Size Does Matter for DFW Airport
Most airports in the US have struggled with industrial building activity over the past years because of scarcity of land around them. But, that’s not the case for Dallas-Fort Worth International Airport, which has one 1M SF spec development available at the airport and another just five minutes north in Lewisville, says JLL managing director Tom McCarthy (with his son—and JLL colleague—Conor). While there is still ample land available for the development of small- to mid-rise distribution centers, few sites remain for the preferred e-commerce-sized buildings of 500k SF to 1M SF, Tom tells us.
This limited supply and strong demand has put strong upward pressure on rates, Tom says, making DFW Airport one of the highest quoted asking rates in the Metroplex. The overall submarket average asking rate is $4.59 (NNN), while large bulk properties are typically asking $3.50 to $3.75 (NNN)/SF. DFW Airport’s economic impact on the Metroplex and other surrounding cities is immeasurable, he says. DFW employs more than 60,000 people and is physically one of the largest airports in the US, covering 27 square miles or 18,000 acres (6,000 acres are logistics-related commercial development). Tom tells us numerous freight forwarders and distribution companies, including DHL, the Dallas Cowboys and Aviall, are located at the airport. Minutes away, you’ll find companies such as Amazon, Kellogg's, ULINE and GameStop.