An international investment firm now owns an industrial park at DFW International Airport.

New York-based Brookfield Properties acquired the three-building Passport Logistics Center.

The 1.2 million-square-foot warehouse and distribution complex was developed by Dalfen Industrial, which has headquarters offices in Dallas and Canada. The buildings are at the south end of the airport near Airport Freeway and are part of the airport’s mixed-use Passport Park development.

Dalfen built the Passport Logistics Center in partnership with Brookfield, which now is the full owner of the business park.

“With the project’s prime location and best-in-class functionality, Brookfield Properties leased 50% of the project during construction,” Brookfield Properties officials said in a statement. “Over the past three years, Brookfield Properties has increased its footprint in the Metroplex, adding over 5.5 million square feet across nine transactions.”

During the last year, Brookfield has added more than $1.2 billion in logistics properties in the U.S.

North Texas warehouse construction is barely keeping up with demand.

Dalfen Industrial in turn has bought five industrial buildings in Fort Worth and San Antonio.

In Fort Worth, Dalfen acquired the new Mark IV Commerce Center, a three-building, more than 1 million-square-foot industrial park at Interstate 35W and Interstate 820. The buildings were developed by Crow Holdings Industrial.

Dalfen also purchased two industrial buildings north of San Antonio off Interstate 35.

“Best-in-class properties in exceptional infill locations make these acquisitions a natural fit for our rapidly growing portfolio,” Sean Dalfen, president and chief investment officer of Dalfen Industrial, said in a statement.

Dalfen Industrial now owns more than 4 million square feet of industrial buildings in Texas.

Dalfen Industrial bought the Mark IV Commerce Center in North Fort Worth.
Dalfen Industrial bought the Mark IV Commerce Center in North Fort Worth.(Dalfen Industrial )

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Fueled by increased consumer product demands during the pandemic, Dallas-Fort Worth industrial building leasing set a record in the first nine months of 2020.

Warehouse and distribution tenants have gobbled up 21 million square feet of industrial space in North Texas through September.

Almost 5 million square feet of net leasing was recorded just in the third quarter, according to a new report from commercial real estate firm Cushman & Wakefield.

“The Dallas-Fort Worth industrial market continues to perform extremely well,” Cushman & Wakefield executive managing director Nathan Orbin said. “Even as concerns over the pandemic and an upcoming presidential election exist, demand remained strong,

“We anticipate demand to remain elevated as we are currently tracking over 14 million square feet of active tenant requirements.”

Expanding e-commerce and consumer products firms are driving the demand for North Texas warehouse space.

In the third quarter, some of the biggest leases were by Uline, a Wisconsin-based distributor of shipping, industrial and packaging materials that took 1.6 million square feet of space at DFW International Airport, and Amazon, which leased another 1 million square feet in southern Dallas. Encore Wire Corp added 724,380 square feet of distribution space in McKinney.

“E-commerce and the increasing demand for industrial product is driving the D-FW industrial market,” said Kurt Griffin, Cushman & Wakefield executive managing director. “D-FW has delivered close to 23 million square feet of industrial product year to date with another 24 million square feet under construction.

“However, tenant leasing is keeping up with new supply, maintaining a below historical level vacancy, which currently sits at 6.5%.”

Most of the ongoing industrial development is in southern Dallas County, in the AllianceTexas development area of North Fort Worth, at DFW International Airport and in South Fort Worth.

More than 23 million square feet of warehouse space is under construction in North Texas.
More than 23 million square feet of warehouse

Much has been written about the pandemic-precipitated problems plaguing real estate’s commercial sector. But with office and retail-oriented real estate feeling the ill effects of COVID-19, there’s one sector that seemingly remains in the pink of health.

That is the commercial real estate industry’s industrial sector, comprised of factories, warehouses, distribution centers, fulfillment centers, data centers and similar real property. JLL
JLL
recently reported e-commerce represents half its U.S. leasing activity, an increase from the 36% number registered prior to the onset of COVID-19.

The firm projects an anticipated $900 billion increase in online sales over the next half decade will translate to need for more than one billion additional square feet of industrial real estate by 2025.

