Yesterday evening I attended the North Texas Commercial Association of Realtors market update on the extremely vibrant south Dallas industrial market. There are so many exciting developments in South Dallas I thought it would be a good time to review what is occurring.
The bringing up of the southern sector of Dallas has been spearheaded by Dallas Mayor Mike Rawlings. For the last fifty years Dallas has grown north from downtown going straight north up to Richardson, Plano, McKinney and Allen.
After reviewing and old photograph from 1949. It showed Dallas and you can’t see Walnut Hill and Royal Lane. In fact they look like they were dirt roads. This picture is an example of just how much has happened in Dallas over the past fifty years. It has grown from a rural town to a major metropolitan area.
South Dallas Industrial Opportunity
On thing Mayor Mike Rawlings wanted to do is to get the South Dallas industrial development moving. If you think about it for industrial space you can drive twenty to thirty minutes from Downtown Dallas to get to industrial space in Richardson or Plano. Coppell and Flower Mound is thirty minutes. May Rawlings saw that you could go fifteen minutes south and there was a lot of undeveloped land that would be perfect for industrial development.
South Dallas industrial developments have delivevered 6.2 million square feet in 2014. That is the highest in a decade. The average asking rate has jumped .25¢ a foot. 238,000 square feet absorbed in 2015 just in the first quarter. The vacancy rate from 9% to 12 % because of recent deliveries.
A few big deals that started it off
- BMW 282,000 square feet in Prologis Park in 2012 (See Picture)
- January 2013 Ace Hardware 435,000
- Conn Appliance 321,000
- April 2103 Owens Corning 510,000 at Cross Point
- 262,000 at Prologis
- Loriel Paris 515,000 Ridge Logistic Center
- December Quaker Oates 1.2525,000 Square feet at Prologis Park
- Jane 14 1.565 Million Proctor and Gamble Dallport Trade Center
- 424,000 JC Penny March 14 renewed
- Georhia Pacific 1,000,000 Hillwood Commerce plus another 500,000
- Hyundai, Amazon and others
Some New Developments and Major Vacancies
- Turnpike 3 vacancies left. 54,000, 80,000 and 35,000 5,000,00 total
- Turnpike 25 has 135,000 square foot vacancy 30 foot clear with t5 lights Truck court 120 feet with additional parking. It is rail served by Union Pacific.
- Turnpike 29 Vacancy coming back in June. 594,000 square foot ESFR sprinklered. Also rail served by Union Pacific. Has t5 lighting with motion. Truck court is at 185′ minimum depth is 120′ 150 trailers on site. $3.15 Net with 1.20 in expenses.
- Turnpike West. New development. 14.6 acres Has frontage on Interstate 30 with direct access off the service road. 260,000 square feet with 130′ truck court and room for an additional 72 trailer slips. $3.60 Net with $4.00 in TI.
- Stone Bridge Development 196,000 Square feet in Stonebridge 9. 30 foot clear ESFR. $3.15 net $1.35 expenses
- Stone Bridge II off Daniel Dale. 700,000 square feet to deliver summer 2015. Stone Ridge 11 400,000 sf 32 clear ESFR truck courts 190′ 93 trailer slips. $3.45 net $1.35
There are many additional vacancies and developments that are currently in the South Dallas industrial market. Now is the time to move your company to this expanding industrial market and take advantage of the economic incentives being offered by Dallas Economic Development.