Creation and PGIM Real Estate have begun construction on a 600,000-square-foot logistics hub in northwest Dallas. The project, called 635 Exchange, is being built on a 36-acre site that was previously used as a City of Dallas landfill at 11535 Newberry Street. The development is expected to be completed by next fall.
The three-building facility will be located at the intersection of Interstates 35 and 635, providing convenient access to DFW International Airport. Creation, based in Dallas, and PGIM Real Estate, which is part of Prudential Financial, secured a $65.5 million construction loan for the project with financing arranged by JLL Capital Markets.
During the groundbreaking event, Creation donated $25,000 to CLC Inc.’s YouthBuild project. This program supports education and job training for at-risk youth.
PGIM’s Soultana Reigle commented on the project’s timing: “The timing of this project allows it to benefit from structural tailwinds in supply-chain optimization and e-commerce demand.”
The industrial market in Dallas-Fort Worth remains strong despite a slight increase in vacancy rates during the third quarter. According to CBRE, the region has experienced positive absorption of industrial space for 60 consecutive quarters. Although less than three percent of new deliveries were pre-leased in the third quarter—leading to a rise in vacancy rates to nine percent—the proportion of pre-leased projects under development increased significantly by the end of the quarter.
Manufacturing has been responsible for most leasing activity recently. South Dallas and Northwest Fort Worth are currently the most sought-after industrial submarkets in the area. AllianceTexas, a major mixed-use development and logistics center by Hillwood covering 27,000 acres, is located in Northwest Fort Worth.
