- Creation and PGIM Real Estate are redeveloping a former landfill site in northwest Dallas into a 600K SF logistics complex.
- The project, dubbed 635 Exchange, will consist of three buildings across 36 acres, with delivery expected by fall 2026.
- Despite a slight rise in vacancy, Dallas-Fort Worth continues to show strong industrial absorption, now marking 60 consecutive quarters of positive demand.
Turning Waste Into Warehouse Space
A former City of Dallas landfill is getting a second life—this time as a logistics hub, reports TheRealDeal. Developer Creation and institutional investor PGIM Real Estate have officially broken ground on 635 Exchange, a three-building, 600K SF industrial project in northwest Dallas.
Located at 11535 Newberry Street, the 36-acre site sits where Interstates 35 and 635 meet in northwest Dallas. As a result, it offers strategic access to DFW International Airport, providing a key distribution advantage.
The Details
Creation and PGIM secured $65.5M in construction financing, arranged by JLL Capital Markets. Consequently, the project is set for fall 2026 delivery.
At the groundbreaking, Creation donated $25K to CLC Inc.’s YouthBuild. The nonprofit provides vocational training for at-risk youth, adding a workforce development angle to the project’s community impact.
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Market Context
DFW’s industrial sector remains one of the country’s most resilient. Despite a minor rise in vacancy to 9%, the region notched its 60th straight quarter of positive absorption, per CBRE. A notable uptick in pre-leased space—from 18.4% to 40%—signals ongoing tenant confidence.
While manufacturing drove most of the recent leasing activity, demand for logistics space continues to rise. Key hotspots include South Dallas and Northwest Fort Worth, home to Hillwood’s AllianceTexas megadevelopment.
Why It Matters
The 635 Exchange project shows how developers are using brownfield redevelopment to meet surging demand for logistics real estate in key US markets. For investors like PGIM, the bet is on long-term supply chain shifts and e-commerce growth. These trends will likely fuel industrial demand, especially in business-friendly metros like Dallas.
What’s Next
With industrial fundamentals remaining strong and pre-leasing on the rise, vacancy is projected to fall. Projects like 635 Exchange are well-positioned to ride the next wave of logistics-driven development in the region.
