March 3, 2017
With the news and excitement generated about corporate relocations north of Dallas, the submarket south of the CBD has been making its own quiet waves. “South Dallas’ Developments and Industrial Boom,” a session that took place during the recent Connect Dallas conference, touched on why South Dallas is growing, especially on the industrial side, and whether that growth will continue. The panel, which was moderated by Corinth Properties’ Terrence Maiden, suggested that growth of, and interest in, the submarket won’t cool any time soon.
Cannon Green, with Stream Realty Partners, pointed out that South Dallas admirably reflects the factors that are sought out in a major submarket. Some of those factors include land availability and increasing consolidations. “The only two submarkets that aren’t land constrained are north Fort Worth and South Dallas,” Green added.
Also adding to tenant and ownership interest in the region, is geography. Jeff Thornton, with Duke Realty, pointed out that industrial growth in the region had been to the northwest for the past quarter-century, with “the only barrier to growth being distance.” As the distance from Dallas became too great in the northwest, it was realized that “South Dallas is only 10 minutes south of Dallas,” Thornton said.
Because many facilities have been built in the submarket within the last 10 years, it has caught the attention of investors, as well. “Potential investors are really liking the submarket because most of the buildings there are new,” explained Jack Fraker with CBRE. “Most are less than 10 years old, many are less than five years old, and they have the latest and greatest features.” It’s not only U.S. investors that are eyeing the submarket, either. “We’ve had interest from investors from the Middle East, to French Quebec, and from Korea and Japan,” Fraker said.
The panelists all agreed that South Dallas could expect more of the same in the near future. Green said he felt it would be three years before the market slows down, while Thornton indicated he didn’t see bumps in the road, “aside from an economic roadbump.”
Fraker, in the meantime, believes that the future will still be great for the Interstate 20 corridor, especially the area that is around the Union Pacific Intermodal Terminal in Wilmer, TX. “Intermodal terminals are big drivers for business,” he added.
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