Amazon Inks Long-Term Lease in Dallas
- Feb 05, 2020
Dalfen Industrial gives Amazon a helping hand in the e-commerce giant’s ongoing expansion of its U.S. footprint with a new lease agreement at Eastpoint Distribution Center in Dallas. Dalfen Industrial, owner of the approximately 419,600-square-foot facility, signed Amazon to a 10-year lease of the property.
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Carrying the address of 8901 Forney Road, Eastpoint sits across from a Union Pacific Intermodal Hub in the East Dallas submarket. Dalfen has owned the property, originally developed in 1987, since acquiring it in a $14.4 million transaction in 2017. The purchase included a 12-acre adjacent parcel of land, which the company now plans to use to accommodate Amazon’s van, truck and car parking requirements.
Dalfen relied on Matt Dornak and Ryan Wolcott of Stream Realty for representation in the lease deal, while Amazon turned to Ryan Keiser and Dan Mulford of CBRE. The e-commerce giant took occupancy of the last-mile facility in September 2019, a few months after it had been vacated by the previous tenant, Shippers Warehouse Inc.
Amazon has multiple leased or owned fulfillment centers in Texas, where it has invested in excess of $10 billion in facilities, infrastructure, a 253-megawatt wind farm and employee compensation since 2010. The company’s properties include a 1 million-square-foot fulfillment center in Katy, just outside of Houston, and another 1 million-square-foot facility in Coppell in the Dallas-Fort Worth metroplex.
Beyond the Lone Star state, Amazon has announced a bevy of new fulfillment centers, including plans for a 1.4 million-square-foot property in Deltona, Fla., near Orlando and a 1 million-square-foot facility in DeSoto County, Mississippi, the company’s second fulfillment center in the state. And even more facilities are on the horizon in 2020. “We grew the square footage for fulfillment and transportation by 15 percent each of the last 2 years, and we look ahead and see a step-up in that this year as we start to build more capacity for the one-day,” Brian Olsavsky, CFO of Amazon, said during the company’s fourth quarter 2019 earnings conference call on January 30, 2020.