Bisnow DFW Industrial Summit: Day 2
Industrial developers have competition for locations: single-family housing developers, says Jackson-Shaw VP of development Jason Nunley at Bisnow’s DFW Industrial Real Estate Summit on Tuesday. A good example is a 165-acre purchase bordering DFW Airport that Hines acquired for a housing development, Jason says. We find ourselves pushing farther and farther to the periphery, he adds. Jackson-Shaw’s latest project (Park Royal) is a 511k SF development on 40 acres in the heart of Freeport that broke ground two weeks ago. (We have so many Amazon boxes in our house, we might qualify as an industrial warehouse.)
Seefried Industrial Properties industrial SVP Jonathan Stites says 40% of big box industrial requirements are somehow correlated to e-commerce. It’s not Amazon, but companies like Walmart and Kohls, he says. Those retail establishments have realized that they have a variety of ways to get their product to consumers.
The industrial market went through a five-year period where demand was muted, consolidation occurred, and people were cutting the cost out of the supply chain, says Prologis central region prez Jeremy Giles. A lot of quality space was absorbed and almost nothing was built. Now, we’re returning to development levels that feel more normal. But the market is fundamentally different, with e-commerce growing 15% to 20% annually (and higher after the Frozen DVD dropped. Let it go, moms).
The East Texas I-20 Corridor Alliance includes Lindale EDC (John Clary), Jana Russell (Kilgore EDC), and Albert Gonzalez (Canton Economic Development). The event sponsor tells us there’s strong industrial economic benefits along I-20 with shovel-ready industrial sites in place as well as spec and virtual buildings. A big plus: this region has the workforce needed for industrial projects.
We snapped Seefried’s Doug Otte with event sponsor Jordan Foster Construction’s Ryan Lack and John Riggins. John tells us Jordan Foster sets itself apart by providing clients with the most accurate historical data costs in the industry. They have the info firsthand because of the firm’s recent activity including two projects for Trammell Crow: the 823k SF Penn distribution center in South Dallas and the 1.6M SF two-building 35/Eagle project across 81 acres in the Alliance Corridor.
Here’s event sponsor Bury’s Josh Millsap, Deren Wilcox, and Richard Zinser. Bury worked with Aldi on its 57-acre distribution center facility in Denton, which includes a 474k SF warehouse, offering rear-load capability on 191 truck docks, a 16k SF office, dispatch buildings, and 137 parking spaces. In addition to on-site design, Bury provided surveying and engineering services for the city street improvements. Because of its proximity to the municipal airport and the FAA's height restriction requirements, FAA permitting was required, too.
Event sponsor CFA Alliance Group’s Bobby Durham (left, with Brickman’s Chris Rodgers) tells us life’s short: eat dessert first. But he’s more than a philosopher. He’s all about helping connect people through matching projects and developers with the best firms for their deals.