Logistics Look to Locations for Leverage
The two-building 882,565-square-foot distribution center was chosen for its prime location in the midst of key logistics/distribution infrastructure, located 1 mile west of I-35, adjacent to Ft. Worth Alliance Airport.
FORT WORTH— The Fort Worth Alliance Airport was designed and developed in 1989 by Hillwood Development Company headed by Ross Perot specifically for air cargo and anchors the 26,000-acre AllianceTexas master plan. According to the AllianceTexas website, this region has been responsible for generating $74 billion in economic impact since its inception.
In a good example of location, location, location, and continuing its nationwide expansion of delivering large-scale institutional-quality industrial facilities, CT Realty is underway on the development of Westport Logistics Center. The two-building 882,565-square-foot distribution center is located in the Alliance submarket, one mile west of Interstate 35 and adjacent to the Ft. Worth Alliance Airport. The project was chosen by the Newport Beach, CA-based developer for its prime location in the midst of key logistics and distribution infrastructure.
“Strong distribution locations are a byproduct of good access to the logistics transportation infrastructure that supports the movement of goods–namely ports, rail, air and interstate highways,” Rob Huthnance, the CT partner responsible for Midwest and East Coast development and operations, tells GlobeSt.com. “Proximity to major population centers has become an increasingly high priority for logistics real estate users in the past six years due to the rapid growth in e-commerce. This site is valued for its direct access to a major Burlington Northern Santa Fe intermodal rail yard, one of the largest of its kind in the region.”
Westport Logistics Center consists of two distribution buildings measuring 677,249 square feet and 205,136 square feet. The buildings offer either single-sided or cross-dock loading with ample loading bays, clear heights of 32 feet or 36 feet, 185-foot truck courts and build-to-suit office spaces.
“This project is ideal for logistics users and is practically next door to the BNSF intermodal railyard, which handles 835,000 annual TEU lifts, plus dedicated air cargo facilities at the Fort Worth Alliance Airport,” said Huthnance. “The location of an Amazon fulfillment center adjacent to our site speaks to the established location attributes of this project.”
The project, CT’s fourth major development in the Dallas/Fort Worth metro, is being built in a joint venture with Mitsubishi’s Diamond Realty Investments. Westport Logistics Center is represented by J. Scott Moore and Bob Scully of CBRE.
First quarter 2019 is the DFW industrial market’s 34th consecutive quarter of positive absorption, according to a CBRE report. And, a Cushman & Wakefield study reported the DFW area has 30.1 million square feet currently under construction.
Closely tracking/analyzing population and market growth is vital to understanding market dynamics, as these metrics are often key indicators for supply chain end-users involved in the site selection process, according to a JLL article shared on NAIOP’s blog. Developers and investors are increasingly looking for opportunities and properties close to population hubs as a strategy to meet growing customer expectations for same- and next-day deliveries. Typically, supply-chain end users are looking to build or grow footprints in these top 10 tier-one regions in order to access large populations: Atlanta, Chicago, South Florida, Dallas, Seattle, Eastern and Central Pennsylvania, Houston, California’s Inland Empire, Los Angeles and New Jersey, says JLL.
“CT’s growth strategy is focused on the development, ownership and management of a portfolio of logistics projects in high demand tier one markets throughout the US,” adds Huthnance.
CT has developed more than 2 million square feet of distribution space in the market during the last few years in DFW, both on its own account and with affiliates. On a broader national scale, CT has completed or is under construction on another 7.6 million square feet of logistics centers in Northern California, Atlanta, Illinois, Indiana and New Jersey, and has an additional 20 million square feet of industrial space in its development pipeline.