7 minute read
Under the wire
from CCR Issue 4, 2022
Under the wire Decision to move forward with major construction pays off at TexAmericas Center
By Eric Voyles
TexAmericas Center knew 10 years ago there would soon be a demand for more industrial space for manufacturers and businesses in America. What no one could predict was a pandemic would accelerate that demand. In October 2020, right before another wave in the pandemic came crashing down, TexAmericas Center broke ground on a 150,000-square-foot spec building, with the initial goal of finishing construction at the end of summer 2021.
Despite all the uncertainties of the pandemic, disruptions to businesses across the country, and ambiguity in the economy, TexAmericas Center made the decision to move forward. In fact, everything leading up to the groundbreaking was deliberate and well-timed, and leaders felt confident in continuing with the multi-million-dollar project. Timing (and planning) is everything
TexAmericas Center is based in the Texarkana MSA, Texas, near the Texas-Arkansas border. The organization owns and operates one of the largest mixed-use industrial parks in the United States, with 12,000 acres and 3.5 million square feet of commercial and industrial property and services four states: Texas, Arkansas, Louisiana and Oklahoma. A cluster of 12 warehouse buildings about 22,000 square feet each had mostly been leased by 2019, and the interest in space wasn’t slowing. The organization was missing lead opportunities from site selectors, commercial real estate agents and other interested parties because they did not have a quality building available to put to market.
The last spec building had been built on the property about 15 years earlier, and its 75,000 square feet of space was leased and occupied. As COVID-19 entered the picture in early 2020, the TexAmericas Center Board of Directors endorsed a decision to move forward with the new spec building project. Timing was everything, and just a little luck was on TexAmericas Center’s side. Plans were put on paper, crews were hired, and what turned out to be key in pushing the project through was all construction materials—from lumber to steel and tools—were ordered before the country experienced disruptions to the supply chain and labor market. “We had our purchase orders in early without even knowing how critical that would be to the project’s success” says Scott Norton, Executive Director and CEO of TexAmericas Center.
To give an idea of the project timeline, the request for work went out May 31, 2020, and the first round of qualifications were due in less than 30 days. With safety in mind, TexAmericas Center asked contractors who might be interested in the project to put a team together and report back on their qualifications. That saved time and money and allowed for just one point of contact. The team was surprised to receive 10 submissions from local and regional companies. Looking back, TexAmericas Center leaders recall small moments that felt different because of the pandemic, like reviewing the first round of submissions for the spec building while sitting on a back patio at home. When it came time to hold meetings with prospective parties, everyone came together in a big room, spread out and socially distanced. On the job site, all necessary precautions were considered to keep the project safe and productive. The field was narrowed from 10 submissions to five, eventually landing on MW Builders, a nationally respected and relationship-driven commercial construction company with locations in Austin, Dallas, Kansas City and Midland. The project did not experience any delays in receiving materials until builders got to the punch list items. That only delayed the project a couple months, with the goal of having the keys to the building in August extended to October 2021. “Despite the pandemic, we stayed with our plans and now the spec building brings immediate value, not only to TexAmericas Center, but also to our economy—and at a time that it’s so badly needed,” Norton says.
Along with MW Builders, leaders worked with other community economic development professionals to plan the building, which includes features that are attractive to potential tenants, is flexible across a variety of industries, and scalable to meet a host of needs. The building is designed as a multi-tenant, mixed-use facility with 32-foot clear height ceilings, one dock door per 5,000 square feet, and two drive-in doors. It can accommodate uses like large warehousing inventory akin to what you would find in a large metro market, but with the capability to subdivide down to 13,000-square-foot units as needed.
Lessons learned
Since construction was completed, TexAmericas Center has been fielding calls from companies across the nation looking for space to expand business. Not only is there demand, but construction during the pandemic has inspired TexAmericas Center to be ready to help businesses grow out of these unprecedented times. Decentralization and smaller footprints are being sought by companies, so is outsourcing to third party logistics. TexAmericas Center is also seeing movement away from trucking to rail as truck driver shortages, gas prices, and supply chain disruptions persist. The pandemic, in turn, has actually helped improve these conversations as well. Just recently, a company called to inquire about expansion to a business-friendly climate. TexAmericas Center immediately pivoted to the online sales presentation. The company can show them a construction camera, the spec building, drone images, and do virtual site tours. “Some of these things were being done right before the pandemic, but the pandemic absolutely forced everyone to do them better,” Norton says.
Future goals
This will not be the last new building at TexAmericas Center. Given the amount of excitement generated about the spec building, the company will expand its built-tosuit- offerings in the near future. Additionally, TexAmericas Center has already identified third party logistics as a service companies are immediately seeking to mitigate disruptions to the labor market. “When we manage the work force with 3PL, we minimize risk for our clients,” Norton says. “In 2021, we expanded this service line to four tenant companies.” Leaders at TexAmericas Center acknowledge how much they have learned during the pandemic, but say their forward thinking allowed them to forge ahead with plans put in place before it began. “We didn’t have to react,” Norton says. “Things in the economy that we saw coming, happened. It was an opportune time for us to meet the needs of businesses. We’ll continue to identify those needs and innovate to help the world’s economy.” CCR
Eric Voyles is the Executive VP and Chief Economic Development Officer at TexAmericas Center. TexAmericas Center is one of the largest mixed-use industrial parks in the Americas, with 12,000 acres and 3.5 million square feet of commercial and industrial property.
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