ROANOKE, TX-With a record-breaking leasing year to support the move, Hillwood is building a 402,000-sf spec office/warehouse in AllianceTexas to replenish its ready-to-go stock. Last year, the Hillwood team leased 3.5 million sf, surpassing its prior record by 700,000 sf.
With the site work now done, the construction crew is ready to pour the slab for Alliance Gateway 62 at 400 Patriot Parkway. Bill Burton, senior vice president for Hillwood Properties, tells GlobeSt.com that the development team tapped 20 acres of rail-served land for the next project in response to last year’s leasing demand. “In the past year, we’ve seen a noticeable increase in the amount of rail-served requirements,” he says.
Burton says there are many rail-served buildings in AllianceTexas, but they’re leased–2.5 million sf on the southern side of Texas 170 and a 500,000-sf warehouse on the northern bound. The 17,000-acre AllianceTexas has another two million sf that could have, but don’t have, spurs at their sides.
With last year’s record-setting leasing, AllianceTexas’ available inventory dropped to 600,000 sf in four buildings–none of it along the railroad tracks. Hillwood’s MO has always been to keep one million sf ready to go so its dealmakers had space to lease or sell. “It’s time,” Burton says. “We need to get this one out there.” The front-row seat along the Union Pacific line will deliver in April.
Despite increased rising construction costs, the shell space is being quoted in the low $3-per-sf range. “Rising construction costs gives everyone cause to think about it,” Burton says. He points out Hillwood has leveraged the play by selecting Denton County land, with one of the lowest tax rates in the metroplex, and a location with a compelling logistics story. “At the end of the day,” he says, “we think we can deliver a competitively priced product.”