Duke Realty Builds 635 KSF Warehouse in Dallas
- Jun 07, 2018
Duke Realty Corp. is constructing a new 635,000-square-foot bulk distribution facility in Flower Mound, Texas, and has preleased 71 percent of the property to PPG Industries Inc., which will utilize 450,000 square feet as a distribution center for its architectural paints and coatings.
“We’ve owned the site for a little while, and this is one of the last good, 500,000-square-foot-plus industrial sites on the north side of the airport,” Jeff Thornton, Duke Realty’s senior vice president of Texas, told Commercial Property Executive. “This is truly an infill submarket where there’s no land available for future development. We’ve been holding the site looking for the right tenant and located that in PPG.”
A remaining 185,000 square feet of the building is still available for lease.
“We have it listed for lease and we’re bringing it to the market as speculative space,” Thornton said. “The market in Dallas has been so strong the last five to six years, that we believe we’ll release that space very quickly. Absorption for Dallas/Fort Worth has really been on a record-setting pace the last three years and tenant demand has been very high.”
The distribution facility will feature 36-foot clear heights, cross-docks and will incorporate state-of-the-art, modern features, including energy efficient lighting and exterior features such as landscaping upgrades.
A promising area
Located at 1001 Lakeside Parkway, the development will be situated in Duke Realty’s Lakeside Ranch business park, which is north of DFW International Airport. According to Thornton, the facility will offer exceptional highway access that will help enhance PPG’s ability to efficiently serve its customers in the southwestern United States.
Lakeside Ranch Business Park is one of more than a dozen industrial developments Duke Realty owns in North Texas. In fact, in the Dallas-Fort Worth area alone, Duke Realty owns, manages, or has under development more than 15.8 million square feet of industrial properties.
“The Dallas/Fort Worth Metroplex is the second-largest market for Duke Realty in terms of square footage, second only to our Indianapolis portfolio,” Thornton said. “We’re very active here and really like the portfolio given the buildings are all newer; it’s a relatively young portfolio. Given the growth of this area and the regional distribution-nature of this area, Dallas/Fort Worth is a great place going forward.”
The property is expected to be finished in May of 2019.
JLL’s Trevor Ragsdale, Craig Jones and Tom McCarthy brokered the transaction, while Duke Realty Vice President Randy Wood represented the company in the lease.
In May, Duke Realty acquired two industrial facilities totaling 119,431 square feet in Fullerton, Calif., for $22.8 million.
Image courtesy of Duke Realty Corp.