulta Beauty and PetSmart—will remain, along with Studio Movie Grill, which will receive a new art deco-style facade. The revitalized property will also include an expansive green space designed to accommodate outdoor concerts, wellness classes, artist markets and various community events at the heart of the development.

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Coffee roaster, wholesaler and distributor Farmer Brothers has signed a 54-month leasing agreement for 25,000 square feet at 14501 N. Freeway in Fort Worth, Texas. The owner is Panda Restaurant Group, which acquired the property in 2022, according to CommercialEdge data.

The tenant will relocate its headquarters to the new space by the end of its 2024 fiscal year. In 2023, it sold its previous, 540,000-square-foot facility in Northlake, Texas, along with its direct ship business. TreeHouse Foods purchased the asset for approximately $100 million.

The new offices will house the company’s executive team and between 125 and 150 of its support staff. Farmer Brothers also moved and centralized its roasting operations to a facility in Portland, Ore.

Completed in two phases, in 2000 and 2008, the property spans 170,000 square feet and includes 70,000 square feet of industrial space. In 2022 it became subject to a 10-year $27.3 million loan from JPMorgan Chase, CommercialEdge data shows. Another tenant at the facility is Galderma Laboratories, according to the same source.

Metroplex office vacancy keeps ticking up

Located off Interstate 35, the property is roughly 18 miles north of downtown Fort Worth. It is also some 20 miles from Dallas-Fort Worth International Airport.

As of February, the full-service equivalent listing rate for office spaces in the Metroplex was $27.62, representing a 4.6 percent year-over-year decrease, considerably below the $37.83 U.S. figure, a recent CommercialEdge report shows. The vacancy rate in the Metroplex climbed 430 basis points over a 12-month period through February to 21.1 percent, above the national rate of 17.9 percent.

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Lincoln Property Co. is moving forward with plans for the development of a mixed-use campus in Uptown Dallas.

The firm has acquired the 4-acre site at 2500 Cedar Springs Road where it will build from 400,000 to 500,000 square feet of office space, about 250 luxury apartment units, a 200-key hotel/residence and 25,000 square feet of food and beverage retail, as well as ample green space.

Lincoln had initially announced the project in 2022. At the time, the campus was slated to include a 20-story office high-rise totaling 525,000 square feet and two residential buildings surrounding a central park, according to The Dallas Morning News.

Located in the heart of Uptown Dallas, 2500 Cedar Springs is a short walk from The Crescent office and hotel, the Ritz Carlton Hotel, the Katy Trail, Klyde Warren Park, Victory Park, the American Airlines Center, and less than 5 miles from Love Field.

READ ALSO: Uncovering Regional Disparities in Remote Work

Although a development timeline hasn’t been finalized yet, the project is already being marketed to potential anchor tenants, Chase Prospere, Lincoln senior vice president & office market leader in Dallas, said in prepared remarks.

Lincoln will handle leasing in house; Dallas-based Jake Young and Worthey Wiles are leading the effort.

Twisted office market conditions

The Dallas-Fort Worth office market is in a contradictory situation, according to a forecast from Marcus & Millichap, with steady growth in office-using sectors like professional and business services, financial activities and information, even as post-pandemic remote work undermines that.

Marcus & Millichap reports “net absorption has fallen shy of new supply in each of the past four years, and the same is expected in 2024 to an even greater degree. A wave of expiring pre-pandemic leases will drop net absorption this year to its softest measure since the 2020 shock.”

Still, the forecast is optimistic about the Metroplex’s ability to remain the beneficiary of steady corporate in-migration.

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Piedmont Office Realty Trust has sold One Lincoln Park, a 257,000-square-foot office building in Dallas, for $54 million or $210 per square foot, in an all-cash transaction.

Fintech company Triumph Financial purchased the property and intends to use it as its new headquarters, as reported by The Dallas Morning News. The building will be rebranded as One Triumph Place and Piedmont will be retained as property manager.

The seller plans to use the proceeds to pay off roughly $50 million in senior unsecured debt maturing in March. The asset previously traded in 2013 for $56.7 million, according to CommercialEdge data.

Completed in 1998, the 10-story building features 26,000-square-foot average floorplates and ground-floor retail. The LEED Gold-certified property was 59 percent leased at the end of 2023; tenants include Starr Insurance, Caelus Energy and Texas Financial Partners, the same source shows.

