Industrial development filling storage facilities in Fort Worth

It's not simply individuals that are moving to Texas. Companies are too, with a number of them filling the commercial areas in Fort Worth.

Reshoring, the development of the electrical car supply chain and brand-new, more automated distribution centers are fueling the growth, according to local property leaders.

Learn more about your neighborhood better with our complimentary newsletters. Sign up today so you don't miss a thing!

" I'm busier than I've ever been," stated Bob Scully of real estate firm CBRE, who has more than 40 years in the business.

Scully and others in the industry believe 2023 may end up being a record for leases in the commercial area.

" Some of it may be suppressed need from the pandemic and the reality that the majority of our supply-chain problems have actually eased off, but our population growth is pressing a lot of this," stated Scully.

Third-party logistics business, food and drink and retail drove need in the second quarter of 2023, taking up 4.1 million square feet or nearly 71 percent of the marketplace of lease transactions over 100,000 square feet, Scully said.

" And that's basically been true for the past year," he stated. "Companies want to be here, along the I-35 corridor."

The need for industrial area is being felt in the increase in leas in the commercial market. Rent prices have grown 13% in Fort Worth in the 2nd quarter year-over-year, according to a report from Transwestern.

The recent statement that Junchuang North America Inc., a China-based supplier of innovative products for the electric vehicle market, is renting a 55,000-square-foot manufacturing/industrial center at 46 Ranch Logistics Park in south Fort Worth, is an example of how the area is attracting companies that supply the electric lorry market.

" The North Texas region is becoming an important center for new types of sustainable energy, and that consists of electric cars and the technology that powers them," said Robert Sturns, the city of Fort Worth's financial advancement director.

CBRE's Scully said he is seeing that trend.

" That industry needs suppliers and this location has the logistics in location to be appealing to them," he said.

Among the areas in demand is the vast Alliance passage in north Fort Worth.

That is where Southwire, among North America's biggest wire and cable television producers, leased over 1 million square feet of space in mid-summer.

" Southwire wanted what a great deal of our business desire," stated Reid Goetz, senior vice president of Hillwood. "This location at AllianceTexas will provide a circulation platform that will ensure the effective and rapid shipment of electrical elements important to their service operations."

Goetz noted the access to the BNSF Intermodal terminal, Interstate 35 and Alliance Airport as key factors for Southwire finding here.

Business are getting more out of the modern-day industrial warehouse than they were in the past, Goetz said.

" There's more usage of the cube, more volume that is going through the center, more throughput now," he said.

Much of that is due to innovation, such as automated conveyor systems.

" All of that, in the end, means business are investing cash, 10s of millions in many cases, upfront to get what might be a 50-fold increase in efficiency and throughput," he said.

Companies are likewise increasing the length of their lease for these sites.

" Used to be, 5 to seven years was the top," stated CBRE's Scully. "Now, 10 years is not uncommon."

Business wish to avoid the gradual lease increase of the past, he stated. "They would like to know what their expenses are going to be, and the longer lease is a way to manage that," he said.

While the Alliance area stays the leading location in Fort Worth for industrial warehouse area, other locations are seeing interest, stated Scully.

" South Fort Worth utilized to be a trick," he stated. "It's not any more. We see a great deal of interest there."

That's where German industrial giant Siemens may develop a sophisticated factory at 7200 Harris Legacy Drive at Carter Park East. The plant would produce low-voltage switchgear and switchboards and utilize over 700.

The one area which might trigger a downturn in the commercial market is brand-new construction.

" The capital markets are still sorting out the interest rate boosts, so there might be some downturn on new item hitting the market," stated Scully.

At the minute however, new storage facility building is continuing.

In early September, TCRG Properties submitted plans for a more than 1 million-square-foot storage facility with speculative office at Everman Parkway and Interstate 35 in south Fort Worth.

In August, Hillwood revealed the launch of two brand-new speculative commercial buildings, Alliance Center East 2 and Alliance Center East 3. Each are 224,616 square feet, bringing nearly half a million square feet to the AllianceTexas industrial market. Speculative commercial buildings are built without a lease.

Hillwood's AllianceTexas method is to continuously have offered, ready-to-occupy Class A speculative commercial options of all sizes for new and existing clients, said Goetz.

" There is continued market demand for spaces up to 225,000 square feet, particularly for manufacturers, 3PL's, and ecommerce business," said Goetz. "With the recent conclusion of more than $1 billion in expansion enhancements to Interstate 35W, and located within the heart of AllianceTexas' world-class logistics features, these buildings will provide our clients access to among the most important freight corridors in the nation."

Scully said that in spite of the issues in the capital markets, he anticipates to see more announcements of brand-new building in Dallas-Fort Worth.

" The demand is there," he stated.

Bob Francis is company editor for the Fort Worth Report. Contact him at bob.francis@fortworthreport.org.

At the Fort Worth Report, news choices are made independently of our board members and financial fans. Disclaimer: Hillwood has been a monetary supporter of the Fort Worth Report. Read more about our editorial independence policy here.

Desire more coverage of our growing city?

We depend on our members to money our Fort Worth and Tarrant County service reporting.

Donate now

Close window X

Republish this post

This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.

This work is certified under a Creative Commons Attribution-NoDerivatives 4.0 International License.

Unless otherwise kept in mind, noncommercial entities may republish the majority of Fort Worth Report stories for free under a Creative Commons license. For commercial licensing, please e-mail hello@fortworthreport.org.

For noncommercial digital publications:

Search for the "Republish This Story" button underneath each story. To republish online, just click the button, copy the html code and paste into your Content Management System (CMS). Do not copy stories straight from the front-end of our web-site.
You are needed to follow the guidelines and utilize the republication tool when you share our material. The republication tool creates the appropriate html code.
You can't modify our stories, except to reflect relative modifications in place, editorial and time design.
You can't offer or syndicate our stories.
Any web site our stories appear on need to include a contact for your organization.
If you utilize our stories in any other medium-- for example, newsletters or other email projects-- you should make it clear that the stories are from the Fort Worth Report. In all emails, link directly to the story at fortworthreport.org and not to your website.
If you share our stories on social media, please tag us in your posts using @FortWorthReport on Facebook and @FortWorthReport on Twitter.

For noncommercial print publications:

Please use "Author Name, Fort Worth Report" in the byline. If you're not able to add the byline, please include a line at the top of the story that checks out: "This story was initially published by Fort Worth Report" and include our website, fortworthreport.org.
You can't edit our stories, except to reflect relative modifications in editorial, location and time style.
Our stories might appear on pages with ads, however not advertisements specifically offered versus our stories.
You can't sell or syndicate our stories.
You can only release choose stories individually-- not as a collection.
Any website our stories appear on must include a contact for your company.
If you share our stories on social media, please tag us in your posts utilizing @FortWorthReport on Facebook and @FortWorthReport on Twitter.

The Fort Worth Report keeps the copyright for all of its published material. If you have any other questions, contact Managing Editor Thomas Martinez.Industrial development filling warehouses in Fort Worth.
by Bob Francis, Fort Worth Report.
< p > In early TCRG Properties filed plans for a more than 1 million-square-foot storage facility with speculative office area at Everman Parkway and Interstate 35 in south Fort Worth. Check out more about our < em > here < em >. .