Avion Business Center AvionBusiness Center is located north of Belt Line Road between I-35 andDallas North Tollway.

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DALLAS—Texas-based real estate investment firm Fort Capital hasexpanded its industrial property portfolio with the acquisition ofthree class-B industrial/flex properties: Commerce Business Parkand 4040 W. Royal Lane in Irving, and Avion Business Center inCarrollton. The properties total nearly 350,000 square feet.

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"These assets offered Fort Capital the opportunity to acquireinvestments in two high-growth highly active submarkets of DFW,"said Hunter Harrison, vice president of investments with FortCapital. "Due to the lack of new supply in these areas paired witha high demand, we believe well-located flex products like CommerceBusiness Park, 4040 W. Royal Lane and Avion Business Center will bean increasingly attractive and cost-effective alternative."

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Commerce Business Park includes 33 flex office buildingstotaling 179,049 square feet on a combined 18.64 acres. 4040 W.Royal Lane offers 92,051 rentable square feet across seven flexoffice suites. Both properties are less than one mile northeast ofDFW International Airport in the DFW Airport submarket.

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These flex office spaces are part of an institutional-qualityasset in a strong infill market with high barriers to entry. Giventhe location in the heart of the metro with access to keyinfrastructure, the assets are positioned to deliver strongperformance in the near term with substantial long-term upside,GlobeSt.com learns.

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Avion Business Center, located north of Belt Line Road betweenInterstate 35 and Dallas North Tollway, consists of three flexbuildings totaling 77,339 square feet. This area within theNorthwest Dallas submarket provides access to major populationcenters within the DFW metro. The 16 total suites provide valuablediversity in the ratio of warehouse to office space with keyfeatures including the number and type of loading doors.

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"We feel there is a lack of supply with regards to well-locatedclass-B industrial properties," Harrison tells GlobeSt.com. "Theseassets we've acquired are in irreplaceable locations and withconstruction costs as high as they are, the replacement costs ofthese assets make them uneconomical to rebuild."

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Net absorption in fourth quarter 2019 had large gains from theprevious quarter, with more than 1.48 million square feet of spacetaken up, yielding 3.49 million square feet total for 2019. This isthe third-highest year of net demand for the decade, according to areport by CBRE.

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Vacancy dropped only slightly in fourth quarter 2019 despite thelarge positive absorption figure. This is largely due to 1.9million square feet of competitive inventory introduced to the DFWmarket and tenant appetite for efficient high-quality space, saysthe report.

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Lisa Brown

Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.