DALLAS—On the heels of another speculative project underway in El Paso, VanTrust Real Estate LLC recently broke ground on a 1 million-square-foot speculative industrial building in southern Dallas. Located south of Interstate 20, DalParc Logistics Center is part of a planned 200-acre logistics park anchored by Amazon and L'Oreal that will serve the growing e-commerce, logistics and manufacturing markets in North Texas.
"Southern Dallas is experiencing tremendous industrial growth as more companies work to transform and reinvest in this part of North Texas," said Bill Baumgardner, executive vice president at VanTrust and head of the company's Texas office. "With the vacancy rate decreasing to 7.9%, we believe southern Dallas is going to be the next industrial hotspot that can accommodate our customers' needs for speed-to-market delivery as consumer behavior changes."
North Texas continues to be a desirable industrial destination. In the first half of 2020, nearly 8.2 million square feet of industrial space was absorbed throughout the region. Southern Dallas experienced a 2.6 million square foot total net absorption during that timeframe, the highest of all six main industrial locations in Dallas, according to CBRE.
"As consumers continue to rely heavily on e-commerce, demand for large-scale distribution facilities is considerably increasing," said Josh Meredith, director of development at VanTrust. "This is undeniably clear in the Dallas market. DalParc Logistics Center's proximity to three major interstates and the Union Pacific Dallas Intermodal Terminal make this a highly desirable destination for e-commerce fulfillment."
In addition to its central geographic location and access to rail, air and ground transportation options, DalParc Logistics Center offers a wide range of strategic advantages. Among these are Texas' business-friendly atmosphere including the lack of a state income tax, a climate that keeps logistics moving year-round and a plentiful workforce. North Texas is also an attractive option for e-commerce and logistics operations due to the availability of industrial space and class-A offices, giving businesses the option for both corporate offices and manufacturing/distribution centers in close proximity to ensure any issues can be addressed quickly and efficiently.
The logistics center is slated for completion in July 2021. Phase I of VanTrust's El Paso logistics park is slated for completion in early 2021 and phase II will commence upon completion of the first phase.
"The multiple projects that VanTrust is kicking off in Texas speak to the volume of e-commerce and logistics demands across the country," Meredith tells GlobeSt.com. "Each market has its unique role in the supply chain. In El Paso, we see the same users that are in Dallas but on a smaller scale. The shallow bay product that VanTrust is building in El Paso meets the regional demand and complements the manufacturing industry in Juarez. Dallas is a big box and bulk user market. At over 1 million square feet, DalParc Logistics Center is designed to meet the requirements of a large e-commerce user with a 40-foot clear height, and excess auto and trailer parking."
Nathan Lawrence and Krista Raymond of CBRE will be leasing the Dallas project. The project contractor is MYCON General Contractors, the architect is Alliance Architects and the civil engineer is Kimley-Horn.
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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.
