Jones' Blue Star Adds $19M Industrial Wing to Prosper Project

Key Takeaway

• Jerry Jones' Blue Star Land is expanding the Gates of Prosper with a $19 million, 152,000 sq ft industrial addition, starting August for completion in May 2025.
• The expansion contrasts with the firm's retail-heavy developments and marks a significant move into industrial real estate.
• Other Texas industrial moves include Ross Perot Jr.'s Hillwood acquiring a $106.5 million Amazon center in Florida and local transactions indicating robust market activity.

Expanding Industrial Horizons in Texas

Jerry Jones' Blue Star Land, in collaboration with Lincoln Property Company, is embarking on a significant expansion of its industrial footprint within the Gates of Prosper, a sprawling 800-acre mixed-use development. This ambitious project involves the construction of two new warehouses, totaling almost 152,000 square feet, marking the third phase of the development's industrial component. With a projected start in August and completion by May 2025, this nearly $19 million investment underscores a broader trend of industrial growth in Texas, a state already known for its dynamic real estate market.

The Gates of Prosper: A Mixed-Use Marvel

The Gates of Prosper has evolved into a notable example of mixed-use development, blending over 800,000 square feet of retail space with industrial and commercial components. Anchor tenants like Dick’s Sporting Goods, Kohl’s, and Hobby Lobby highlight the retail success of the project, which is now set to further diversify with the addition of substantial industrial space. This development strategy not only enhances the economic landscape of Prosper but also reflects the increasing demand for industrial real estate in strategic locations.

Texas: A Magnet for Industrial Development

The industrial real estate sector in Texas is witnessing significant activity, with Jerry Jones' Blue Star Land and other prominent developers like Ross Perot Jr.'s Hillwood engaging in high-profile transactions. Hillwood's recent acquisition of a 1 million square foot Amazon fulfillment center in Florida for $106.5 million, alongside local and regional industrial developments, illustrates the sector's vitality. Furthermore, the sale of a Houston industrial property and plans by Crow Holdings and KBC Advisors to construct large-scale industrial buildings in Grand Prairie and Baytown, respectively, signal a robust and expanding industrial market in Texas.

Strategic Implications for the Industrial Sector

The industrial expansion by Blue Star Land at the Gates of Prosper is emblematic of a larger trend towards the diversification and growth of industrial real estate in key markets. This move, alongside other significant developments in the state, highlights the strategic importance of Texas as a hub for industrial and commercial activity. The focus on mixed-use developments that incorporate industrial components reflects a nuanced understanding of market demands and the importance of strategic location in driving economic growth and attracting major tenants.