DALLAS – January 10, 2022 – CapRock Partners, a leading industrial real estate investor, developer and asset manager in the Western U.S., today announced its expansion into Texas. Led by CapRock’s Co-Founder and President, Jon Pharris, the firm has opened a new office location in the Dallas-Fort Worth market. CapRock is actively pursuing value-add industrial real estate investment opportunities as well as land sites for large-scale logistics development in targeted locations throughout Texas. Pharris maintains his current title and role at CapRock, where he is fully involved in running the company’s day-to-day operations.
CapRock’s move into Texas is a natural progression of the firm’s strategic growth and is the next step in its deliberate expansion into strong U.S. logistics markets with positive economic fundamentals. In 2020, the firm opened offices in Northern California and Phoenix to support its acquisition, development and asset management activities in those markets.
CapRock is one of the fastest-growing investors and developers of industrial real estate in the Western U.S. and since its founding has acquired, entitled, developed, or has in its pipeline nearly 30 million square feet. With a robust pipeline, CapRock will be under construction on approximately 10 million square feet in the next twelve months.
“The Dallas/Fort Worth Metroplex is a vital North American logistics hub and CapRock is excited to officially establish a presence here,” said Pharris. “Our executive leadership has deep roots in Texas, and we are mindful of the state’s unique culture and values, which are built into the foundation of our firm. As we integrate into the DFW industrial real estate market, CapRock is looking to build a robust local team to execute on our development and investment strategies.”
CapRock is well-capitalized and positioned to acquire assets in Texas that meet its criteria. The firm plans to execute its proven value-add strategy, identifying underutilized assets that present opportunity for investment and repositioning. It is also seeking locations to develop state-of-the-art industrial warehouse and logistics facilities given the firm’s reputation as one of the largest developers in the southwest. With an initial focus on DFW submarkets, CapRock plans to eventually target opportunities in additional Texas logistics hubs such as Houston and San Antonio/Austin.
“CapRock creates value for its investors by developing Class A industrial real estate assets, and by transforming dated and functionally obsolete properties into modern facilities that meet the needs of today’s most sophisticated distribution, logistics and manufacturing companies,” said Pharris. “As CapRock establishes its portfolio in Texas, we look forward to applying our development experience in one of the nation’s largest and most important logistics markets.”
With a population of approximately 7.6 million, the Dallas–Fort Worth–Arlington metropolitan statistical area (MSA) is the most populous metropolitan area in both Texas and the Southern U.S. People from all over the U.S. are drawn to the MSA’s temperate weather, affordable lifestyle, highly skilled workforce, established infrastructure, low regulations and business-friendly climate. Growing rapidly, the MSA added more than 1.2 million residents in the last decade, a 20% increase since 2010, according to U.S. Census data.
The DFW Metroplex is one of the top industrial real estate markets in the U.S. It serves the logistics and distribution needs of the MSA and is a critical node in the larger North American supply chain, providing exceptional connectivity through intermodal, rail, trucking and air transport. Driven by increased ecommerce activity, demand for more warehouse space continues in and around Greater DFW. According to Cushman & Wakefield, the DFW industrial market has absorbed a total of 23.9 million square feet in 2021 as of Q3, with a declining vacancy rate of 6.6%.
“CapRock is committed to supporting the growth and development of the U.S. supply chain through the creation of world-class logistics facilities,” said Patrick Daniels, co-founder and chief executive officer of CapRock Partners. “CapRock established itself in the Southern California, Phoenix and Las Vegas industrial markets, and in 2020, our firm was one of the most active developers in those markets. In applying our well-known entrepreneurial approach and our team’s robust experience and expertise, CapRock will be delivering more institutional-quality industrial real estate assets in Texas.”
“As someone with strong Texas roots, who worked the first 12 years of my career at Trammell Crow Company and Hillwood, two significant Dallas-based real estate corporations, I have always had a great appreciation for Texas’ unique culture and values,” added Daniels, who is an alumnus of the University of Texas at Austin and currently on the advisory board for the school’s Cockrell School of Engineering. “Collectively, CapRock’s co-founders instilled these values of professionalism, integrity and hard work, into our firm’s inner-workings, and they are instrumental in our team’s ongoing success. We are pleased to continue CapRock’s trajectory of growth and kick off our next phase of expansion in Texas.”
CapRock recently closed its oversubscribed CapRock Logistics Venture I, which is already nearly fully allocated and will fund its nearly $2 billion pipeline of Class A industrial development in California, Arizona, and Nevada. Many of these projects are already under construction with this venture anticipated to develop upwards of 15 million square feet in the next couple of years.
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