- Majestic Realty will not sell or lease its 1M KSF Hutchins, TX warehouse for detention facility use.
- ICE had considered the property as part of its national detention facilities expansion.
- Local officials raised concerns over population impact if the site were used for detaining 9,500 people.
- Other landlords in the US have also declined ICE-related deals while some facilities continue to trade for conversion.
Landlord Rejects Detention Facility Use
CoStar reports that Majestic Realty will not sell or lease its 1M KSF warehouse in Hutchins, Texas, for detention use. The California-based owner controls 92M SF nationwide. Federal officials approached the firm about potential negotiations for the property south of Dallas. However, Majestic Realty rejected any deal involving detention facilities.
Local Concerns Spur Decision
Local officials raised concerns about the proposal. They warned the site could more than double Hutchins’ population if it housed 9,500 detainees. The debate highlights how large industrial projects can significantly alter small-city demographics and infrastructure planning, as seen in other recent North Texas warehouse developments. In response, Majestic Realty reaffirmed its commitment to the city. The company said it will pursue buyers or tenants that support economic growth in North Texas. It also made clear that detention uses remain off the table.
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Detention Facilities Expansion Efforts
Meanwhile, US Immigration and Customs Enforcement continues to seek industrial space for detention expansion. Some landlords in North Texas and other markets have declined similar proposals. Still, other owners have moved forward with conversions in Texas, Georgia, Arizona, Maryland, and Pennsylvania. Researchers have tracked seven completed deals nationwide. These transactions show a split among landlords as demand rises and public opposition grows.
What’s Next for the Site
For now, Majestic Realty will continue marketing the Hutchins warehouse. The firm aims to attract users aligned with local goals and market demand. Despite ICE’s ongoing search for space, the property will not become a detention facility.
