As one of the healthiest commercial real estate sectors in North Texas, it’s no wonder why so many new industrial warehouse projects are underway in 2020.
While many projects have already been identified, the Business Journal has uncovered four new projects that should break ground this year or have already. Two of the projects will be in Mesquite while the others will be in Fort Worth; one on the south side and one on the north side.
More than 1.5 million square feet coming to Mesquite
Ground broke this week on one of the larger projects of the five. A joint venture between Dallas-based Urban Logistics Realty and Crow Holdings Capital is underway with a five-building, 980,000-square-foot industrial park called Urban District 30. Located at the northeast corner of Interstate 30 and I-635 in Mesquite, the project’s buildings will range in size from 380,700 square feet to 130,000 square feet. The entire project will be built at once and as spec space, with Matt Dornak, Blake Kendrick and Drew Feagin of Stream Realty Partners handling leasing and management duties of the complex.
MYCON General Contractors is building the project, while GSR Andrade Architects has designed it. JLL arranged the capital for the project, including a construction loan from Comerica Bank. Though the cost of the project was not disclosed, multiple documents submitted to the Texas Department of Licensing and Regulation suggest that the entire development could cost over $26 million. More than 500 jobs are also expected to be generated from the project.
“The increasing tenant demand and limited supply of functional industrial space in northeast Dallas positions this development very well in the market,” said Dornak, vice president of Stream Realty, in a statement. “We are confident that the project will see fast success, proving to be a top-tier location for future tenants.”
Another 544,000 square feet of warehouse space has also recently broken ground in Mesquite. On a 45-acre plot along W Kearney Street, Dallas-based Dalfen Industrial is building its two-building East Dallas Logistics Center. Comprised of a 406,140-square-foot building and a 137,800-square-foot building, the project is estimated to cost about $20 million according to TDLR documents. Dalfen’s vice president of Development and Construction, Sean Wood, said in an email that the project should be complete by the third quarter.
Nearly 1.2 million square feet coming to in-demand South Fort Worth
Though North Fort Worth often makes headlines for new industrial projects and big leases, untapped demand in the south has led to some opportunistic development. One joint venture trying to take advantage of this demand is Los Angeles-area developer Majestic Realty Co. and local company Hickman Cos. The partnership is underway with three new warehouse buildings off Everman Parkway, which total nearly 1.2 million square feet. Once complete, the buildings will be part of a larger six-building, 1.8 million-square-foot industrial park, which is ultimately phase one of a 320-acre project. Majestic Senior Vice President Kyle Valley says two of the three buildings are spec while the largest, a 678,000-square-foot building, has been fully leased. The company declined to name the tenant.
Another 287,000-square-foot building in the park, which was completed last year, has also been fully leased to two different tenants; one of them being North Andover, Massachusetts-based Watts Water Technologies Inc. (NYSE: WTS). Valley says pent up demand and a lack of available product in South Fort Worth has driven interest in the project, along with the area’s available employment base. In an attempt to differentiate the development, Majestic is adding 5G capabilities and a trail system to the site. Potential rail service is also available via Union Pacific.
https://www.bizjournals.com/dallas/news/2020/01/15/industrial-projects-mesquite-fort-worth.html