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The tech sector in Dallas-Fort Worth is fueling leasing activity locally.

 

by Bob Mohr | Originally published in D Magazine

When it comes to Texas and technology, people invariably think of Austin. And while it’s true the Capital City attracts a lot of tech talent and tech companies, it’s a mistake to overlook Dallas-Fort Worth, which is a tech hub in its own right.

Consider this: 14 Dallas-area companies ranked in Deloitte’s 2021 Technology Fast 500, an annual ranking of the fastest-growing technology, media, telecommunications, life sciences, fintech, and energy tech companies in North America. Only 10 Austin companies made the list.

Technology is fueling DFW’s economic engine. As more companies in the metro hire tech talent to expand their business, the impact is rippling throughout DFW’s real estate markets, generating demand for housing, retail, industrial, and healthcare properties.

Is every company a tech company?

In DFW, tech employment is dispersed among a wide range of industries, from financial services to e-commerce. Moreover, the lines that define technology are blurring. Today, a vast majority of companies could be considered technology firms, based on the critical role technology plays in their operations.

For example, most people would agree that Texas Instruments is a tech company. It is expanding in North Texas with plans to build up to four new manufacturing plants in Sherman. The 300-millimeter semiconductor wafer fabrication plants could result in a potential $30 billion investment from TI. They could also support as many as 3,000 jobs once complete.

But what about Charles Schwab or Walmart? Though Schwab is a well-known financial services firm, it is adding 180 tech-specific roles in North Texas to handle the influx of new brokerage accounts it has seen during the pandemic. It already employs more than 5,100 people across DFW including 2,800 at its Westlake corporate campus.  These new jobs are part of the company’s push to hire 700 tech positions nationally.

Read the full article at D Magazine.

Industrial real estate owners are smiling right now.

At the close of the third quarter, the industrial market broke “every” U.S. record. Vacancy is at 3.6% and 450 million square feet is under construction with 1/3 of that pre-leased, while 300 million square feet has been absorbed already in 2021.

Industrial development has been a key component of our business for some time. Unlike other fair-weather investor-developers who are chasing a hot market, Mohr Capital has been working with corporate users to build or occupy industrial facilities for more than 20 years.

Our experience sets us apart – as well as a single source of capital that allows us to move quickly to get out of the ground while demand remains high. When it comes to our track record, we let our long history of development do the talking.

However, beyond the pandemic’s impact on the sector, I also think it’s important for us to share our knowledge with industry colleagues and corporate users on other variables impacting industrial development like land prices and availability, the risks of acquiring unimproved sites, the trend toward tilt-wall construction, and how “user” friendly right-turn-only sites with expansive trailer parking are all the rage.

For our “tenant-side” partners, market rents seem to be increasing by 10% throughout the country, so quicker decisions and long-range planning will be required to control occupancy cost. This is especially true as the supply chain problems will take a year or more to work their way through the system.

Insight like this can only come from long-time industrial professionals. To expand on this effort, Mohr Capital has also launched a dedicated land acquisitions team to push development efforts into overdrive with prospects in Reno and Fernley, NV, Phoenix, Indianapolis, Dallas and Ohio.

Until then, Mohr Capital is well-positioned to take advantage of the industrial real estate segment and to monetize these opportunities for our corporate clients.

Best,

Bob Mohr
Founder & Chairman
Mohr Capital

 

Lee Loftis and Carson Horn

The Hunt for Land

In August, Mohr Capital brought on an experienced land pro, Lee Loftis, to head up our land acquisitions practice. A month later, we grew that team, welcoming analyst Carson Horn to work with Lee to identify, entitle and close on land sites in key markets, including Dallas, Austin, Columbus, Savannah, Charleston, Charlotte, Lakeland and Phoenix.

Read More

 

A User on the Cutting Edge

In September, we secured a lease extension and expansion with Arrive Logistics at our MetCenter flex space in Austin. The facility serves as headquarters for the leading Austin-based freight brokerage, and as part of its long-term growth plans, we worked with Arrive to expand its occupancy from 78,000 SF to 116,000 SF through December 2031.

Read More

 

Bob Mohr on the CRE Project Podcast

Talking Industrial with the King

Also in September, I sat down with Clayton King of King Capital to talk about how Mohr Capital has managed to thrive during the pandemic when many CRE firms have struggled. We also dived into the state of retail, industrial and office segments, and I shared my take on what’s currently impacting each segment and what the future holds.

Read More

 

Mohr Logistics Park in Indianapolis

Keeping Pace in Indianapolis

The industrial market in Indianapolis is growing at a record-setting pace, and it’s also home to Mohr Logistics Park, a 475+ acre master-planned industrial park. I recently spoke with Mickey Shuey of the Indianapolis Business Journal to give an update on our park and discuss why companies are turning to Indianapolis to satisfy their need for more space.

