print header

# 1 Commercial Real Estate Information Company

  • Find Properties 
  • Market Properties 
  • Analyze Properties 
Products
Commercial Real Estate News

Dallas-Fort Worth Tops Hines' List for $600M of Investment Earmarked for Logistics

The Global Real Estate Firm Plans to Invest Millions in Ground-Up Development and Value-Add Properties
May 4, 2018
Pictured: Building A of the DFW East Logistics Center in Irving, TX.

Hines has earmarked Dallas-Fort Worth as a top destination for the expansion of its newly launched national industrial platform targeting value-add acquisitions and developments.

In all, the global real estate firm plans to invest more than $600 million targeting industrial real estate in key markets in Texas and the United States.

"Hines is expanding our logistics business both regionally and nationally," Connor Tamlyn, a director at the Houston-based firm, told CoStar News, in an email. "Hines is acquiring or developing a wide variety of logistics facilities including bulk distribution and shallow bay product.

"Demand has been robust for both types of facilities, and we expect this trend to continue as users restructure their supply chains to meet the changing demands of their customers," he added.

The real estate firm plans to outlay $100 million in capital each year into logistics hubs in the next few years. Last fall, Hines hired Tamlyn to oversee the company's expansion plans in Dallas-Fort Worth, which is considered a key U.S. logistics market.

Dallas-Fort Worth has more than 23 million square feet of logistics real estate in the development pipeline, according to CoStar data. North Texas is one of the key U.S. logistics markets, along with the California's Inland Empire, Atlanta, Chicago and the northern New Jersey submarket.

Tamlyn and his team recently acquired DFW East Logistics Center, a three-building, 259,555-square-foot shallow bay industrial park located on an 18-acre tract along W. Walnut Hill Ln. in Irving near Dallas-Fort Worth International Airport.

The Class A industrial park is 15 percent leased to Universal Health Services and Bisco Industries, with 220,000 square feet of space available for lease. Hines hired Bob Hagewood and Jeremy Kelly at Dallas-based Stream Realty Partners to lease the remaining space in the park.

The ability to lease up the remainder of the industrial park to tenants seeking 15,000 square feet to up to 160,000 square feet of contiguous space was appealing to the real estate investor.

With this latest addition, Hines' logistics portfolio is nearing 2 million square feet of industrial space in the region. By the end of last year, Hines had more than 70 million square feet of industrial or logistics space throughout the globe.

"With the current Hines domestic logistics platform at over 10 million square feet, we continue to see the paradigm shift in the logistics industry," Tamlyn told CoStar News. "Supply chains for both traditional distribution and last mile facilities with building specs that are setting the standard in many of the submarkets we are in."

In North Texas, Tamlyn said he expects to continue to expand Hines' footprint.

"At present, Hines is principally dedicated to ground-up development and value-add acquisitions," he added.

Candace Carlisle, Dallas-Fort Worth Reporter  CoStar Group   
GET IN TOUCH        Contact CoStar News Team:   News@CoStar.com

 Find us on 

Welcome To CoStar's
Industry-Focused,
Award-Winning News

Winner of three Journalism Awards from the National Association of Real Estate Editors (NAREE)

Award-Winning News