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f there is one thing there's a good supply of in Texas – besides cowboy boots – it's space. Expanding operations generally is not a problem for Texas communities. Two of them, Richardson and Austin, will soon be supporting not one, but two semiconductor plants each. Most investors in Texas operations – both developers and corporate end users – need room to expand sooner or later. That might mean a rural location. But they don't want to sacrifice the logistics benefits of being near a major metro area with solid transportation assets.
   The Dallas- Fort Worth area is a case in point. Lately, the economic development engine that is the Dallas- Fort Worth International Airport (DFW) seems stuck in overdrive. Developers are filling new workspace as fast as they can build it, and the nearer to the airport that space is, the better.
   "You can get anywhere in the continental U.S. in four hours from DFW and most places in three," says Tom Allen, a partner at developer Maguire Partners and president of Solana, a 900- acre (364- hectare) master- planned development roughly mid- way between DFW and Alliance Airport northwest of Dallas. "Alliance handles mainly air cargo and general aviation, which takes the pressure off of DFW, allowing it to continue to grow forever in terms of passenger traffic," says Allen. "It would be very difficult for anyone to duplicate the size of DFW and its 365 days a year of flying ability in a central U.S. location."
   Solana houses about 3 million sq. ft. (278,700 sq. m.) of space, and Maguire will begin construction on an additional 4.5 million sq. ft. (418,000 sq. m.) of space on a 300- acre (121- hectare) parcel in late 2006.
   The DFW area is one of two high- growth sectors in the Metroplex – the other is north of town between Interstate 35 and U.S. 75. "Most of the relocating companies are going to congregate around the airport, which is one of the reasons they are coming here," says Allen. "Proximity to DFW airport is always number one on their list of location criteria. And for companies that are already here, it's very important." But space is increasingly tight.
   The airport submarket has been the most vibrant for the past five years; 13 of the past 16 quarters have registered positive gains in net absorption, according to Duke Realty Corp. In June, Duke announced plans to develop a speculative 527,000- sq.- ft. (49,000- sq.- m.) bulk distribution warehouse on 30 acres (12 hectares) owned by the DFW Airport Board.
   "Land is so scarce that many developers have been attracted [to deals] such as the one we have signed with the Airport Board within its International Commerce Board," says Jeff Turner, senior vice president of Duke's Dallas operations. "The submarket is so energized, we felt it was critical that we get more space on the ground immediately," he adds. Occupancy is near 100 percent at Duke's Freeport North Park in Coppell, where it owns 3.8 million sq. ft. (353,000 sq. m.) of space.
   Finding tenants for the new building should not be a problem.
   "With no remaining uncontrolled industrial land sites available in close proximity to DFW Airport, developing on the airport is a viable option," says Lizzie Pappachen- Blake, associate director at Cushman & Wakefield of Texas. "Tenants enjoy being close to the airport, proven by the almost 3.2 million square feet [297,000 sq. m.] absorbed in the Irving/Coppell market in 2005 and the continued activity in 2006."
   Adds John Terrell, vice president of commercial development at DFW, "The development will add to the quality and increase the capacity of International Commerce Park as well as indirectly support our cargo operations at Dallas Fort Worth International Airport."
   As this issue went to press, final approval was pending from the city councils of Dallas and Fort Worth to award Chesapeake Energy Corp. a lease on DFW property of 18,000 net acres (7,290 hectares) of Barnett Shale leasehold for $181 million in cash and a 25- percent royalty. On the acreage that underlies the airport, Chesapeake has identified approximately 250 potential drill sites that will be developed from approximately 20 well pad sites on DFW land. The DFW Airport Board and the cities of Dallas and Fort Worth deemed Chesapeake the best bidder for the lease. Including an estimated $750 million of capital needed to fully develop an estimated 470 billion cubic feet of unproved natural gas preserves, Chesapeake's all- in acquisition cost to develop the DFW leasehold will be $1.98 per thousand cubic feet of natural gas.