FORT WORTH, TEXAS — Atlanta-based investment and development firm Stonemont Financial Group has sold a newly built, 218,000-square-foot industrial building in North Fort Worth. Dot Foods purchased the building for an undisclosed price, and its subsidiary, OmniCable, will become the facility’s new tenant. Blaine Kelly of CBRE represented OmniCable and Dot Foods in the transaction. Becky Thompson of Lee & Associates represented Stonemont. The deal was finalized before the completion of construction, which began in mid-2022.
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Lee & Associates: Slowing Absorption, Rent Growth Put Brakes on New Development for Most Real Estate Types, Though Retail Sector Shines
Slower absorption and rent growth plagued industrial, office and multifamily asset classes across the United States in the third quarter, as outlined in Lee & Associates’ 2023 Q3 North America Market Report. Some regional exceptions were able to buck the overdevelopment trend, but retail was the only property type to avoid the quarter’s shift toward rising vacancy rates. High interest rates, slower rent growth and fear of overbuilding have contributed to lower construction starts in every sector. The full Lee & Associates report is available — including breakdowns of factors like detailed vacancy rates, inventory square footage, cap rates outlined city by city, market rents and more — here. The analysis below provides an overview of industrial, office, retail and multifamily real estate sectors alongside sector trends, economic background as well as geographic exceptions within each property type. Industrial Overview: Absorption Continues Slowing, Inventories to Spike Demand for industrial space remained positive in the United States in the third quarter, but growth this year has lost steam compared to strong net absorption totals of the last two years. U.S. net growth in the third quarter totaled 29.9 million square feet compared to 94 million square feet for the same period last year. …
DALLAS — Lee & Associates has negotiated a 19,791-square-foot industrial lease in northwest Dallas. According to LoopNet Inc., the property at 5145 Norwood Road was built in 1981, totals 43,040 square feet and features 22-foot clear heights, three drive-in bays and 156-foot truck court depths. Ally Tanghongs of Lee & Associates represented the Tenant, Xpress Foods, in the lease negotiations. Stephen Williamson and Matthew Johnson, also with Lee & Associates, represented the landlord, Stonelake Capital Partners.
DALLAS — Florida Tile has signed a 14,903-square-foot industrial lease in northwest Dallas. According to LoopNet Inc., the property at 9755 Clifford Drive was built on 8.2 acres in 2001 and totals 114,320 square feet. Adam Graham and Stephen Williamson of Lee & Associates represented the landlord, Prologis, in the lease negotiations. The tenant representative was not disclosed.
SCHAUMBURG, ILL. — Lee & Associates has brokered the sale of a 106,380-square-foot office building in the Chicago suburb of Schaumburg for $3.5 million. The five-story property is located at 930 National Parkway adjacent to Woodfield Mall. The building was originally constructed in 1989 for Cellular One and later occupied by Cingular and AT&T. Tony Russo and Ryan Freed of Lee & Associates represented the seller, Somoha LLC. The buyer, National India Hub Foundation, is a national Indian-American organization focused on local community outreach and volunteering. The buyer plans to convert the property into a multipurpose community center. Plans call for a charity clinic, conference rooms, indoor sports center, auditorium, donation center and event space.
ARLINGTON, TEXAS — Lee & Associates has negotiated a 22,200-square-foot industrial lease in Arlington. According to LoopNet Inc., the building at 1208 Commercial Blvd. N was built on 1.2 acres in 1995 and features 20-foot clear heights, two dock-high doors and three drive-in doors. Stephen Williamson of Lee & Associates represented the landlord, CPL Investments, in the lease negotiations. Eddie Yoo of Landmark Realty Group represented the tenant, logistics firm B.R. International USA.
CEDAR HILL, TEXAS — Lee & Associates has negotiated a 56,965-square-foot industrial lease in Cedar Hill, a southern suburb of Dallas. The tenant, Lakawana Realty Development, is taking space at Building 3 at High Point 67 Logistics Center, a 184-acre, 2 million-square-foot development by Hillwood. Stephen Williamson of Lee & Associates represented the tenant in the lease negotiations. Kacy Jones, Brian Gilchrist and Steve Koldyke of CBRE represented Hillwood.
DALLAS — Lee & Associates has negotiated the sale of a 26,000-square-foot industrial building in northwest Dallas. According to LoopNet Inc., the single-tenant building at 2925 Merrell Road was built on 2.5 acres in 1965, renovated in 2015 and features 12-foot clear heights. Stephen Williamson of Lee & Associates represented the buyer, Motor Sports, in the transaction. UPS Supply Chain Solutions sold the building for an undisclosed price.
FARMERS BRANCH, TEXAS — Multinational conglomerate Honeywell International has signed a 17,755-square-foot industrial lease in the northern Dallas metro of Farmers Branch. According to LoopNet Inc., the building at 12880 Valley Branch Lane was built in 1997, totals 75,502 square feet and features 24-foot clear heights. Nathan Denton and Adam Graham of Lee & Associates represented the landlord, GID Industrial, in the lease negotiations. Neil Schorr of Realty Insight Group represented Honeywell.
NEW YORK CITY — Advantage Capital Holdings has signed a 10,000-square-foot office lease at 1180 Avenue of the Americas in Midtown Manhattan. The 398,937-square-foot building recently underwent a value-add program. Bryan Boisi, Michael Baraldi, Harry Blair and Mark Boisi of Cushman & Wakefield represented the landlord, Northwood Investors, in the lease negotiations. Justin Myers and Dennis Someck of Lee & Associates represented the tenant, which is taking space on the 21st floor.