Medline Breaks Ground on 1.2 MSF Warehouse

Medline has kicked off construction on a second distribution center within the Metroplex. This 1.2 million-square-foot development in Midlothian, Texas, will represent the company’s 45th distribution center across the U.S. once it becomes operational next year. Medline invested $150 million in this project, according to reporting by the Dallas Business Journal.

This property will complement the company’s first warehouse in Dallas-Fort Worth, an 800,000-square-foot facility in Wilmer, Texas, serving health-care providers including hospitals, ambulatory surgery centers, physician offices, nursing homes and hospices.

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Medline plans to implement an advanced storage and retrieval system at the Midlothian facility, similar to the one it already operates at the Wilmer warehouse. The firm owns more than 26 million square feet of warehouse space across the nation.

This project reflects a recent industrial market trend whereby tenant demand for big-box industrial properties has grown. National leasing deals surpassing the 500,000-square-foot benchmark spiked 32 percent year-over-year in 2025, according to a Cushman & Wakefield analysis.

User-owned purchases for the same asset type also surged 68 percent year-over-year, denoting limited lease availability and fewer large speculative projects, the analysis also shows.

Appetite for big-box industrial rises in Dallas

Dallas-Fort Worth’s industrial market sees the same tendency, with big-box warehouses attracting outsized interest. In fact, submarkets where such product is abundant, such as South Dallas and Alliance, had their vacancies go down 6 percent and 3.3 percent year-over-year in the fourth quarter of 2025, respectively, according to a Cushman & Wakefield report.

Overall, 19.6 million square feet of industrial space debuted last year, the report shows. Absorption reached 31.1 million square feet, the largest since 2022, bringing down the vacancy rate 150 basis points year-over-year to 8.2 percent in December.

However, big-box industrial projects aren’t only user-owned. Just last month, Hillwood broke ground on a speculative 1.2 million-square-foot warehouse in Fort Worth, Texas, within the company’s 27,000-acre master-planned development.