Too early to bet on "Big Dig" in Texas
Industrial Analysis: It's Too Early for Trans-Texas Corridor Bets
April 21, 2006
By Connie Gore
GlobeSt.com
Copyright 2006
DALLAS-With planning in its infancy for a 521-mile toll road bisecting Texas, industrial leaders in the region say the $6-billion proposal isn't impacting their land-buying strategies, as yet. Logistically, the Trans-Texas Corridor plan is viewed as a winner, but it's too far out in the future to start placing bets.
The toll road, eyed as an anti-congestion vehicle for Interstate 35, isn't slated for completion until 2015. There are years to go with environmental hurdles, public hearings and final drafts before the first spade of dirt would ever turn.
In the interim, the region's heavyweight developers are staying focused on South Dallas, looking to get their market share in a land rush to neighbor Union Pacific Railroad's intermodal yard and be part of an inland port that relies on Interstate 20 as the main link to all points north, east, south and west. Besides, it could be 2011 before the Trans-Texas Corridor's path is known. Based on a recent report, an estimated 2,400 square miles of land would have to be acquired for the highway's path.
"Most investments are being made in the intermodal facility and Interstate 20 in South Dallas. It's the best investment," says Jon Napper, Texas partner for Sacramento-based Panattoni Development Co. Should the Trans-Texas Corridor become reality, he says "it's still an eight-hour drive to Laredo," reinforcing South Dallas as the best bet from a trucking and logistics standpoint. "From an industrial perspective, no one is trying to pick up sites between here and Laredo," he tells GlobeSt.com.
As it stands, the initial map swings the proposed 10 mile-wide road to the east side of Dallas/Fort Worth. "As far as serving the highest population, which is what distribution is all about, it's going to go east," says Dan W. Cook, senior director for Cushman & Wakefield of Texas Inc.'s global supply chain solutions. "I think an alignment of the Trans-Texas Corridor to the east of the metroplex will improve the flow of goods through Texas. But, I can guarantee you that Tarrant County and Fort Worth are going to put their plan on the plate too."
Cook says the final route might shift the distribution channel, but it won't "draw it away entirely" from the region's interior freeways. The guarantee, he says, are the two intermodal terminals, UP's in South Dallas and Burlington Northern Santa Fe's AllianceTexas facility off Interstate 35W in northeast Tarrant.
"From an industrial, distribution and general logistics perspective, in concept, it's an excellent idea," assesses Robert Kramp, vice president and director of national client services for Grubb & Ellis Co. In the overall scheme, he says not even the toll is a deterrent. "We certainly have had a success in building toll roads in Texas," he says. "And, drivers seem willing to pay if it shaves time. If it improves mobility and at the same time increases logistics efficiency, then a fee structure seems reasonable."
Kramp says Central Texas stands to be one of the biggest winners from the plan because the route, as it's now proposed, would loop around San Antonio and Austin. "It will open up major distribution areas and position the state to be even more of a competitive force for all of North and Central America," he concludes.
Greg Fuller, managing director for Dallas-based Granite Properties, says north-south travelers will have to evaluate the cost of paying a toll versus the benefit of being able to circumvent traffic snarls. "You don't have an option to I-35 if you're going north and south," he points out. "It's a cost-benefit they'll have to weigh."
Fuller says the Granite team has been looking for land along Interstate 35, particularly since it started a hard push about two years ago to strengthen its industrial footprint. "I wouldn't say we looked for land along that path as it relates to the Trans-Texas Corridor, but we have looked for land along I-35," he says. "There are a million reasons to be located along I-35, none of which are solely related to the Trans-Texas Corridor."
History, though, has taught transportation planners that the best-laid plans can often erode existing business corridors when they are bypassed. "It's too early to tell one way or the other," Kramp says. "If it proceeds as planned, there will be some big winners, but there will be some big losers too. Like Boston's Big Dig, it was years and years in the planning but it certainly changed the Downtown. While it's not perfect, it has improved Downtown Boston."
