DALLAS-The Dallas/Fort Worth industrial market ranked ninth in the nation in leasing activity with 2.6 million square feet taken down during the first quarter, according to a recent report from Cushman & Wakefield. However, that total is a whopping 54.7% decrease compared to the same period last year.
Several mid- and large-size industrial transactions took place during the first quarter, and leasing activity continued to heat up during the second quarter, according to Dave Anderson, an executive vice president with CB Richard Ellis’ Dallas office who negotiated one of largest industrial leases so far this year with American Standard. The company leased a 626,100-square-foot warehouse building from Duke Realty Corp. in Hutchins.
“There are at least four companies requiring similar size space in the DFW market right now looking to make leases this year,” Anderson tells GlobeSt.
In fact, a number of companies that have been looking in the market for a while have pulled the trigger. The Medve Group, for example, leased 117,000 square feet at 1411 W. Walnut Hill Lane in Las Colinas to relocate their headquarters to the DFW area. Larry Robbins of Capstone Commercial represented the tenant, while Allen Gump of Colliers International represented the landlord.
Robbins tells GlobeSt.com that The Medve Group searched for five months and considered 10 buildings before making a decision. When the firm began the process, it had quite a few options, but those options were whittled away as time went on and leased by other entities.
Leasing activity is not concentrated in any one submarket in the Metroplex, but Fort Worth has experienced its fair share of leasing activity.
For example, LG Electronics leased an additional 66,433 square feet from Hillwood in the Commerce Center 4 building, which is part of the 17,000-acre AllianceTexas development. With the expanded lease, LG Electronics now occupies the entire 165,402-square-foot building, which is located at 2153 Eagle Pkwy.
Steve Aldrich, vice president of Hillwood Properties who brokered the deal on behalf of the landlord. Seth Kelly and Ryan Keiser of CB Richard Ellis represented LG Electronics.
Additionally, National Presort Inc. leased a 100,875-square-foot, class A office and warehouse building in Fort Worth’s CentrePort Business Park to serve as its new headquarters and operations hub.
National Presort Inc., a mail-sorting company, will relocate its headquarters and sorting operations from 3901 La Reunion Pkwy. in Dallas. The Fort Worth building will house 150 National Presort employees at 14901 Trinity Blvd. in Fort Worth, which has been vacant about 18 months.
Todd Lambeth with Bradford Commercial Real Estate Services represented the landlord, BCED Investments LLC. Art Daboub of Dallas’ Fortune Realty Advisors represented the tenant in the deal.
Despite these larger leases, other industrial markets outperformed Dallas/Fort Worth during the first quarter. Greater Los Angeles came in first with 8.2 million square feet leased, followed by Southern California’s Inland Empire, Chicago, Atlanta and Houston.