A new Fort Worth warehouse project has landed a major tenant. The warehouse is a 1.24 million-square-foot industrial building on Insterstate 35W at Westport Parkway. Dallas News reports that the new warehouse is a project from Hillwood.
This new warehouse is the biggest so far built in the Alliance Texas development. The warehouse has been leased to Target, with plans to be a major shipping hub. The warehouse is near other major distribution operations for companies including Amazon and FedEx. This newly leased building is the first part of the 100-acre Alliance Center East business park. This business park has sites for two more buildings with over 400,000 square feet.
According to Dallas News, the Target lease is the largest North Texas warehouse deal in the second quarter. Other major warehouse leases have been signed by The Hayes Co. and Libbey Glass. According to Dallas News, Cushman & Wakefield has tracked over 22.5 million square feet of warehouse leases in the D-FW area. Warehouse development in the D-FW area has more than doubled in a year. Most of the new warehouse building construction is happening in Southern Dallas County.
This year, a record 70 million square feet of warehouse and distribution space was under construction in North Texas. Dallas News says that with construction costs increasing and interest rates higher, warehouse building may have peaked already. The costs and interest rates will impact new developments that look to get financed, slowing down the future construction pipeline. While actual building activity may have peaked, there's no sign of a slowdown in industrial leasing.