Nike USA Inc. has leased a 1-million-square-foot warehouse in southern Dallas County that is expected to be used as a regional distribution center for online goods.
As part of the lease announcement, Logistics Property Co. said it had fully rented The Southport Logistics Center building, a 3.55 million-square-foot, 252-acre business park located at 1300 Fulghum Road in Wilmer near Interstate 45.
While Logistics Property’s lease announcement did not explicitly name Nike as the tenant, the industrial real estate firm said that the tenant was an American multinational corporation in the business of “footwear, apparel, equipment, accessories, and services.”
We are “delighted to welcome our newest tenant to Southport,” said Max Mueller, Logistics Property Co.’s vice president. “We have no doubt that they are in good company alongside their high-caliber corporate neighbors at our rapidly growing industrial park.”
Although Nike was not formally identified as the tenant in the property owner’s lease announcement, the multinational retailer was recently granted $68,000 in annual tax breaks from the Dallas County Commissioners Court (DCCC) to be used for the establishment of a distribution facility in Wilmer.
Nike’s presence in southern Dallas County “would improve the build-to-suit facility to serve as a major distribution fulfillment center” and is expected to create and maintain 500 new jobs with an average salary of $37,000, as well as increase the county’s tax base by $60 million by January 1, 2025, the DCCC claimed in November.
CBRE Group, a Dallas-based commercial real estate investment firm, negotiated the distribution center lease.
“Less than 48 hours from every major market in North America, it’s the perfect logistics and manufacturing center for all types of operations, big or small,” said CBRE’s Kacy Jones, who helped negotiate the lease along with CBRE’s Dan Estes, John Hendricks, and Seth Kelly.
Logistics Property is also building a 620,000-square-foot warehouse in the Wilmer business park in order to meet the demand for industrial office parks in the Dallas region.
According to an Industrial Market Report by commercial property firm Avison Young, Dallas-Fort Worth is the nation’s fastest-growing industrial building market, “a top place to do business,” with a record 87 million square feet of warehouse and distribution space in the construction pipeline.
“DFW continues to advance its position as a major US logistics hub. Since its pre-pandemic employment peak at the end of 2019, DFW has expanded to 9.7% job growth across warehousing, wholesale trade, and manufacturing,” said the report.
“This growth underscores how strong industrial demand has been in DFW. The dominant sectors are transportation and warehousing and wholesale trade,” the report continued.
“DFW is a critical link in the US supply chain due to its central US location, its scale being the 4th largest metro, and its multi-modal access that can speed goods to markets across the US.”
In 2022, the Dallas region recorded six industrial leases of 1 million square feet or more, according to CBRE.