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Georgia-Based Firm Signs 550K SF Warehouse Lease In Midlothian

A Georgia-based manufacturer has inked a massive warehouse lease in Midlothian.

Speciality Building Products will take over a 550K SF building at Southern Star Logistics Park, adjacent to State Highway 67 along Railport Parkway. The lease also includes 25 acres of outdoor storage and dual rail service.

A rendering of Southern Star Logistics Park in Midlothian

Logistics Property Co. began construction on the park in 2021. The tenant liked the property because of its ample access to power, J.C. Hay, vice president of asset management for Logistics Property Co., said in a statement. 

Robust power supply has become a top site selection factor among industrial and data center operators as demand continues to outpace supply. 

Only 20% of demand for power generators in the U.S. is being met, Forbes reported. Lead times for critical equipment like switch gears and circuit breakers are still prolonged four years after the onset of the pandemic, and demand is expected to remain on an upward trajectory as investment into manufacturing and data centers continues to spike.

Some industrial developers in Texas are taking the power crunch into their own hands. Prologis debuted its first battery storage project in Arlington earlier this month and plans to launch two more sites over the next year.

The move comes in the wake of news that the state's power grid will need to double in capacity by 2030 to meet the surge in demand from artificial intelligence, cloud computing and bitcoin mining.