Triumph Financial is now headquartered at 12700 Park Central Drive. Following the purchase, the firm will occupy the One Lincoln Park’s existing vacancy—relocating more than 500 employees—and will slowly expand its presence in the building as current leases expire, Bisnow reported.

Metroplex office market contracts

Located at 8401 N. Central Expressway, One Lincoln Park is off Highway 75, roughly 8 miles north of downtown Dallas. It is also some 6 miles from the Dallas Love Field airport and adjacent to the NorthPark Center shopping mall.

Throughout 2023, more than 10 million square feet of office space changed hands in the Dallas-Fort Worth market across 69 sales, for a total of nearly $323 million, CommercialEdge data shows. These figures represent a considerable drop from the previous year, when 28 million square feet traded for an investment volume of more than $2.5 billion. Average per-square-foot prices also decreased from $200 to $118.

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Stonemont Financial Group has finished construction of Sunridge Industrial Park, a 565,259-square-foot Class A logistics facility in Wilmer, Texas. The warehouse marks the developer’s 12th project in the Lone Star State in four years, bringing its portfolio in the area to roughly 2.5 million square feet.

Construction of Sunridge Industrial Park began in 2023 and took place over a 12-month period. A $40 million loan provided by Bank OZK financed the development, CommercialEdge data shows.

LGE Design Build, partially headquartered in Dallas, oversaw the project’s design and construction, and sought to integrate the park with the surrounding green space. Nathan Lawrence, Krista Raymond and Will Carney, brokers with KBC Advisors, are spearheading leasing at the East Dallas submarket property.

A new logistics facility near Dallas

Primarily a warehousing and distribution facility, the 39-acre Sunridge Industrial Park has 40-foot clear heights and 70-foot speed bays, along with four loading ramps and 128 dock doors. The property also features 309 car and 135 trailer parking spaces with a 135- to 190-foot truck court, as well as 3,091 square feet of speculative office space.

READ ALSO: Staying Busy When Industrial Momentum Hits the Brakes

Located at 800 Cottonwood Valley Road, Sunridge neighbors logistics facilities used by Amazon, Unilever, Walmart, Carmax, Ace Hardware and American Standard. The property is roughly 1 mile east of an onramp to Interstate 45 and close to a Union Pacific Intermodal line. Downtown Dallas is some 16 miles northwest.

The Dallas-Fort Worth industrial market remained a powerhouse through 2023, according to recent CommercialEdge research. The Metroplex saw 61.9 million square feet come online across 177 properties last year, the largest delivery volume in the nation by several orders of magnitude. The amount marked 6.6 percent of total stock, more than double the national average of 3.1 percent.

Squaring up to the Sun Belt

Alongside its Texas expansion, Stonemont has been active in Florida, North Carolina and Georgia as well. The firm has recently wrapped up construction on South Florida Logistics Center 95, a two-building, 1.3 million-foot campus in Fort Pierce, Fla.

In terms of new construction, Stonemont broke ground late last year on 429 Business Center, a seven-building, 259,000-square-foot campus in Orlando, Fla. Upon completion, the industrial complex could house users who supply goods to Walt Disney World.

The post Stonemont Wraps Up Construction on Dallas Logistics Project appeared first on Commercial Property Executive.

Vista Property Co. has purchased Lake Worth Marketplace, a 197,553-square-foot retail power center in Lake Worth, Texas. The previous owner was Principal Real Estate Investors, according to CommercialEdge data. JLL represented the seller.

Built on some 23 acres between 2005 and 2007, the Kohl’s-anchored property features a diverse mix of national and regional tenants such as Marshalls, Burlington Coat Factory, pOpshelf, Lane Bryant and Bath & Body Works.

At the time of the sale, the shopping center was 93 percent leased. Lake Worth Marketplace has an average tenant tenure of 14.7 years and a 4.5-year WALT, according to JLL.

JLL Senior Managing Directors Barry Brown and Chris Gerard, Director Erin Lazarus and Analysts Keenan Ryan and Ben Pollack led the Investment Sales Advisory team who assisted the seller.

Benefits of a high-growth area location

Located at 6034 Azle Ave. in the North Fort Worth submarket, the shopping center is near Interstate 820, which allows easy access across the Fort Worth metropolitan area. Lake Worth Marketplace serves around 176,000 individuals within a 5-mile radius, with the average household income of approximately $91,378 and $5.38 billion in consumer spending power, JLL data shows.

