CBRE Investment Management Fund
A fund in the CBRE Strategic Partners U.S. series has acquired Westside 35, a newly constructed 540,000-square-foot two-building logistics property in the Fossil Creek/Meacham submarket in north Fort Worth, according to a press release.
The property was 100% pre-leased to three tenants.
Located at 2555 & 2575 Downing Drive, Westside 35 features new, state-of-the-art, single-load construction and highly functional Class A design.
Specifications include front-loading with 109 total dock doors, 36-foot clear heights, 185-foot truck courts, 107 trailer stalls, and an adjacent 7.1-acre land parcel to support additional future trailer parking.
The site is adjacent to the BNSF railway and two power substations, providing 3k amps of power to each building at the property with the ability to supply additional power for future tenant requirements.
“With nearly 400,000 households located within a 10-mile radius and 1 million households within a 20-mile radius, Westside 35 is in a strategic infill location that gives tenants operating fulfillment and last-mile distribution strong access to labor and enables them to efficiently serve the densely populated end-consumer base,” said Topper Sheehy, director of logistics acquisitions, CBRE Investment Management.
New development opportunities in the submarket are limited due to land constraints and macro-economic headwinds. The lack of supply, coupled with a strong demand for space near population growth and major thoroughfares, has contributed to high submarket occupancy and a low vacancy rate of 5.4% at the end of Q3 2022, which represents a 140bps decrease year-over-year.
“Modernity matters in logistics assets,” said Diann Hsueh, deputy portfolio manager, Strategic Partners U.S., CBRE Investment Management. “Westside 35 provides the amenities and building characteristics sophisticated tenants have come to expect in modern logistics warehouses.”
A recent survey found that a majority of logistics occupiers in the U.S. expect to expand their real estate footprints despite economic uncertainty, labor shortages and supply chain disruptions. Sixty-four percent of occupiers surveyed plan to expand their U.S. logistics footprint in the next three years, and 47% plan to expand by more than 10%.