The partnership talks were originated by Pax Glenn of PaxonGlenn Commercial in Dallas. "He thought we'd be a good match," saysJeff D. Thornton, senior vice president of the Dallas operationsfor Indianapolis-based Duke. The land fronts Texas 664, a four-laneartery intersecting Interstate 35. Duke's new development site isless than one mile east of the interstate interchange. It's alsobisected by Omaha-based Union Pacific Corp.'s main line leading toits intermodal yard in the Dallas Logistics Hub.

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Thornton tells GlobeSt.com that Duke has a one-year purchaseoption to the site, but spec or a build-to-suit before the clockstops is practically a certainty. "I think we'll find someonebefore a year's up," he says. "It might not be 1.2-million-sf deal,but I think we'll find a 400,000-sf to 500,000-sf deal by then."GSR Andrade Architects of Dallas is site planning and designing thespace. A quoted rate hasn't been set, but Duke's typical bulk rateis $3.25 per sf plus $3 per sf for tenant improvements.

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Thornton says the strategy is to draft off the Nafta Highwaytrade corridor, exactly as Duke did in the northern tier of DallasCounty. The dwindling close-in land supply logically has forceddevelopers toward the outer rings to find cheap dirt. In Red Oak'scorridor, land hovers $1.50 per sf.

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Thornton says Red Oak IDC and town leaders were intent onforming a partnership with a developer who intended to build outthe site and not flip it. Duke's black book of tenants nationwidehelped to shore up the decision, he adds. "They want to tap intoour inventory of tenants as possible future tenants for this site,"he explains.

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From Duke's perspective, Thornton says demand is pushing towardits new site although it's still early in the game. "It's coming tous, but it is one of our farthest sites to the south," he admits."We've gone down to a pioneering market."

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