Target is leasing a massive new facility in North Fort Worth that will serve as a major regional shipping hub for the department store chain.
The facility is an industrial spec building called Alliance Center East 1. It is located in Alliance across from the community airport at Westport Parkway on Interstate 35W.
Spanning a total of 1.24 million square feet, the property has plenty of surrounding real estate to build additional buildings and expand parking if necessary. Its leasing stands as the largest warehouse deal in North Texas during the second quarter of 2022, according to The Dallas Morning News.
Construction on the building began in July of last year. The developer, Hillwood, intended to market toward companies focused on logistics and e-commerce transactions with an emphasis on rapid deliveries.
Target has had a presence in Texas since 1968, when the company’s first store in the state opened in North Dallas on Montford Drive. The store is still open today, along with approximately 150 others scattered around the state. Only California surpasses Texas in the number of Target stores, according to MinnPost.
The retailer had slowed opening new stores in Texas following the extended economic downturn in the late 2000s. However, its expansion rebounded in 2015 with the opening of a 122,000-square-foot store in Fort Worth.
Target’s recent leasing in Alliance comes less than two months after the company’s stock price took a major hit following a drop in first-quarter profits of approximately 48%, as reported in The Dallas Express. In just one day, Target’s stock price fell roughly 25% and has yet to see a significant uptick as inflation and supply-chain issues continue to punish big-box retailers.
At present, North Texas has more than 70 million square feet of construction taking place to build distribution centers and warehouse space.
The rapid pace of building could slow due to financing concerns related to rising interest rates, according to the DMN. Still, the need for additional warehouse space is evidenced by the fact that just 5% of warehouse space in the Dallas-Fort Worth market remained available at the end of last month.
