JV Plans 600,000SF Industrial Project at DFW Airport
- Jun 06, 2008
In one of the hottest industrial submarkets in the Dallas-Fort Worth area, a joint venture between Dallas-based Jackson-Shaw and Chicago-based ORIX Real Estate Capital breaks ground Wednesday on a multi-phased flex/warehouse project on the borders of Dallas Fort Worth International Airport. The development (pictured) will consist of nine buildings containing nearly 600,000 square feet of space. Phase I includes five buildings with more than 380,000 feet of space. MYCON General Contractors will handle construction and Dallas-based Stream Realty is responsible for leasing. During the first quarter of 2008, a wave of new construction hit the market as developers added nearly 5.5 million square feet of new industrial product to the Dallas/Fort Worth Metroplex, according to a first quarter report from Grubb & Ellis Co. But the developers are betting that the pace of new development will slow as credit for new projects continues to dry up. “We are big on the timing because of the slowdown of the capital markets and due to the credit crunch,” Jason Nunley, vice president of develoment for Jackson-Shaw, told CPN. “It is slowing the velocity of new starts. So, the time to bring product to market is good.” Nunley said the fully speculative first phase of 380,000 square feet should be ready within nine months.Despite the slowdown in leasing velocity seen throughout the Metroplex, the DFW Airport Submarket still managed to record the largest gain in tenancy in the first quarter, posting 595,233 square feet of net absorption, according to the report. This gain was enough to lower vacancy by 50 basis points down to 11.7 percent. Additionally, the submarket has the third largest construction pipeline in the area with 1.7 million square feet of warehouse space in the works and set to deliver over the next several quarters. Jackson-Shaw, a national real estate development company headquartered in Dallas, has completed more than 38 million square feet of development since its founding some 37 years ago. The firm is active in the development of a variety of project types, including office, industrial, mixed-use and hospitality.