DALLAS-Armed with a 2006 plan to add 907,600 sf in the region, ProLogis next week will break ground on the first of three industrial buildings on this year's construction docket. The Denver-based developer tentatively plans to begin the balance of the spec space in July and August.
ProLogis will begin with the 114,600-sf Freeport Corporate Center IV, a six-acre development that will build out the balance of a 63-acre park started nearly a decade ago in the 9300 block of North Royal Lane. The existing inventory, totaling nearly 1.1 million sf, is fully leased.
The Irving park's one undeveloped site--6.5 acres fronting Regent Boulevard--has been "softly" marketed for the past year at close to $6 per sf to office developers, says Joe Rudd, ProLogis' marketing representative in Dallas. "The value justifies it being sold for office versus being developed with industrial space," he says.
Rudd tells GlobeSt.com that he already has "several prospects" eyeing the entire Freeport Corporate Center IV. Designed by Meinhardt & Associates of Dallas, the 19 dock-door structure, bearing a $4.65 per sf net quote, will deliver in late summer.
ProLogis' remaining plan for this year calls for back-to-back starts in Coppell and Lancaster. In July, the developer will kick off work on the 143,000-sf Freeport Corporate Center VI, its first building in the 14-acre Gateway Business Park on land inherited in last year's buyout of Catellus Corp. The 40 dock-door building will go up on a 7.8-acre tract. "Its location is just superior," Rudd says, citing the initial quote will be $3.65 per sf. Construction is scheduled to wrap up in late December or early January 2007.
And if ProLogis holds to its calendar, it will break ground in August on a 650,000-sf warehouse on 33 acres, the first product for the 205-acre ProLogis Park 20-35 in Lancaster. ProLogis and Dallas-based Argent Property Co. plan to build 3.3 million sf of office, showroom, warehouse and light industrial space in a seven- to 10-year period on the South Dallas land. The first building is tagged at $2.85 per sf, with delivery ticketed for February 2007.
Rudd says the 2006 agenda isn't overly aggressive in relationship to ProLogis' 21-million-sf portfolio in Dallas/Fort Worth. "If you add it all up as a percentage of what we have, it's not taking on too much of a risk," he says.
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