FORT WORTH—Strong population increases, job growth, residential development and a pro-business climate continue to drive the market’s industrial sector. Properties with large footprints, fully leased to credit tenants are the norm, leading to a substantial increase in investment sales throughout the DFW metro.
Two such examples are typified in the recent $70 million sale of a group of industrial buildings, in an EXCLUSIVE to GlobeSt.com. Scannel Properties’ Railhead is a 229,840-square-foot industrial asset purchased by Western Devcon. And, Bay Grove’s Lineage Fort Worth transaction consisted of a three-property portfolio totaling 970,000 square feet purchased by TA Realty.
Railhead is a newly constructed class-A industrial asset that is 100% occupied by two tenants and includes 60-foot staging bays, 125-foot truck courts and 30-foot clear height.
The Lineage Logistics Fort Worth portfolio includes buildings that are located at 6440 Oak Grove, 6401 and 6445 Will Rogers Blvd. All three buildings are 100% leased. The site also includes a 4.5 acre lot with the potential for expansion.
JLL capital markets international director John Huguenard tells GlobeSt.com: “The Dallas-Fort Worth area is in the midst of a tremendous time of population and job growth, which is really driving the industrial sector. We’ve seen absorption rates for industrial properties in the area increase since 2009, and over the last 12 months, there has been a 33% uptick in investment sales.”
The transactions were led by Huguenard, executive vice president Sean Devaney and vice president Ed Halaburt, along with local JLL leasing brokers, executive vice president Kurt Griffin and vice president George Curry.
Kent Elliott, principal at RETS Associates, echoes the job growth sentiment, telling GlobeSt.com: “Dallas is a great real estate market to be in right now. Unemployment remains low and hiring is strong. Likewise, base compensation has increased for top performers across the board of positions and management levels to approximately 10%. We do not anticipate hiring to slow through the rest of 2016.”