Perot Develops 5M SF of Logistics in Five Years

DALLAS—E-commerce demand continues to weigh in on industrial development in the metroplex, and nowhere is this more evident than at DFW International Airport. In the past few months, Perot Development Company completed Logistics Centers 6 and 7 at the north end of DFW Airport, and recently received approval from the airport board of directors for ground leases on 196 acres at the east end of the airport.

The site fronts the President George Bush Turnpike (SH 161), adjoins the DART Orange Line and is directly across the freeway from the DART Belt Line station. This location is accessible via two freeway exits, Gateway Drive and Belt Line Road off SH 161, with proximity to FedEx and UPS regional hubs, and a USPS bulk mail center, along with air cargo areas and major freight forwarders at the airport.

The Irving property will be the site of Perot Development’s DFW Park 161 master-planned project encompassing four global e-commerce hubs known as Logistic Centers 8, 9, 10 and 11, totaling more than 2.4 million square feet. Including the four new buildings, the company will have developed nearly 5 million square feet in global e-commerce hubs at the airport during a five-year period.

A groundbreaking of these buildings is anticipated by March 2019, and all are expected to be available for lease by 2020. The facilities will provide all of the key elements tenants require for efficient office, showroom and distribution facilities. Each offers a location convenient not only to the airport and SH 161, but also to other key transportation thoroughfares such as Interstate 635, Interstate 35, SH 114 and SH 121.

Logistics Center 8 will be a 1.422 million-square-foot facility on 102.07 acres, with a minimum 40-foot clear height, 322 dock doors, 202 trailer storage positions and 803 parking spaces. Logistics Center 9 will be a 648,960-square-foot facility located on 50.31 acres, with a minimum 36-foot clear height, 160 dock doors, 83 trailer storage positions and 449 parking spaces. Logistics Center 10 will be a 156,000-square-foot facility located on 15.96 acres, with a minimum 30-foot clear height, 45 dock doors, 50 trailer storage positions and 187 parking spaces. Logistics Center 11 will be a 182,000-square-foot facility on 28.02 acres, with a minimum 30-foot clear height, 45 dock doors, 48 trailer storage positions and 272 parking spaces.

The buildings will incorporate the latest technology to maximize the project size and functionality, and offer benefits such as a strategic central DFW metroplex location for access to showrooms, customer pick-up and deliveries, and access to labor. A triple Freeport inventory tax exemption for Dallas County, Carrollton/Farmers Branch ISD and Irving (pending city council approval) will be utilized, along with foreign trade zone benefits. The facilities are being built on a speculative basis and expected to generate strong interest in the marketplace.

“We are excited about the prospect of adding these major global e-commerce hubs to the stable of logistics centers we have previously developed around DFW International Airport, North Texas’ powerful economic engine,” said Pat Perot, CEO of Perot Development. “The region’s continued dynamic growth has created an incredible demand for state-of-the-art logistics facilities such as these. We greatly appreciate the support and partnership we have received from DFW International Airport and the city of Irving in laying the groundwork for DFW Park 161.”

Halff Associates is serving as the project architect and civil engineer, and Peinado Construction will be the general contractor.

“What’s noteworthy about DFW Park 161’s four planned logistics centers is that they offer all of the key elements today’s tenants demand to optimize their office, showroom and distribution facilities for maximum efficiency. Perhaps most important, as with any real estate, is the site’s central, strategic location, right in the midst of the metroplex’s massive population base that e-commerce firms seek to serve with just-in-time, last-mile deliveries,” Perot tells GlobeSt.com. “Being right at DFW International Airport, of course, also offers ready access to one of the world’s leading airports with tremendous logistics support in the form of air cargo areas and major freight forwarders, plus convenient and flexible access to a number of key transportation thoroughfares in virtually every direction. On top of that, throw in foreign trade zone benefits and the availability of triple Freeport inventory tax exemption, and you’ve got a really compelling offering for tenants.”

Perot Development’s previously developed global e-commerce hubs at DFW International Airport are Logistics Center I (completed in 2014 and now an Amazon Fulfillment Center) consists of 1.053 million square feet on 60.18 acres in Coppell, TX; Logistics Center II (completed in 2015 and now an Amazon Fulfillment Center) consists of 1.04 million square feet on 60.47 acres in Coppell, TX; Logistics Center III (completed in 2016 and now leased to Siemens) consists of 119.9 million square feet on 9.5 acres in Irving, TX; Logistics Center IV (completed in 2016 and now leased to Coca-Cola) consists of 143,950 square feet on 8.84 acres in Irving, TX; Logistics Center V (completed in 2016 with Aramark Refreshments now the major tenant) consists of 116,072 square feet on 8.95 acres in Irving, TX; Logistics Center VI (completed in 2018 and now available for lease) consists of 67,500 square feet on 5 acres in Irving, TX; Logistics Center VII (completed in 2018 and now available for lease) consists of 74,375 square feet on 5.26 acres in Irving, TX.

Perot Development also developed other facilities at DFW International Airport such as Aviall Services Inc.’s headquarters and global distribution center totaling 280,000 square feet, Dallas Airmotives’ jet engine repair and testing facilities totaling 228,000 square feet and the 404,500-square-foot warehouse and distribution center known as DFW International Commerce Park I.

Third quarter marked the 32nd consecutive quarter of positive absorption for the Dallas/Fort Worth industrial market, where occupiers took down nearly 4.2 million square feet, bringing the year-to-date absorption total to 14.1 million square feet, according to a CBRE third quarter industrial report. The market-wide vacancy rate increased a slight 21 basis points during the quarter and was 6% by quarter’s end.

The industrial construction pipeline contracted to slightly more than 20.6 million square feet and starts during third quarter totaled 4.7 million square feet. New product totaled nearly 6.5 million square feet and was 40.4% pre-committed, says CBRE.