CapRock Begins 1st Ground-Up Texas Project

CapRock Partners has kicked off its first ground-up construction project in Texas. Nearly two years after it had acquired the 32.5-acre site in Sunnyvale, the firm broke ground on a 483,128-square-foot industrial campus dubbed Clay Road Business Park. Completion is set for early next year.

The development will comprise three shallow-bay warehouses measuring 124,800, 169,890 and 203,000 square feet. Specifications include 32- to 36-foot clear heights, as well as a total of 75 dock doors, six drive-in doors and parking arrangements for 94 trailers and 564 cars.

Located at 101-105 Clay Road, the project rises in Dallas-Fort Worth’s East submarket, one of the Metroplex’s fastest-growing areas on account of tenant demand ballooning alongside a spike in population and manufacturing activity. Downtown Dallas is 15 miles away.

---

READ ALSO: Industrial Construction Starts Drop as 2026 Begins

---

Although this is CapRock’s first ground-up development in the Lone Star State, the company was already active in Texas, having 3 million square feet of product acquired, under contract or in development. For reference, the firm has invested in or constructed 35 million square feet of industrial space nationwide since its inception in 2009.

The company has a second project in the pipeline in Dallas, this one in McKinney, Texas, within the northeast submarket. CapRock acquired a 15-acre property last summer and plans to build a speculative project totaling 250,000 square feet on the site. The firm could break ground on the $30 million project this spring.

Dallas deliveries drop, construction pipeline shrinks

Metro Dallas had 16.5 million square feet of industrial product underway at the end of March, a sharp adjustment from 2023 when it had 62.7 million square feet of space under construction, according to a CBRE report. Quarterly industrial deliveries also took a hit, falling 66.7 percent during the three-year window.

Despite this drop, vacancy still rose 3.8 percent between March 2023 and March 2026, climbing up to 9.3 percent. However, pricing power persisted, with average asking rents increasing 11.4 percent during the same period to $10.13 per square foot.

One of the most notable projects that broke ground this year in the metro is Hillwood’s Alliance Westport 12, a 1.2 million-square-foot building. The Fort Worth, Texas, facility is rising within the company’s AllianceTexas master-planned development.