Read More

 

Bob Mohr at Bisnow's DFW Industrial and Logistics Outlook

Setting the Stage in Dallas

In early November, I joined CBRE's Jack Fraker, Hillwood Properties' Tom Fishman, and Dalfen Industrial's Sean Dalfen to discuss trends shaping the industrial market in Dallas and across the nation. The panel session was part of Bisnow's DFW Industrial and Logistics Outlook, and I enjoyed the lively discussion with my fellow panelists, as well as hearing from other DFW-area industrial players.

Because improved land is hard to come by, more investors and developers are evaluating true greenfield opportunities in far outer rings of major markets.

 

By Lee Loftis | Featured in Area Development

Across the nation, finding well-positioned, developable land with utilities and infrastructure has become almost impossible in some areas. Just about all of it has been scooped up by hungry buyers. Competition for land zoned for industrial/warehouse development is particularly intense.

Owners with any inclination of selling have already done so, or their land is under contract. For the owners still holding onto their land, the question is, what will entice them to finally sell? Buyers would be wrong to assume it’s all about price. The market has reached a remarkable level of efficiency when it comes to pricing, and developers know exactly how much they’re willing to offer for a piece of land based on construction costs and lease rates.

Many sellers, driven by concerns about capital gains taxes, have put land under contract stipulating a closing by year-end. Though many buyers have agreed, it will be interesting to see how many are truly able to close. If those deals fall through, opportunities might arise in first quarter 2022. Successful developers who are closely attuned to the market will be able to strike quickly and capitalize on these unclosed deals.

Read the full article at Area Development.

Arrive Logistics shows how tenant demand is driving market

 

By Parimal M. Rohit | Originally Published in the Austin Business Journal

Investor interest and tenant demand continue to drive heightened activity in what is arguably the Austin area's strongest real estate asset class: industrial.

Already this month a nearly 400,000-square-foot industrial business park has changed hands and a pair of companies announced significant expansions in industrial space, including a roughly 21,000-square-foot lease in Taylor that will serve as a springboard for a food manufacturer's national expansion.

NAI Partners’ most recent market snapshot of the Austin-area industrial sector, released Sept. 17, showed demand for industrial space far outpaced supply during the first eight months of 2021. Demand was at 4 million square feet between January and August, compared to a supply of 1.2 million square feet.

Arrive Logistics eats up more space

Austin-based Arrive Logistics Inc. has expanded and extended its lease with landlord Mohr Capital in MetCenter Business Park, a 550-acre business park near Austin-Bergstrom International Airport, it was announced on Sept. 14.

Arrive, a freight brokerage that has seen its headcount and revenue surge in recent years, signed a 116,000-square-foot lease in MetCenter’s Building 15, which is 38,000 square feet larger than the 78,000-square-foot flex space the freight brokerage previously had at buildings 14 and 15.

Arrive had more than 850 employees working at buildings 14 and 15. The freight brokerage plans to hire another 1,000 employees within the next 12 months, according to an Arrive spokesperson.

The company recorded revenue of nearly $811 million in 2020, according to Austin Business Journal list research.

The lease expansion and extension will run through December 2031.

“The trend in tech and logistics companies seeking flex office/industrial space outside of Austin’s urban core has only continued to grow,” Rodrigo Godoi, managing director of investments for Mohr Capital, said in a statement. “Arrive Logistics is a perfect example of a credit tenant on the cutting edge of its real estate strategy. We’re pleased to have worked with the company to negotiate its lease expansion and long-term occupancy in one of Austin’s most desirable mixed-use business parks.”

In 2019, Dallas-based Mohr Capital acquired five buildings encompassing 404,800 square feet in MetCenter from Zydeco Development. Mohr sold one of those buildings, occupied by Amazon, in May.

Visit the Austin Business Journal to read the full article.

By Mickey Shuey | Originally published in the Indianapolis Business Journal

The Indianapolis industrial market is growing at a record pace, continuing a trend that began in the months ahead of the coronavirus’ arrival in early 2020.

More than 22 million square feet of space is already under construction, with some brokerages estimating several million more will break ground by the end of the year. And markets that have begun heating up over the past few years—particularly Whiteland in Johnson County and Mount Comfort in Hancock County—are starting to see extensive development and leasing activity.

In Whiteland, Mohr Capital recently broke ground on multiple buildings of nearly 1 million square feet as part of its Mohr Logistics Park, at the northwest corner of Interstate 65 and Whiteland Road. Cooper Tire moved into its nearly 950,000-square-foot building at the park in the second quarter.

