Neighbor News
Construction Starts on Big Distribution Hub North of DFW Airport
635,000-SF Project Primarily Leased to PPG to Still Offer 185,000 SF of Available Distribution Space in Hot Submarket
Construction on a new distribution facility, largely leased by PPG Industries, got underway Tuesday on a development tract in Flower Mound, TX, that will still bring about 185,000 square feet of available distribution space north of Dallas-Fort Worth International Airport.
The 635,000-square-foot bulk distribution facility at 1001 Lakeside Parkway is roughly 71 percent pre-leased to the global supplier of paints and coatings. The remainder of the hub is currently on the leasing market, with Randy Wood of Duke Realty Corp. handling the listing.
Upon completion, the Flower Mound distribution hub will be a "key component," to PPG's operations, said Jeff Thornton, a senior vice president of Texas operations for Duke Realty.
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Thornton added the modern features of the soon-to-be developed facility in Duke Realty's Lakeside Ranch will enhance the ability of PPG (NYSE: PPG) to serve its customer base in the southwestern United States.
Construction of the new facility, which is being built with 144 loading docks and 36-foot clear heights for stacking, is slated for completion in May 2019. The details of a would-be economic incentive agreement with the Town of Flower Mound weren’t immediately available. According to town documents, Flower Mound offered Duke Realty a Chapter 380 agreement for the new project because the town has no additional industrial space to lease within its municipal limits.
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Thornton said the city and the economic development office were involved in the deal, which happened at a time when North Texas' vacancy rates on industrial space are hitting all-time lows and there's user demand for space, Thornton recently told CoStar News.
"The overall vacancy rate in Dallas-Fort Worth is at an all-time low in the mid-6.5 percent range," said Thornton. "So many markets are infill now, and there's really no room to buy dirt. Developers want to build while the market is so hot right now."
Thornton said North Texas seems to be "really picking up" from where the industrial market was last year, but there's also competition in some submarkets, such as South Dallas.
"I feel like the velocity has maintained itself through the first part of the year, particularly in the true, infill submarkets," he added. "We expect the market to be strong certainly through the end of this year."
