News Summary
Trammell Crow Company has commenced construction on Passport Park West, a large-scale industrial project located near DFW International Airport. The first phase will provide 1.75 million square feet of industrial space, with completion expected by 2026. The project aims to meet rising demand for warehouse facilities in the Dallas-Fort Worth area, which currently features high industrial vacancy rates. With ongoing expansions and modern design considerations, Passport Park West reflects the city’s growth and commitment to sustainability in industrial development.
Dallas, Texas – Trammell Crow Company has launched construction on a massive industrial project named Passport Park West, which is one of the largest speculative industrial developments in the United States in the past year. The project is situated on 180 acres at the southern edge of DFW International Airport and spans a total area of 2.7 million square feet of industrial space.
The first phase of Passport Park West is anticipated to provide approximately 1.75 million square feet across three buildings, with completion slated for the first quarter of 2026. Among these buildings, the largest will feature a footprint exceeding 1 million square feet. A second phase is planned, which will add an additional 950,000 square feet of warehouse space divided among four buildings, although start dates for this phase have yet to be announced.
Strategic Location and Design
Located in a prime area, the Passport Park West project will benefit from exceptional access to labor and logistics, making it an attractive option for prospective tenants. The architectural design aims to reflect modern standards while incorporating sustainability efforts, reinforcing the project’s commitment to environmental considerations.
Market Context and Demand
The launch of Passport Park West builds on the success of the broader Passport Park development initiated in 2018. This earlier phase successfully delivered over 2 million square feet of industrial space by 2020, showcasing the ongoing demand for industrial facilities in the region.
The Dallas-Fort Worth area currently boasts 120 million square feet of available industrial space, with industrial vacancies reaching 14% as of the end of 2024 — the highest vacancy rate recorded since 2011. This brings attention to the dynamic nature of the regional market as companies continue to seek adequate warehouse space amid growing e-commerce activities.
According to the Dallas City Office of Economic Development, the real estate tax base in the city has grown by 8% over the last fiscal year, largely propelled by new housing developments and significant industrial expansion. This tax base rose from $178.75 billion in 2023 to $193.27 billion in 2024. The values for residential properties have increased by 10.13% year-over-year, while commercial real estate values saw a rise of 6.11%.
Concerns and Challenges
Despite the growth, some city council members have expressed concerns regarding the implications of tax abatements on city services. Nonetheless, the region remains a leader in the nation for industrial market activity, with approximately 24.1 million square feet of industrial space currently under construction across 96 properties.
Future of Industrial Development
The industrial sector in Dallas-Fort Worth has seen a substantial growth of 24.6% in square footage, culminating in a total of 223.25 million square feet for the fiscal year 2023-2024. This growth is significantly driven by an 8% increase in online sales noted from 2023 to 2024, indicating strong e-commerce performance nationally.
The South Dallas industrial market alone has delivered over 78 million square feet in the last two decades, adapting to the evolving demand for data centers and artificial intelligence computing facilities. However, the increasing competition for land driven by data center developers may lead to tightening supply in this market.
The current development pipeline in South Dallas stands at around 22 million square feet and is expected to stabilize over the next six to seven years, based on historical absorption rates. This anticipated equilibrium suggests a proactive approach to meet both industrial and technological needs in this rapidly changing market.
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Additional Resources
- Dallas News: Developer Plots 180-Acre Industrial Park
- Wikipedia: Industrial Development
- Candy’s Dirt: Dallas Sees 8% Jump in Real Estate Values
- Google Search: Dallas Real Estate Growth
- Dallas Express: DFW Leads in Industrial Development
- Google Scholar: Industrial Development Dallas
- D Magazine: Shift in South Dallas Industrial Landscape
- Encyclopedia Britannica: Industrial Real Estate
- Colliers: South Dallas Industrial News
- Google News: Dallas Industrial Real Estate
