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Texas Distribution, Logistics Holding Up Under Economic Strains

DALLAS-It's not a phenomenal year, but the distribution and logistics market is holding its own in growth. Intermodal capabilities, mortared by an above-average freeway network keep the ball rolling, say executives in Dallas and Houston.

By Connie Gore | Updated on August 13, 2001

DALLAS-Talk to any Texas broker and you’ll hear that the Lone Star State is a land of plenty. Dallas-Ft. Worth, in particular, is benefiting from other states’ shortfalls, from electricity to low fuel prices to an above-average freeway network.

“I’ve not seen anyone make a distribution decision based on fuel pricing,” Jon Napper, Panattoni Development Co.’s Texas partner, tells GlobeSt.com. It’s the North Texas’ middle-of-the-country positioning that has it reaping the benefits as nationwide distributors look to consolidate. As a result, big boxes are in. Indianapolis-based Duke Realty has 900,000 sf under construction; Dallas’ Champion Partners and Argent Property Co., each are bringing 600,000 sf out of the ground; and the Sacramento-based Panattoni has a little more than one million sf in two buildings rising. All, says Napper, are spec in a market already boasting 400 million sf of industrial space.

What Napper is noticing is that construction prices, more notably subcontractors, rates are slicing 10% off going rates in the wake of a construction slowdown, here and elsewhere. “I’ve seen numbers that shock me,” confides Napper, “but it’s because people want work.”

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