Due to its location in a high-growth area of Fort Worth, the retail center has had more than 1.5 million customer visits in the last 12 months. The property’s demand drivers include Texas Christian University, the Fort Worth Culture District, the Fort Worth Stockyards, Dallas-Fort Worth International Airport and the Lockheed Martin Campus.

READ ALSO: Why Those Big Store Closings Aren’t the Whole Story

With the population rising intensely over the past 5 years, Dallas-Fort Worth has witnessed a strengthening long-term retail spending outlook, which generated leasing from expanding local brands and new vendors alike, according to a recent Marcus & Millichap report.

Dallas-Fort Worth ranked as the third most active market for retail real estate sales last year and second for single-tenant transactions in the U.S., the same report shows. The metro is expected to keep its momentum this year.

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Dallas-Fort Worth’s industrial sector had an active year in 2023, leading the nation in terms of new delivered space, according to CommercialEdge data. The market also attracted a diverse array of companies that benefited from legislative tailwinds such as the Texas CHIPS Act, which spurred semiconductor expansion with developer grants.

Leading the charge with a staggering 61.9 million square feet of new deliveries, the Metroplex set a new benchmark for 2023, surpassing the national pace more than twice. With a robust pipeline of projects and several notable transactions, the Dallas-Fort Worth area solidified its position as a hotspot for the industrial sector, even as it navigated the complexities of the current economic climate.

Dallas: Largest new industrial inventory to come online

In 2023, Dallas led the industrial sector in terms of deliveries, with almost 61.9 million square feet (6.6 percent of total stock) across 177 properties brought online, more than double the 3.1 percent national average. The metro was followed by Phoenix (32.5 million square feet), Chicago (27.8 million square feet) and the Inland Empire (25.6 million square feet). Dallas’ total industrial inventory at the end of the year was 944.4 million square feet, being surpassed only by Chicago (1 billion square feet).

Last year, 19.1 million square feet of industrial space broke ground in the metro, accounting for 2 percent of total stock.

In the first month of this year, the Metroplex had 27.2 million square feet (2.9 percent of total stock) of industrial space under construction across 91 properties. Among peer markets, Phoenix outpaced Dallas with 11.2 percent of total stock under construction, while Atlanta (1.0 percent), Chicago (1.1 percent) and the Inland Empire (1.6 percent) were at the opposite pole, CommercialEdge shows.

In January, Jackson-Shaw and Compatriot Capital announced plans for Lakeview Business District, a more than 1.8 million-square-foot campus in Rowlett. Construction on the first phase, which consists of five buildings, is expected to start this month.

In October 2023, Walmart opened its 1.5 million-square-foot automated fulfillment center in Lancaster. The facility is part of a 293-acre site that also includes a 730,000-square-foot grocery distribution center.

Active investment activity despite challenges

In 2023, Dallas transaction activity closely mirrored national trends. The U.S. figure, on a decelerating pace, clocked in at $52.1 billion, approximately half of 2022’s total. Transaction sales in the Metroplex amounted to almost $3.4 billion, the highest volume in the Southern region. Nationally, only the Inland Empire and Los Angeles surpassed Dallas, with $3.9 and roughly $4 billion, respectively.

The average price per square foot clocked in at $129, on par with the national figure. The Inland Empire ($248) and New Jersey ($218) saw the highest price per square foot among peer markets, while Atlanta ($107), Indianapolis ($99) and Chicago ($92) were at the opposite end.

In October, Affinius Capital sold a 489,310-square-foot Class A industrial building, which is part of its 191-acre Southfield Park 35 campus. TradeLane Properties acquired the asset for $78.6 million or $160.6 per square foot, commanding one of highest prices per square foot.

In the second quarter of 2023, MDH Partners acquired Fort Worth Logistics Hub Building 1 for $67.5 million. VanTrust Real Estate sold the 670,914-square-foot warehouse.

Industrial vacancy rate climbs in Dallas

With an increase in industrial space coming online, Dallas-Fort Worth’s vacancy rate clocked in at 4.3 percent in December, a 50-basis-point increase compared to January 2023, but 30 basis points lower than the national average. Atlanta (3.7 percent), Indianapolis (3.3 percent) and Phoenix (3.2 percent) posted the lowest vacancy rates, while the Inland Empire (5.0 percent) and New Jersey (4.8 percent) were some of the peer markets with more vacant industrial space.

