Duke Realty Corp. just lately accomplished lease offers totaling 1.1 million sq. ft with present tenants samsung Metropolitan Dallas and . In Starplast USA in Houston. With the closing of two transactions, Duke would not have a single sq. foot obtainable for lease in its huge, practically 23 million-square-foot Lone Star State industrial portfolio.
The whole lot is massive in Texas—together with the demand for industrial merchandise. Nonetheless, it’s a nationwide development that’s on the core of the low emptiness charges throughout the state and the now-zero emptiness charge of Duke’s Texas portfolio.
“The necessity to get extra merchandise to customers in a 24- to 48-hour interval is driving the necessity for giant, state-of-the-art amenities,” mentioned Jeff Thornton, regional senior vp and Texas market chief at Duke Realty Corp. ., Advised business property government,
“Consultants are predicting that this can improve the demand for brand spanking new warehouse house nationwide from 750 million to greater than 1 billion sq. ft over the subsequent few years. That is two to 3 years of regular demand within the US. No matter headline you examine provide chain points being the catalyst for extra warehouse demand within the US. We don’t anticipate a recession within the close to time period. This exercise throughout the nation is indicative of what we’re experiencing in Texas.”
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Samsung renewed its lease for roughly 815,900 sq. ft of house at Level West Industrial Park, Duke’s 2.1 million-square-foot industrial complicated in Coppell, about 20 miles northwest of the Dallas Central Enterprise District. Duke developed the three-building park, which is off I-65 and near Dallas Fort Value Worldwide Airport, in 2008, and Samsung first signed on for house at a facility in 2009. Samsung renewed its dedication to its house. The roughly 1.1 million sq. foot Level West 400 constructing at 400 Dividend Drive.
In Houston, Starplast struck a deal for added elbow room at Deux Level North Industrial Park. Starplast has referred to as Level North’s 8221 Volta Drive residence at 8221 Volta Drive since signing a lease for roughly 168,900 sq. ft within the then-new facility within the first quarter of 2020. Now the corporate has struck a deal to occupy the complete 337,700-square-foot constructing. , With the enlargement leased, Starplast at present has a footprint of roughly 520,200 sq. ft throughout two buildings in Level North.
Duke Realty’s Matt Hyman and Brian Parker led the lease transactions internally on behalf of the corporate. Mark Baker and Jay Benner Cushman and Wakefield Represented Samsung in its lease renewal whereas JLLOkay. Ryan Fuselier and CBREOkay Patrick Rollins and Ed Frantz stood in for Starplast within the enlargement transaction.
At the moment, Duke’s solely providing in Texas is a 24-acre suburban Dallas web site at Dawn Enterprise Park in Wilmer that may accommodate a build-to-suite growth of roughly 450,000 sq. ft. Nonetheless, pure-play logistics property REITs are supposed to accommodate the continuing wants of customers for contemporary leasable house.
“With a really robust regional economic system and inhabitants density in Texas and our choose areas close to main transportation corridors, our main submarkets are feeling emptiness charges of two to three p.c in Dallas and about 6 p.c in Houston. We’re in Texas. We’re continuously pursuing alternatives to fulfill the warehousing and distribution wants of corporations by means of development and acquisitions,” mentioned Thornton. “We’re at all times trying so as to add to our portfolio of present, but trendy, amenities in addition to state-of-the-art , are searching for alternatives to develop the sustainable amenities we’re recognized for.”