Pinnacle Park I and II were purchased by Cohen Asset Management (credit: Bob Moore Construction).
DALLAS—Dallas-Fort Worth added 122,000 jobs last year, a growth rate of 3.4% or a whopping 334 jobs per day. Moreover, the manufacturing industry gained 7,600 jobs for an annual growth rate of 2.8%. The region's unemployment rate for DFW was 3.4% compared to Texas' 4.1% and the US' 4% (not seasonally adjusted).
This frenzied pace has not slowed down, resulting in numerous acquisitions in the industrial category. A recent transaction involved two class-A industrial properties in the Pinnacle Industrial Park acquired by Cohen Asset Management Inc. for an undisclosed price.
The buildings total more than 1.33 million square feet and were 100% leased at the time of the sale. Constructed in 2001, the two properties are located in one of the region's most successful warehouse and distribution markets, just south of Interstate 30 and west of downtown.
Pinnacle Park I at 3700 Pinnacle Point Dr. is a 1.01 million-square-foot bulk industrial distribution building on 47.48 acres. It has 178 exterior docks, six drive-in doors, cross docks and 32-foot ceiling heights. Pinnacle Park II at 3801 Pinnacle Point Dr. comprises 327,600 square feet on 13.44 acres. The industrial warehouse property features 62 exterior docks, three drive-in doors and 30-foot ceiling heights.
Transwestern senior vice president Steve Rowland provided acquisition services on behalf of Cohen.
“With an outstanding in-fill location and rents on the ascent, this high-quality project offered the buyer a unique opportunity to grow its footprint in Dallas-Fort Worth's vibrant industrial market,” said Rowland. “Cohen's goal is to create long-term value while driving near-term returns. This prominent fully leased asset achieved both objectives.”
Cohen now has more than 3 million square feet of industrial holdings in the DFW metroplex. Much of the activity is being driven by e-commerce users as the scramble for product continues unabated, says Rowland.
“E-commerce tenants are a driving factor for positive absorption in all DFW submarkets, particularly those where last-mile distributors covet central locations, such as the case for the Pinnacle property,” Rowland tells GlobeSt.com. “Likewise, e-commerce tenants are seeking submarkets offering larger blocks of new space primarily around the DFW airport, north of Fort Worth in Alliance or in South Dallas where there are numerous developments from which to choose.”
Overall net absorption in the second quarter recorded a positive 4.5 million square feet. Warehouse and distribution properties accounted for the majority of the total with 3.7 million square feet, followed by flex with 742,500 square feet and manufacturing properties with 96,800 square feet.
Submarkets that recorded the highest amount of positive absorption in the second quarter included the Great Southwest with 2.3 million square feet and North Fort Worth with 941,500 square feet. South Stemmons and Northeast Dallas recorded the largest negative absorption for the second quarter.
Deliveries picked up in the second quarter to 1.5 million square feet after a small dip during the first quarter. DFW's construction pipeline remains strong, setting a new record high of 25.6 million square feet of industrial space under construction, according to a second quarter industrial report by Transwestern.
Leasing activity dropped in the second quarter to 5.9 million square feet, compared to the first quarter's 9.9 million square feet. Leasing activity was led by the warehouse/distribution sector with 4.5 million square feet in the second quarter, a significant decrease from the same quarter last year of 15.4 million square feet.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