So far, 3.5 million square feet of space is under construction or has been completed on the property. The Mohr development could near 8 million square feet when it’s fully built out in the years ahead, occupying more than 500 acres—nearly the size of the downtown Indianapolis mile square.

Bob Mohr, chairman of Dallas-based Mohr Capital and an Indianapolis native, said what’s happening in Indianapolis is a national phenomenon, albeit one from which Indianapolis is benefiting.

“Industrial [development faced] a big whammy of everything being backed up because of the pandemic, causing significant disruption to global trade. Then you have corporations that are reconfiguring all of their supply chain,” he said. “When you combine those things together, you get a big blow-up in industrial requirements” that have led more companies to seek space.

Mohr said the move to build in Whiteland was driven by a host of factors, including land availability—and, in turn, lower costs—more appetite for incentives from the town, and a stronger labor pool driven by the scarcity of industrial buildings in the area.

Visit the Indianapolis Business Journal to read the full article.

Listen to Bob Mohr on the CRE Project Podcast

Mohr Capital Chairman Bob Mohr recently sat down with The CRE Project Podcast with Clayton King to discuss how he built two successful commercial real estate firms, and how Mohr Capital has thrived during the pandemic when most CRE firms have struggled.

Bob and Clayton also dive into the state of retail, industrial and office segments, and Bob provides his take on the current events and future of each segment.

 

It's been a busy six months, and we're just getting started.

We’ve officially reached the middle of 2021 and it’s already been quite a year. To date, Mohr Capital has closed on nine transactions and broke new ground in the history of our firm.

On the office side, we acquired Riverwood Corporate Center II, an office building in the Milwaukee metro area. The new property is fully leased by the region’s largest healthcare provider and is proof positive that the office market is still alive and well when occupied by credit tenants. The deal follows our acquisition of another office building in Orlando occupied by Accredo Health earlier this year.

On the industrial side, Mohr Capital is reaching new heights. Recently we sold a last-mile distribution facility in Austin that CoStar called the “priciest deal of its kind.” And on the development side, we’ve made great progress on Mohr Logistics Park in Indianapolis, broke ground on a ~600K-SF industrial facility in Nevada (our first in this market), and delivered retail spaces for Regions Bank and Chipotle in the Houston area.

Our success in industrial is due in part to the rise in e-commerce, which has led to skyrocketing demand and even higher rents. We’ve helped our tenants navigate this environment well, and last month I shared what companies can do to get the industrial space they need at a reasonable price at industry conferences and in the media.

It’s been a busy six months for Mohr Capital, and we’re just getting started. In the second half of the year, we’ll be embarking on new investment strategies and we’re extremely excited for what’s to come. We hope this year has been as fruitful for you as it has for us.

Best,

Bob Mohr
Founder & Chairman
Mohr Capital

 

A Record-Breaking Sale

In May, we sold MetCenter Building III in Austin, a 160,000-square-foot industrial facility and 20-acre parking lot. We acquired the facility two years ago and while we intended to hold onto it, industrial demand in Austin resulted in an offer we couldn’t pass up – so much so that CoStar called it “one of the most expensive deals in the Lone Star State.”

Read More

 

Office is Alive and Well in Milwaukee

In April, we acquired Riverwood Corporate Center II, a 112,000-square-foot office building in the Milwaukee metro area. Along with the deal, we secured a long-term lease with the largest healthcare provider in the region, ProHealth Care. It’s been the company’s headquarters since the building was constructed and will continue to be its home for many years to come.

Read More

 

Everything's Coming Up Roses for the Industrial Market

Industrial real estate is on fire. However, high demand has resulted in sparse supply and high rates. In May and June, I talked about how tenants can get the industrial space they need at the Industrial Asset Management Council’s 2021 Spring Forum and in an op-ed article with D Magazine. I also participated in Wealth Management Real Estate’s 7th annual industrial survey, No End in Sight for Industrial’s Strong Run, where I shared my thoughts on the state of industrial demand.

Read more at D Magazine  |  Read more at Wealth Management Real Estate

 

New Market, New Opportunities

In June, we closed on 40 acres in the Tahoe-Reno Industrial Center – one of the largest industrial parks in the world – and started construction on a 600,00-square-foot speculative industrial facility. The development is our first in Nevada and will provide the market with a well-positioned, reasonably priced piece of real estate.

Read More

 

Wrapping Up Retail Developments

In February 2020, we acquired a restaurant site in The Woodlands, Texas – an affluent suburb just north of Houston – for redevelopment. Since then, we razed the existing structure, built two pad sites, and have delivered a Chipotle and Regions Bank branch.

