Dallas-based real estate development company Jackson-Shaw has officially broken ground and obtained its first tenant for Lakeview Business District in Rowlett.
Upon completion, the master-planned Lakeview Business District will span seven buildings across 165 acres and more than 1.7 million square feet. It is located along President George Bush Turnpike near Merritt and Liberty Grove Roads.
The project’s first tenant is chassis assembly and component manufacturer SAF Holland Group. It has leased a more than 256,000-square-foot building, which is expected to be finished in March 2025.
Lakeview Business District’s first phase will include five buildings with more than 1 million square feet.
A state filing shows the construction cost for the project is estimated at over $15.8 million.
Jackson-Shaw brought in Compatriot Capital as equity partner on the development, while Bank OZK and Affinius Capital LLC have provided financing.
Its general contractor is Peinado Construction, with Pross Design Group, Inc. serving as architect. Hunt & Joiner is the structural engineer and Kimley Horn is the civil engineer.
Commercial real estate services firm Avison Young US reported in its first quarter analysis of the Dallas-Fort Worth industrial space that vacancy rose to 11.1% during Q1 2024 compared to 9.7% at the end of 2023.
The firm noted that the market hasn’t hit this level since the Dot Com Bust or Great Recession recovery — but the drivers are different.
“Rather than the deep demand decline that drove the past increases, this time the increase is almost entirely due to the lag in lease-up of DFW’s extraordinarily high development pipeline,” the report said.
“Our review underscores that the newest product is leasing, but it is the volume of [speculative] deliveries that is driving vacancy up.”
