Key Takeaways
- • A fund in the CBRE Strategic Partners U.S. series acquired Westside 35, a newly constructed 540,000-square-foot, two-building logistics property in the Fossil Creek/Meacham submarket of north Fort Worth, according to a press release.
- • The asset was 100% pre-leased to three tenants at the time of acquisition, making it a stabilized, income-producing purchase.
- • The property offers 109 dock doors, 36-foot clear heights, 185-foot truck courts, 107 trailer stalls and an adjacent 7.1-acre parcel for future trailer parking.
- • Submarket vacancy stood at 5.4% at the end of Q3 2022, down 140 basis points year-over-year, reflecting constrained new supply.
- • CBRE Investment Management cited survey data showing 64% of U.S. logistics occupiers plan to expand their footprints within three years.
Summary
A fund in the CBRE Strategic Partners U.S. series has acquired Westside 35, a newly constructed 540,000-square-foot two-building logistics property located at 2555 and 2575 Downing Drive in the Fossil Creek/Meacham submarket of north Fort Worth, according to a press release dated December 21, 2022. The property was 100% pre-leased to three tenants.
The asset features single-load, Class A construction with front-loading configuration, 109 total dock doors, 36-foot clear heights and 185-foot truck courts. It includes 107 trailer stalls and an adjacent 7.1-acre land parcel that can accommodate additional trailer parking. The site borders the BNSF railway and two power substations, providing 3,000 amps of power to each building with capacity for additional future tenant requirements.
Topper Sheehy, director of logistics acquisitions at CBRE Investment Management, said the property's location gives tenants strong access to labor and efficient reach to end consumers, noting nearly 400,000 households within a 10-mile radius and 1 million within a 20-mile radius. Sheehy described the asset as being in a strategic infill location.
According to the release, new development opportunities in the submarket are limited by land constraints and macroeconomic headwinds. Combined with strong demand near population growth and major thoroughfares, this has supported high occupancy and a submarket vacancy rate of 5.4% at the end of Q3 2022, a 140-basis-point decline year-over-year. Diann Hsueh, deputy portfolio manager for Strategic Partners U.S., said modern building characteristics are what sophisticated tenants now expect.
The release also cited a recent survey in which a majority of U.S. logistics occupiers expect to expand despite economic uncertainty, labor shortages and supply chain disruptions. Sixty-four percent of surveyed occupiers plan to expand their U.S. logistics footprint over the next three years, and 47% plan to expand by more than 10%. The transaction was not disclosed with a purchase price in the source material.
The asset features single-load, Class A construction with front-loading configuration, 109 total dock doors, 36-foot clear heights and 185-foot truck courts. It includes 107 trailer stalls and an adjacent 7.1-acre land parcel that can accommodate additional trailer parking. The site borders the BNSF railway and two power substations, providing 3,000 amps of power to each building with capacity for additional future tenant requirements.
Topper Sheehy, director of logistics acquisitions at CBRE Investment Management, said the property's location gives tenants strong access to labor and efficient reach to end consumers, noting nearly 400,000 households within a 10-mile radius and 1 million within a 20-mile radius. Sheehy described the asset as being in a strategic infill location.
According to the release, new development opportunities in the submarket are limited by land constraints and macroeconomic headwinds. Combined with strong demand near population growth and major thoroughfares, this has supported high occupancy and a submarket vacancy rate of 5.4% at the end of Q3 2022, a 140-basis-point decline year-over-year. Diann Hsueh, deputy portfolio manager for Strategic Partners U.S., said modern building characteristics are what sophisticated tenants now expect.
The release also cited a recent survey in which a majority of U.S. logistics occupiers expect to expand despite economic uncertainty, labor shortages and supply chain disruptions. Sixty-four percent of surveyed occupiers plan to expand their U.S. logistics footprint over the next three years, and 47% plan to expand by more than 10%. The transaction was not disclosed with a purchase price in the source material.
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