Share
A review of D-FW's top real estate stories and deals
 
Steve Brown's Real Estate update
06/15/2021
Prefer the online view? It's here.
(Nathan Hunsinger / DMN File 2018)

THE GRAND OPENING
D-FW will top the country in warehouse building and leasing, new forecast says
By Steve Brown | Real Estate Editor

Dallas-Fort Worth for the last few years has been one of the country's hottest warehouse and distribution building markets with major expansions by e-commerce companies and consumer products firms.

A new forecast says that D-FW will lead the country in both industrial building demand and construction during the next two years.

North Texas' net industrial leasing will total more than 50 million square feet through 2020, according to the report by commercial property firm Cushman & Wakefield.
That's more industrial demand that the country's previous top warehouse market, the greater Los Angeles area of southern California.

And it's more than 10 percent of the total 495 million square feet of net warehouse leasing Cushman & Wakefield expects nationwide.

In 2018, net warehouse leasing in the D-FW area totaled almost 23 million square feet - the fourth year in a row that the area has surpassed 20 million square feet of industrial building absorption.

And almost 27 million square feet of new warehouse space was completed in D-FW last year.

Cushman & Wakefield is predicting that in 2019 and 2020, another 52.5 million square feet of warehouses will be built in D-FW -- more than any other U.S. metro area.

"With the current tenant activity in the market -- tracking 25.2 million square feet of active tenants in D-FW -- we are optimistic and excited about the prospects of 2019," Cushman & Wakefield's North Texas executive managing directors Kurt Griffin and Nathan Orbin said in the report. "At the end of 2018, the Dallas-Fort Worth industrial market's 741.3 million square feet of inventory is the third largest in the U.S., behind only Chicago and Los Angeles.

The Dallas-Fort Worth industrial market finished 2018 with the nation's second highest net absorption behind only the greater Los Angeles area, they said.

ADVERTISEMENT
CHART OF THE WEEK

The North Texas home market has been red-flagged by analysts for more than three years because of rapid home price increases.

Only the Las Vegas home market is considered more overheated than D-FW in the latest Fitch Ratings report.

"Home prices in roughly 17 percent of the country's metropolitan areas are more than 10 percent overvalued," said Fitch Ratings managing director Grant Bailey. "Housing inventory hit its highest level in over eight years, signaling an easing of tight supply and a further slowdown in home price growth."
The planned mixed-use project surrounds a new public plaza. (Frisco Economic Development Corp)
DEAL OF THE WEEK

Frisco officials have approved updated plans for a mixed-use development on the Dallas North Tollway.

Square footage: Almost 350,000 square feet of office space and more than 100,000 square feet of retail space.

Location: Just south of Frisco's Dr Pepper Ballpark on the east side of the tollway at Ikea Drive.

Background: Frisco's planning and zoning commission has given the go-ahead for the Roughrider Plaza project's layout, which includes a 311-room hotel, three office buildings and four retail buildings surrounding a new public park.

Tom Gaglardi is buying the hotel site from the Frisco Community Development Corp., which owns the entire 14-acre development site.

"I really like the fact that this area is going to be developed," Frisco plan commissioner Edward Kelly said. "I think this is a good design.

"I like the fact it has walkability around the ballpark."
FIVE STORIES

1: Dallas developer, City Hall kill land-swap deal for new North Oak Cliff apartments.

2: Ownership in downtown Dallas' AT&T Tower is up for sale again.

3: Shannon Wynne, who made Dallas hip, now just wants to make living here affordable.

4: West Dallas' popular Sylvan | Thirty complex is for sale.

5: Most Dallas-area neighborhoods saw fewer home sales in 2018.
ELSEWHERE

A longtime family-owned business has secured a new source of funds to expand its portfolio inside and outside of Texas.

Houston-based Welcome Group signed an agreement for up to $300M in growth capital from an investment fund managed by New York-based Almanac Realty Investors. The funds will allow Welcome Group to expand its investment activity focused on acquisitions, build-to-suits, value-add and spec development of industrial and office properties, Welcome Wilson Jr. said in a release.

Founded by its current chairman, Welcome Wilson Sr., a well-known Houston real estate developer, Welcome Group has been around for decades. His sons help run the day-to-day operations. Welcome Wilson Jr. is the president and CEO, and Craig Wilson is the firm's executive vice president and chief operating officer.

-Bisnow.com
FEATURED PROPERTY SALES

International Association of Venue Managers Inc. has sold a 37,069-square-foot, 2-story office building on 4.4 acres at 635 Fritz Dr. in Coppell to investor Tanam LLC. Erik Blais and Richmond Collinsworth of Bradford Commercial Real Estate Services brokered the sale with Ben Appleby of Paladin Partners.

A family trust has purchased the Victory Shops at Riverside II shopping center at 6451 Riverside Drive in Irving. Built in 2017, the retail property was 100-percent occupied at time of sale. Strive Real Estate brokered the transaction.

Dallas-based Westmount Realty Capital has sold the Westmount at the Colonnade apartment community located at 2815 Osler Drive in Grand Prairie. Westmount acquired the property in 2015 and did a $1.4 million renovation. Constructed in 2001, Westmount at the Colonnade has 192 rental units on an 11.19-acre site.
FEATURED PROPERTY LEASES

Ace World Advantage LLC has expanded its industrial lease to 7,325 square feet at 1000 Post & Paddock Ln in Grand Prairie. Corby Hodgkiss at Mercer Co. negotiated the lease.

Hanover Services Group leased 4,874 square feet of office space in Knox Park Village located at 3001 Knox Street in Dallas. Curt Linn and Walker Lafitte of Avison Young
negotiated the lease with Tommy Nelson and Alexandra Cullins of CBRE

Total Restoration Ministries leased 4,725 square feet of commercial space at 500 - 900 North Coit Road in Richardson for five years. John Morgan of Hartman Income REIT negotiated the lease.
ABOUT THIS NEWSLETTER

We've revamped this weekly real estate newsletter and we'd like your feedback. Send comments or questions to Real Estate Editor Steve Brown or Business Editor Paul O'Donnell. We also send out a weekday newsletter with the top business headlines. If you like this newsletter, please share it with a friend and consider subscribing to our other newsletters here.