Two Tenants Bring Frisco Building to Full Occupancy

FRISCO, TX—The new 160,000-square-foot development in the Star Corporate Center (previously Frisco Park 25), a 216-acre master-planned business park, has achieved full occupancy, according to Stream Realty Partners and Cabot Properties Inc. Cabot Properties broke ground in January 2018 and within six months of construction completion, the building was fully leased to two national-credit tenants.

The property will function as PowerSecure Lighting’s corporate headquarters. As a provider of LED lighting products, PowerSecure will serve as the anchor tenant totaling 75,000 square feet within the facility. The rear-load building will also house local distribution for an undisclosed national retailer.

“The demand and robust customer interest for first-class deed-restricted industrial facilities of this scale and quality in North Texas by far outpaces supply,” said Bob Hagewood, senior vice president of Stream. “Being able to fully lease a space such as this in less than a year is a real testament to the team’s ability to anticipate demand for space with such close proximity to a high-growth area with limited supply of industrial real estate.”

Located in the high-growth area of northern Frisco, the property is located on Preston Road at Rockhill Parkway, just south of US Highway 380.

“Frisco is appealing to industrial tenants due to the proximity to explosive population growth, along with corporate relocations to both Frisco and the Legacy area of Plano,” Hagewood tells GlobeSt.com. “This space in Frisco offers a good tenant solution, given industrial land is very scarce in the northern suburbs and proximity to major industrial markets is a significant distance. Typically industrial tenants are forced to venture out to DFW Airport, Denton and McKinney as those are the closest areas…miles away from Frisco.”

Hagewood says one trend Stream is seeing is extremely low vacancy has yielded premium rental rates.

“Demand far outpaces supply and recent new construction has provided some relief for tenant expansion and companies relocating from other areas of the country,” he tells GlobeSt.com.

Hagewood, along with Stream’s Cannon Green and Steve Riordan co-managed the development, leasing and management of the project.

“We’re confident that this building will be well received and are thankful for all of the support the city of Frisco has provided along the way,” said Damian Bailey, senior vice president of investments at Cabot Properties.

The industrial construction pipeline picked up during the third quarter and was 27.5 million square feet at the end of the quarter with a pre-committed rate of 28.7%. Construction starts during the third quarter 2019 totaled 9.3 million square feet, according to a recent CBRE report.

Delivered product totaled 5.2 million square feet and was 68.6% pre-committed. Due to a large amount of vacant existing space being occupied this quarter, the market vacancy rate came down 41 basis points during the quarter and was 5.6% at quarter’s end, says CBRE.