Trammell Crow Co. and Clarion Partners’ recent lease agreement with Federal Express Corp. for a build-to-suit facility at Park 183 in Southeast Austin, Texas, has sparked commencement of construction on Phase II of the industrial business park. Federal Express’s new 85,000-square-foot building will be the centerpiece of the second segment of the park, which will ultimately encompass a total of 900,000 square feet of Class A industrial offerings.
Park 183 is sprouting up across from Austin Bergstrom International Airport on a 95-acre parcel TCC and Clarion acquired in 2016. The partners completed the two-building initial phase of the development in 2018, delivering 247,000 square feet.
“We continue to see strong demand and absorption of Class A industrial space in the southeast submarket driven by strong population and employment growth in the Austin MSA,” Matteo Pacifici, vice president with Trammell Crow Co., told Commercial Property Executive. “The successful speculative development of Phase I and the new FedEx BTS, now under construction, are a clear sign that market demand remains robust for high quality buildings near urban locations with convenient access to major roadways.”
The new FedEx facility, designed by Five South Architecture, will be home to a FedEx Express customer service and delivery center. CBRE’s John Barksdale and Darryl Dadon facilitated the lease agreement, along with Dale Clemments of Fischer & Co.
TCC and Clarion expect to complete Phase II of Park 183 in the fourth quarter of 2019, and the partners are already mulling the next steps for Phase III.
“We have not determined if we will begin Phase III speculatively at this time. However, we are very encouraged by market activity, enough so to complete all remaining infrastructure work as part of Phase II, as well as to complete design and begin the permitting process for Phase III,” Pacifici said. The third segment of the park will consist of two structures totaling approximately 300,000 square feet. “We will evaluate a speculative start in summer 2019, once permits have been secured,” he added.
Upon full build-out, Park 183 will feature seven buildings.