Read More

 

Investing in the Next Generation

Helping young people become successful in the commercial real estate industry has been a focus of mine for the past 40 years. My current role as a member of the University of Notre Dame Fitzgerald Institute of Real Estate Advisory Board has enabled me to further that mission and support an institution in my home state that has been a significant part of my family’s life for years.

Read More

By Bob Mohr | Featured in Texas Real Estate Business, July 2021

When people talk about Austin, they call it one of the best places in the country to live. They talk about the live music scene, the die-hard fans who flock to The University of Texas football games and the hills spouting bluebonnets.

They talk about Austin attracting California residents and companies during the pandemic, bolstering the city’s tech base and positioning it as a significant Silicon Valley rival. They talk about office demand and increasing single-family housing costs.

Few people mention Austin’s industrial market, but they really should, because there’s a heck of lot to talk about. At 55 million square feet, Austin’s industrial market is still fairly small, especially compared with the Lone Star State’s big three metros of Dallas-Fort Worth, Houston and San Antonio.

Despite its size, the Austin industrial market is experiencing significant demand from various companies, particularly e-commerce and service-related tenants. And even though Austin tends to be a bit of a bubble market, money is flowing in the form of new construction and investor interest.

Potholes in Road to Expansion

Unless you’re Amazon or Tesla, it’s not easy to develop bulk industrial in the Austin area under normal circumstances, and the pandemic has made it even more challenging. The topography everyone loves so much because of the rolling hills makes industrial development difficult. Zoning adds another layer of complexity.

When it comes right down to it, Austin is a progressive city that is cautious about heavy industrial development. As a result, many developers who faced roadblocks before are having a tougher time now due to the city’s limited resources stemming from the pandemic.

Read the full article in Texas Real Estate Business’ July 2021 issue.

New Supply Maintains Healthy Balance

 

By Beth Mattson-Teig | Wealth Management Real Estate's 7th Annual Industrial Survey

The majority of respondents are also not worried about over supply. Those who think there is “too much” development occurring have remained in the minority for the past five years with a range of 7 percent to 11 percent, including 8.6 percent in the current survey. More respondents (42 percent) view the volume of new development occurring as the “right amount,” while those who think there is “too little” being built climbed from 22 percent in 2020 to 29 percent in this year’s survey.

State of Industrial Real Estate

According to Cushman & Wakefield, new supply totaled 352.9 million sq. ft. in 2020—a 5.7 percent increase compared to 2019. In addition, the firm was tracking 397.1 million sq. ft. of space under construction as of the first quarter of 2021.

Views were mixed on how much new supply their respective markets could absorb. Overall, 43  percent believe their markets could absorb 15 percent to 24 percent more new supply, while 38 percent said less than 15 percent of current inventory and 19 percent predict that their market could absorb more than 25 percent.

How Much More Industrial Real Estate Development

Mohr Capital is one firm that is planning to double its industrial development in 2021 with about 4.5 million sq. ft. of construction starts. The developer builds bulk warehouse facilities that it typically sells after securing leasing commitments from long-term, single net lease tenants. The group is developing a 7.5 million-sq.-ft. industrial park in suburban Indianapolis. They recently broke ground on a new 827,000-sq.-ft. spec bulk warehouse project at the Mohr Logistics Park. That project comes on the heels of a recently completed 1 million-sq.-ft. facility at the park that was fully leased to Cooper Tire & Rubber Co.

“The industrial market did take a pause last year, and everybody thought it was going to take a little bit longer to come out of the pandemic and turn around. But the industrial market is probably as hot as it’s ever been,” Bob Mohr, founder and chairman of Mohr Capital, a Dallas-based privately held real estate investment firm.

 

Read Bob Mohr’s thoughts on current industrial demand and why this sector was one of the star performers throughout the pandemic in “New Supply Maintains Health Balance” and “Debt Remains Available.”

Visit Wealth Management to read the publications 7th Annual Industrial Real Estate Survey, "No End in Sight for Industrial’s Strong Run" in full.

In an environment where demand exceeds supply, what can these companies do to ensure they have the industrial space they need?

 

By Bob Mohr  |  CRE Opinion  |  Featured in DMagazine

While DFW’s office market struggles with the thorny issue of returning to the office and how much space tenants will need in a post-pandemic world, the region’s industrial market is booming.

Across North Texas, demand for industrial space is pushing vacancies lower and rents higher. That’s great news for owners who are enjoying higher property values. But at the same time, industrial tenants are grappling with fewer options and higher occupancy costs.

In an environment where demand exceeds supply, what can these companies do to ensure they have the industrial space they need, when they need it, and for a price, they can live with?

Visit DMagazine to read the full article.

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