In few places is the metamorphosis more evident than in the Chicago metropolitan area, which is able to leverage its advantage as a central U.S. transportation hub in supplying the factory, warehouse and fulfillment center needs of companies nation- and worldwide. A recent snapshot of the Chicago metro’s industrial market reveals new industrial leasing soared by 56.3 % year-over-year, based on 21.2 million square feet in new leasing activity, according to the latest Cushman-Wakefield report.

Surging demand

“Industrial assets remain largely insulated from the pandemic’s devastating economic toll,” says Robert Smietana, vice chairman and CEO of Chicago-based HSA Commercial Real Estate, which recently inked an enormous lease for its 757,880-square-foot, new construction warehouse project in the southwestern Chicago suburb of Shorewood, Ill., near Joliet.

“In recent months, we’ve seen demand for warehouse space surge as consumers and businesses rely on e-commerce for everyday needs. Supply chains have shifted in response to these broader changes, which have

Earlier this year, the COVID-19 pandemic dealt a severe blow to the U.S Manufacturing sector, which had already been reeling under waning global demand and the long-standing U.S.-China trade tensions. The pandemic-induced supply-chain disruptions, factory closures due to government restrictions worldwide, bleak demand as well as volatility in the energy market have battered the sector.

However, the U.S manufacturing sector seems to be gaining momentum, of late, as evident from the pick-up in manufacturing activities over the past few months, spurred by steady resumption of business, factory operations and other economic activities. Moreover, uptick in construction demand and various government stimulus packages are bolstering the sector.

Manufacturing Rebounds for 4 Straight Months

Per the Institute for Supply Management, the U.S Manufacturing Purchasing Managers’ Index (PMI) logged 55.4% growth in September, which came a tad below 56% in August — the highest  so far in 2020. Notably, a reading above 50 denotes expansion in activity and the September PMI reading marks expansion in the sector for four consecutive months after remaining below the 50 mark from March to May primarily due to the pandemic. Notably, in April, the PMI index had slipped to 41.5% — the lowest reading since April 2009. Hence, the sector is coming out of the crisis and this recovery holds optimism for overall economic growth, as the manufacturing sector accounts for 11% of the U.S. economy.

Of the 18 manufacturing industries, 14 reported growth in September. The New Orders Index registered 60.2% growth in September, down from August’s 67.6%. The Production Index dipped to 61% from August’s 63.3%. The Employment Index grew to 49.6% in September from 46.4% in August.

Moreover, the IHS Markit reported that the US Manufacturing PMI rose to 53.2 in September from August’s 19-month high level of 53.1. The September reading demonstrates the

BAY CITY, MI – Bay City’s South End is one step closer to becoming the new home of a state-of-the-art marijuana growing facility that promises to bring about 100 jobs to the area.

On Monday, Oct. 5, the Bay City Commission approved an Industrial Facilities Tax Exemption Certificate application for Shango Park Bay City Inc. to allow the company to rehabilitate a vacant 24,800-square-foot building located at 1601 Garfield. The approved IFT is for the total amount of $7 million for 12 years.

Shango’s proposed plan involves turning the empty building and its 5-acre property into a mixed-use facility for marijuana cultivation, processing and storage, with the possibility for corporate offices. The existing structure will primarily be used for cultivation and offices while additions are planned to include a bakery and extraction lab.

Construction is slated to start in Fall of 2020, with the first phase of construction estimated to be wrapped up in Spring 2021.

Shango’s website refers to itself as a leading medical and recreational medical dispensary license holder, grower and manufacturer in multiple states across the country. Shango currently has facilities and sells products in Oregon, Nevada and Washington, with the plan to strengthen Michigan as a new player in its roster. Shango currently has a medical marijuana provisioning center in Lapeer but the company has larger plans for the Bay City location.

Matt Kowalski of Warren-based Shango was in attendance at Monday’s meeting to clarify details for commissioners about the tax abatement and plans for the property.

In exchange for the tax exemption, Shango plans to revamp the property and add approximately 100 new jobs of varying skill level.

“We’ll have jobs anywhere from janitorial staff all the way up to PhD’s,” said Kowalski.

In addition, Kowalski stated that the company is planning a provisioning center