Exel Pushes Its Freeport Footprint Another 267,000 SF

As the troops know, a "no vacancy" sign on a product line is a signal the Indianapolis-based Duke will be on the prowl for more land to feed more deals. Jeff Turner, senior vice president of Duke's Dallas group, divulges to GlobeSt.com that a 50-acre tract is close to bagging on the northern periphery of Grand Prairie where it abuts Newport Beach, CA-based Koll Development's CentrePort near the Dallas-Fort Worth International Airport.

Exel's latest deal is for Freeport VII, positioned just a block west of its 153,165-sf distribution hub in Freeport IX in the developing 46-acre Freeport North Industrial Park. The signing takes Freeport VII to 65% occupancy, but that will jump to 100% in a month when brokers close on the balance, 116,000 sf to a single-tenant user, Turner says.

Exel's Freeport VII move-in is set for Aug. 24. The facility has been labeled as its DFW North American Logistics Operations, but it is earmarked to be a distribution point for a new contract with an existing logistics client, a part of the deal that's being kept under wraps.

The near back-to-back leases represent a vote of confidence in the product and the presenter, Turner says. The UK-based Exel, with US global freight operations based in Chicago, is a Duke tenant in Cincinnati, Indianapolis and St. Louis. The pact three months ago was a first with the Dallas team. "We proved ourselves," Turner says.

Dan Cook of Cushman & Wakefield of Texas Inc.'s Dallas office negotiated the lease for Exel while Duke's senior leasing rep, Bob Rice, handled its end of the talks. On the average, Duke's Freeport space goes for $3.10 per sf to $3.35 per sf net annually.

The plan going forward is "to try and keep the portfolio filled, fill in some holes, focus on some build-to-suits and continue to look for new land in the Dallas-Fort Worth metroplex," Turner says. Duke controls nearly 100 acres strategically position in the region. The tract under contract in Grand Prairie neighbors five other Duke-owned projects.

Building, though, these days will be more of the build-to-suit variety than the spec product now filling up in Freeport. Turner says the Dallas team has made the short lists for "three or four good prospects," ranging in size from 200,000 sf to 800,000 sf--and all eyeing Freeport North's undeveloped land.