CapRock Partners, a Southern California-based real estate firm, has purchased 32.5 acres in Sunnyvale, a suburb of east Dallas, Texas. The company plans to develop the land into an industrial park named Clay Road Business Park. The park will consist of three warehouse buildings with a total area of 518,000 square feet. This project marks CapRock’s first ground-up construction in Texas, with groundbreaking scheduled for next year and completion anticipated in 2026.
Features of Clay Road Business Park
Clay Road Business Park will include three shallow-bay warehouse buildings, each offering modern industrial amenities. The buildings will have 32-foot clear heights, dock-high and ramp loading doors, ESFR sprinklers, and trailer parking. The development is strategically located at 101 Clay Road, just 15 miles from downtown Dallas and 35 miles from Dallas-Fort Worth International Airport, positioning it in a key industrial submarket of the region.
Notable Tenants and Investors in the Area
The area surrounding Clay Road Business Park is home to major distribution companies such as FedEx Freight, Lineage Cold Storage, Daltile, Pep Boys, and General Dynamics. Prominent institutional investors like Blackstone, Clarion, Exeter, Goldman Sachs, and Prologis are also active in the region. CapRock acquired the property through an off-market deal, with JLL’s industrial brokerage team, including Kurt Griffin, Nathan Orbin, Dalton Knipe, and Weston King, representing the firm.
CapRock’s Growing Presence in Texas
Although Clay Road Business Park is CapRock’s first Texas development project, the company has already established a footprint in the state. Earlier this year, CapRock acquired the Peachtree Distribution Center, a 396,750-square-foot facility in Mesquite, another Dallas-Fort Worth submarket. In total, the firm now has approximately 2 million square feet of industrial properties in Texas, including acquisitions, properties under contract, and developments in progress.
Dallas-Fort Worth Industrial Market Trends
The industrial market in the Dallas-Fort Worth area continues to thrive. According to Newmark, the region saw 9 million square feet of positive absorption in the second quarter of 2024, keeping pace with the previous year’s activity. Rental rates increased by 9.4% year-over-year, reaching $9.85 per square foot, a historical high for the market. Developers have responded to this demand, with 20.7 million square feet of industrial space under construction during the same period, though vacancy rates rose to 9.6%, up 280 basis points from the previous year.
