Creation and PGIM Real Estate have started construction on a 600,000-square-foot logistics hub in northwest Dallas. The project, called 635 Exchange, is being built on a 36-acre site that was previously used as a City of Dallas landfill at 11535 Newberry Street. The joint venture expects to complete the development by next fall.
The location sits at the intersection of Interstates 35 and 635, providing access to DFW International Airport. Creation, based in Dallas, partnered with PGIM—the asset management arm of Prudential Financial—to secure a $65.5 million construction loan for the project. JLL Capital Markets arranged the financing.
At the groundbreaking event, Creation donated $25,000 to CLC Inc.’s YouthBuild project. This program offers education and job training for at-risk youth.
PGIM’s Soultana Reigle commented on the project’s prospects: “The timing of this project will allow it to benefit from structural tailwinds in supply-chain optimization and e-commerce demand.”
Dallas-Fort Worth’s industrial real estate market remains strong despite a recent increase in vacancy rates. In the third quarter, less than three percent of new deliveries were pre-leased, which led to an increase in vacancy rates to nine percent. However, the percentage of pre-leased properties under development rose significantly by the end of the quarter, suggesting that vacancy rates may decrease soon.
Manufacturing activity accounted for most leasing demand during this period. South Dallas and Northwest Fort Worth are currently among the region’s most sought-after industrial submarkets.
