Duke Realty has fully leased up a newly built, Class A, 634,564-square-foot industrial building at 1001 Lakeside Parkway in Flower Mound, Texas, with the signing of a deal for 185,344 square feet of space with Communication Test Design Inc. The CTDI lease was among nearly 1.7 million square feet of new and renewed leases secured by Duke’s Dallas office during the COVID-19 crisis.
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The speculative building at 1001 Lakeside Parkway in the Lakeside Ranch Business Park just north of the Dallas-Fort Worth International Airport delivered in the fourth quarter of 2019. Before completion, PPG Architectural Finishes preleased about 450,000 square feet at Lakeside Ranch 1001, said Jeff Thornton, Duke Realty’s regional senior vice president in Dallas. Thornton said CTDI, a telecom engineering, repair and logistics company, is installing equipment for a 5G cellular network and will be using the Duke facility for storage and distribution.
Thornton said CTDI already leased space at other facilities in the area, including one adjacent to Lakeside Ranch 1001. He said “meaningful discussions” began with CTDI during the pandemic, while the region was sheltering in place. Thornton said the team worked with the city of Flower Mound via phone and Zoom calls to get approvals to fast-track the tenant improvements for CTDI.
“Since it was a first-generation space, the space was just in shell condition. We had to complete construction of almost 20,000 square feet of office space, fully air condition the space, put in loading docks and power,” Thornton told Commercial Property Executive. “We delivered this space in an expedited fashion despite the pandemic.”
Thornton said they were proud of leasing almost 1.7 million square feet of space during the pandemic. “It’s a testament to the location and quality of our portfolio,” he said. He also credited the “dynamic” Dallas industrial market, noting all the properties in the recent leasing transactions are located along major freeways and interstates that will perform well in any market conditions.
Thornton said the biggest challenge for the team was getting used to a new way of communicating while they were all working at home. He said Duke had invested in an IT upgrade three years ago that made it much easier for the team members to connect with each other and third parties.
“The speed at which we adapted was really key to us getting this nearly 1.7 million square feet of leasing done during the pandemic,” Thornton told CPE.
Lakeside Ranch 1001 is one of three buildings Duke Realty, a logistics property REIT based in Indianapolis, owns in the Lakeside Ranch Business Park. The state-of-the-art, infill-bulk warehouse provides last-mile connectivity to the residential growth northwest of Dallas. It also has direct access to the airport via SH 121 and also has convenient connections to Interstates 635 and 35.
Matt Hyman handled the negotiations for CTDI and the five renewals for Duke. Other brokers working on the CTDI transaction were Ken Wesson with Lee & Associates; John Morrissey with Jackson Cross; and Craig Jones, Tom McCarthy and Fred Ragsdale with JLL, the listing agent for the property.
Despite the challenging business environment during the pandemic, the Duke team also negotiated five lease renewals with existing tenants. Hyman also handled these lease transactions for Duke. The lease renewals and the brokers involved in those deals were:
- Duro-Last, 80,440 square feet at Trinity Mills, 2940 Eisenhower St., Carrollton, Texas; Trace Elrod and Chris Mathis with Newmark Knight Frank;
- Norwex, 143,000 square feet at Freeport XIV, 800 W. Bethel Road, Coppell, Texas; Brad Struck and Sharon Morrison with ESRP;
- Essilor, 159,000 square feet at Waters Ridge 501, 501 E. Corporate Drive, Lewisville, Texas; Jean Russo, Cushman & Wakefield;
- HD Supply, 525,641 square feet at Lakeside Ranch 550, 550 Lakeside Parkway, Flower Mound; Allen Gump and Douglas Biggs with Colliers International;
- American Standard, 626,100 square feet at 801 East Wintergreen Road, Hutchins, Texas; Melissa Holland, Chris Stout, TJ Hochanadel and Dan Santagata with JLL.