The next step for the state and its Madrid-based private planner, Cintra-Zachry, will be to hold public meetings across the state. The first of 50 sessions were to get under way in May, but dates and locations have yet to be announced
Copyright © 2006 Real Estate Media www.globest.com
April 21, 2006
By Connie Gore
GlobeSt.com
Copyright 2006
DALLAS-With planning in its infancy for a 521-mile toll road bisecting Texas, industrial leaders in the region say the $6-billion proposal isn't impacting their land-buying strategies, as yet. Logistically, the Trans-Texas Corridor plan is viewed as a winner, but it's too far out in the future to start placing bets.
The toll road, eyed as an anti-congestion vehicle for Interstate 35, isn't slated for completion until 2015. There are years to go with environmental hurdles, public hearings and final drafts before the first spade of dirt would ever turn.
In the interim, the region's heavyweight developers are staying focused on South Dallas, looking to get their market share in a land rush to neighbor Union Pacific Railroad's intermodal yard and be part of an inland port that relies on Interstate 20 as the main link to all points north, east, south and west. Besides, it could be 2011 before the Trans-Texas Corridor's path is known. Based on a recent report, an estimated 2,400 square miles of land would have to be acquired for the highway's path.
"Most investments are being made in the intermodal facility and Interstate 20 in South Dallas. It's the best investment," says Jon Napper, Texas partner for Sacramento-based Panattoni Development Co. Should the Trans-Texas Corridor become reality, he says "it's still an eight-hour drive to Laredo," reinforcing South Dallas as the best bet from a trucking and logistics standpoint. "From an industrial perspective, no one is trying to pick up sites between here and Laredo," he tells GlobeSt.com.
As it stands, the initial map swings the proposed 10 mile-wide road to the east side of Dallas/Fort Worth. "As far as serving the highest population, which is what distribution is all about, it's going to go east," says Dan W. Cook, senior director for Cushman & Wakefield of Texas Inc.'s global supply chain solutions. "I think an alignment of the Trans-Texas Corridor to the east of the metroplex will improve the flow of goods through Texas. But, I can guarantee you that Tarrant County and Fort Worth are going to put their plan on the plate too."
Cook says the final route might shift the distribution channel, but it won't "draw it away entirely" from the region's interior freeways. The guarantee, he says, are the two intermodal terminals, UP's in South Dallas and Burlington Northern Santa Fe's AllianceTexas facility off Interstate 35W in northeast Tarrant.
"From an industrial, distribution and general logistics perspective, in concept, it's an excellent idea," assesses Robert Kramp, vice president and director of national client services for Grubb & Ellis Co. In the overall scheme, he says not even the toll is a deterrent. "We certainly have had a success in building toll roads in Texas," he says. "And, drivers seem willing to pay if it shaves time. If it improves mobility and at the same time increases logistics efficiency, then a fee structure seems reasonable."
Kramp says Central Texas stands to be one of the biggest winners from the plan because the route, as it's now proposed, would loop around San Antonio and Austin. "It will open up major distribution areas and position the state to be even more of a competitive force for all of North and Central America," he concludes.
Greg Fuller, managing director for Dallas-based Granite Properties, says north-south travelers will have to evaluate the cost of paying a toll versus the benefit of being able to circumvent traffic snarls. "You don't have an option to I-35 if you're going north and south," he points out. "It's a cost-benefit they'll have to weigh."
Fuller says the Granite team has been looking for land along Interstate 35, particularly since it started a hard push about two years ago to strengthen its industrial footprint. "I wouldn't say we looked for land along that path as it relates to the Trans-Texas Corridor, but we have looked for land along I-35," he says. "There are a million reasons to be located along I-35, none of which are solely related to the Trans-Texas Corridor."
History, though, has taught transportation planners that the best-laid plans can often erode existing business corridors when they are bypassed. "It's too early to tell one way or the other," Kramp says. "If it proceeds as planned, there will be some big winners, but there will be some big losers too. Like Boston's Big Dig, it was years and years in the planning but it certainly changed the Downtown. While it's not perfect, it has improved Downtown Boston."
The next step for the state and its Madrid-based private planner, Cintra-Zachry, will be to hold public meetings across the state. The first of 50 sessions were to get under way in May, but dates and locations have yet to be announced
Copyright © 2006 Real Estate Media
posted by Porkus Maximus Tex: at Friday, April 21, 2006
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