OHL Renews, Expands Space to 591 KSF in South Dallas
- Sep 20, 2012
Ozburn-Hessey Logistics, one of the world’s largest third-party logistics companies, has expanded and renewed a lease for 591,000 square feet of space at 3700 Pinnacle Point Drive in Pinnacle Park in Dallas, CBRE announced yesterday. The expansion adds nearly 200,000 square feet to the original lease, and as of now OHL leases a total of 1.13 million square feet at Pinnacle Park. The lease’s value and terms were not disclosed.
Ann Huntington, a senior vice president with CBRE Dallas, and Doug McDowell with ProVenture, an OHL affiliate, represented OHL. Toby Rogers of Hillwood Investment Properties, Dallas, represented the landlord, Bentall Kennedy.
OHL currently operates more than 130 distribution centers and employs nearly 7,000 people.
The company first moved into Pinnacle Park in 2001 with only 81,250 square feet, Huntington told Commercial Property Executive. Their current operations, she said, encompass the entirety of one building and parts of two others there.
In addition, Huntington said, OHL leases 336,000 square feet in Wilmer, just south of Dallas.
The Dallas–Fort Worth industrial market’s average vacancy rate is 9.5 percent, down from 10.1 percent in the first quarter, David Eseke, an associate at the Cassidy Turley office in Dallas, told CPE. Year-to-date net absorption of about 4.7 million square feet was driven mostly by the Great Southwest Industrial District (GSW) and DFW Airport submarkets.
“South Dallas continues to be the ‘hot spot’ for potential BTS and spec development,” Eseke said, “due to a lack of land sites in North Dallas/GSW. Corporate America is hesitant to move HQ operations to South Dallas, due to a lack of white-collar labor, but traditional distribution centers with minimal office are much more likely.”
At the moment, Eseke said, there are about 4 million square feet of BTS requirements circling South Dallas, which, along with the tenants’ particular specifications, is largely responsible for the lack of spec development there.
These tenants include L’Oreal, which just announced plans for a 513,000-square-foot facility. Two other big-name tenants asked to remain confidential. Specific needs for these spaces vary, but include free-span space, extra-tall ceiling heights or more parking than usual.