In August, LKQ Corp. signed a 523,260-square-foot lease agreement at DFW Park 161, a 197-acre master-planned campus owned by Perot Development Co. and Invesco Real Estate. A few months earlier, Careismatic Brands committed to Ares Management and Archway Properties’ 1 million-square-foot facility to create a shipping hub.

Dallas’ industrial sector ended 2023 with an average rent of $5.77 per square foot, a 7.1 percent increase year-over-year, but still below the $7.7 national figure. Meanwhile, Baltimore ($7.7) and Tampa ($7.4) led the region for average industrial rents, according to CommercialEdge information.

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Barrett Distribution Centers, a third-party logistics provider based in Franklin, Mass., has expanded its operations in the Dallas region with a second location.

The firm has opened a 529,000-square-foot facility in Forney, Texas, carrying the address 13991 U.S. Highway 80. The property’s owner was not disclosed, and a Barrett spokesperson did not reply to Commercial Property Executive’s request for information. However, according to data provided by CommercialEdge, the building is part of an EQT Exeter industrial complex.

READ ALSO: Industrial Momentum Slows Down

Specifically, the facility is Building 2 in the lessor’s Class A, three-building Exeter Logistics East campus. Completed last year, the warehouse totals 529,047 square feet and features a cross-dock configuration with 36-foot clear height, 145 trailer parking spaces, 111 dock-high overhead doors, 41 levelers, four drive-in ramped doors and 50- by 56-foot column spacing.

The facility will support direct-to-consumer e-commerce and omnichannel fulfillment, along with retail/B2B distribution and warehousing. In furtherance of that, Barrett intends to equip the building with such current tech as drones and autonomous mobile robots.

Established in 1941, Barrett works with clients in multiple industries, but has a focus on apparel and footwear, health and beauty, consumer packaged goods, and education. The firm has more than 25 locations across the U.S.; its first Dallas-area one was a 500,000-square-foot facility in Garland, Texas.

Slight chill in a big market

Across the Dallas-Fort Worth industrial market, vacancy rose year-over-year by 330 basis points to 8.7 percent, as supply continues to outpace demand, according to fourth-quarter report from Newmark.

Deliveries in 2023 totaled approximately 70 million square feet. Meanwhile, industrial leasing declined to 12.9 million square feet in the fourth quarter. Projects currently under construction are 32 percent preleased overall.

EQT’s industrial footprint in the metro amounts to more than 8.6 million square feet, according to CommercialEdge information. Last July, the firm acquired Forney Logistics Crossing, a 904,495-square-foot Class A industrial asset in Forney, Texas, from Stillwater Capital and Grandview Partners for an undisclosed amount. Newmark advised the sellers.

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Vero Capital, formerly known as Admiral Capital Group, along with Prime Finance, have closed on the equity recapitalization of a four-property office portfolio located across the Sun Belt.

The partnership gained access to more than $20 million of immediately available capital for leasing costs and capital improvements. Walker & Dunlop arranged a $108 million CMBS loan originated by Goldman Sachs and Argentic.

The ownership acquired the assets two years ago and signed more than 400,000 square feet in leasing agreements at the properties, also implementing various capex programs. Tenants across the portfolio include Samsung, Kimley-Horn and Associates and BAE Systems.

The almost 1 million-square-foot ensemble is located in Alpharetta, Ga., Plano, Texas, Raleigh, N.C., and Falls Church, Va. The portfolio boasts a weighted average lease term of 4.8 remaining years and a weighted average occupancy of 84.9 percent.

The two-building Parkway at Avalon measuring 197,000 square feet is one of the office assets recapitalized. The 15-acre Alpharetta campus came online between 2000 and 2001 and features a pair of six-story structures with 24,600-square-foot average floorplates and more than 800 parking spaces. Vero Capital acquired the asset from Velocis for $53 million, according to CommercialEdge information, with help from a line of credit originated by Column Financial.

Walker & Dunlop New York Capital Markets Managing Director Sean Reimer, Senior Managing Directors Aaron Appel, Keith Kurland, Jonathan Schwartz and Adam Schwartz, along with Senior Analyst Christopher de Raet arranged the deal.

Last year, Vero announced the $29 million overhaul of a 410,000-square-foot, two-building office complex in Scottsdale, Ariz. The company picked up the value-add property in 2021 from Velocis.

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