Absorption Uptick Shows New Construction Appetite
A healthy supply and demand balance is evident in DFW industrial with vacancy creeping higher, most notably in the North Fort Worth/Alliance submarket which is pulling interest from developers and tenants, especially for big box.
FORT WORTH—A sharp uptick in fourth-quarter industrial absorption shows an appetite for new construction, such as the mega-box at 1753 Chaplin Dr. This 705,955-square-foot distribution facility was completed in December 2018.
On behalf of one of its separately managed accounts, Transwestern Investment Group acquired the facility the same month, along with a 494,041-square-foot building at 15453 Wolff Crossing. Just three months later, CTDI leased the full building on Chaplin Drive.
“We are pleased to execute a full-building lease within three months of acquiring this state-of-the-art property,” said Richard Yeh, managing director at Transwestern Investment Group. “In addition to the building’s location and size, CTDI was attracted to the speed with which it could move in and become operational. It was a very efficient and collaborative lease negotiation process that took less than six weeks from start to finish.”
The property offers a 36-foot clear height and access to Interstate 35 West and US Route 287 via Texas State Highway 114. Located in the Alliance submarket, it is approximately 20 miles from Dallas/Fort Worth International Airport.
The Alliance submarket is home to a large master-planned mixed-use community developed by Hillwood. It is anchored by the Alliance Global Logistics Hub, which includes BNSF Railway and Union Pacific’s Alliance Intermodal Facility.
The Northeast Tarrant County/Alliance submarket has recorded significant activity this cycle, with 2 million square feet of industrial space currently under construction, according to market research from Transwestern Commercial Services. The high amount of speculative construction has pushed the overall vacancy rate above the Dallas-Fort Worth average.
“Overall, the Dallas-Fort Worth industrial market is still seeing robust activity. There’s a healthy supply and demand balance with vacancy creeping higher,” Yeh tells GlobeSt.com. “In the North Fort Worth/Alliance submarket, there is still a tremendous amount of interest from both developers and tenants. Big-box industrial is especially active.”
CTDI is an engineering, repair and logistics company for the communications industry. Specific activities to be performed at the newly leased facility are unclear as of now.
CBRE’s Nathan Lawrence and Krista Raymond are providing industrial leasing services on behalf of Transwestern Investment Group.