Ares Acquires 254K SF DFW Industrial Portfolio at Full Occupancy

Valwood’s Scarcity Drives Value

Ares Real Estate’s latest acquisition further cements investor focus on high-demand corridors in Dallas-Fort Worth, particularly where supply remains tightly constrained. According to Bisnow, the fund purchased the 254K SF Valwood Industrial Portfolio from Cohen Asset Management, capitalizing on the corridor’s rare combination of strong tenancy and minimal new construction.

The Valwood submarket, bounded by major highways (I-635, I-35E, and President George Bush Turnpike), reported less than 1M SF of new product delivered since 2021 and a current vacancy rate under 4%, per Cushman & Wakefield. This high-barrier-to-entry profile makes trades like this increasingly competitive, with well-capitalized buyers prioritizing locations offering durable occupancy and rental growth potential.

The Details

The Valwood Industrial Portfolio encompasses three buildings totaling 254K SF, located within Carrollton’s established distribution hub. The portfolio was fully leased at the time of sale, with a historical average occupancy of 97% since 2020 and a current average tenant tenure of 7.5 years. Cohen Asset Management was represented by Cushman & Wakefield’s Jud Clements, Jim Carpenter, Robby Rieke, Emily Brandt, and Trevor Berry. Marq Logistics will take over property management duties post-closing. Ares acquired the portfolio at a sizable discount to replacement cost, with Cushman & Wakefield noting the opportunity for mark-to-market rent increases on currently below-market leases.

Limited Supply, Lasting Demand

While the Dallas-Fort Worth metro ranked top for industrial deliveries in recent years, infill submarkets like Valwood tell a different story. Despite metro-wide development, Valwood only saw 1M SF delivered since 2021, keeping vacancies below the Metroplex average. That contrast stands out as newer industrial projects continue clustering elsewhere across DFW, leaving established infill corridors especially supply constrained.

With retailer and 3PL demand holding steady and many tenants locked into leases signed prior to the recent rent surge, investors are homing in on properties with clear mark-to-market potential. Per Cushman & Wakefield, leasing spreads on renewals and new deals in premier DFW industrial corridors routinely top double digits, underscoring the outsized returns now driving transaction volume amid broader asset class volatility.

Why It Matters

Ares gained a stabilized infill portfolio without the lease-up risk tied to speculative development. The assets sit in one of DFW’s strongest industrial submarkets. The portfolio combines full occupancy, long tenant tenures, and below-market rents. That mix gives Ares room to raise rents as leases renew.

Cushman & Wakefield said Ares bought the portfolio below replacement cost. Building similar assets today would cost much more. Rising land and construction costs continue to widen that gap.

The deal also shows strong institutional demand for core-plus industrial assets in prime DFW corridors. Meanwhile, investors remain cautious about riskier non-core properties across the US. CBRE reported DFW’s industrial vacancy rate at 6.6% in Q1 2026. Valwood remained even tighter. Therefore, investors continue favoring dependable cash flow and future rent growth.

What’s Next

Expect investors to pursue similar stabilized portfolios across high-demand DFW industrial corridors. Many will target assets with below-market leases and future rent growth.

More institutions will likely seek acquisitions below replacement cost. Frozen construction pipelines and tighter financing continue supporting that strategy. Ares will now focus on asset management and lease mark-to-market opportunities. Meanwhile, limited new supply should support rent growth and property values across core DFW industrial markets.