L’Oréal Enters Dallas Market with Massive Distribution Center

By Camelia Bulea, Associate Editor

The world’s largest cosmetics, beauty and hair-care company, The L’Oréal Group, is reportedly planning to build a 513,000-square-foot regional distribution hub in southern Dallas County.

Such a project would add a lot of value to south Dallas, where development has been a top priority for Mayor Mike Rawlings, the creator of the GrowSouth plan. Business opportunities in the area that are mapped out in the plan include attractive location, available land and an inland port, noted the Dallas Business Journal. In exchange, the combination of jobs created by such a project and the significant infrastructural investment that L’Oréal would make could represent an important economic boost for the region.

The cost required to build the project is $22.5 million. Additionally, L’Oréal would have to invest $6.5 million in business equipment for the facility and between $3.5 million and $5 million to develop public infrastructure on the land, according to the Business Journal.

As for the human resources involved in the project, the distribution center could create more than 90 jobs initially, with growth potential for as many as 125 positions. Moreover, a substantial construction crew would have to be hired to build the massive center.

A recent CBRE report on the DFW industrial market shows that the area attracted some really large leases during the second quarter of this year, when the total net absorption of industrial space was 3.8 million square feet. Additionally, construction continued to slowly increase in the DFW market in the second quarter, with 1.4 million square feet under construction. CBRE also reported that South Dallas contributed much of the new industrial space built during that period.

Photo rendering of L’Oréal Canada’s distribution center, courtesy of L’ Oréal Sustainable Development

Charts courtesy of CBRE