Facebook to Expand Data Center Campus in North Texas

Social Media Giant Files Plans to Spend $16 Billion This Year on Infrastructure

Social media giant Facebook is adding to its data center campus in Fort Worth, Texas, as part of plans to spend about $16 billion this year building out its infrastructure around the globe.

The Menlo Park, California-based social media behemoth opened the multibuilding, 1.5 million-square-foot data center campus in Fort Worth more than three years ago. Now Facebook is adding $6 million of utilities and underground space totaling 277,513 square feet, according to a state permit. 

Facebook is also building an $800 million, nearly 1 million-square-foot data center in a Nashville suburb that should be up and running in 2023, and is expanding its data center east of Atlanta where it will eventually have 2.5 million square feet as part of a $1 billion investment. In total, Facebook has 13 data centers in the United States and 17 across the globe either built or underway, according to the company’s website. 

Facebook trimmed its budget for data center construction this year to $16 billion from a previous range of $17 billion to $19 billion after having to stop construction in some places because of the pandemic, according to earnings statements. All of Facebook’s data centers use 100% renewable energy. 

Construction on the expansion in Fort Worth is expected to begin in November, and be finished by the end of September 2022, according to the state permit. Facebook did not immediately respond to an emailed request for comment. 

Facebook’s Fort Worth data center campus at AllianceTexas, a 26,000-acre master-planned, mixed-use community, is the largest data center in Texas, said Curt Holcomb, an executive vice president in JLL’s Dallas office and a co-leader of the brokerage firm’s data center solutions group.

“It’s the biggest data center I’ve seen in my career,” Holcomb said in an interview. “They have a lot of good infrastructure, power, water and fiber at AllianceTexas, which is a big reason why they ended up there. Dallas-Fort Worth is also one of the major data center markets, not only in the United States, but in the world.”

Facebook isn’t the only hyperscale data center user betting on the Dallas-Fort Worth region, with Google building a big data center campus near Dallas, which is being developed as part of the search engine’s larger $13 billion national expansion.

Facebook’s continued data center expansion in the North Texas region could inspire other hyperscale users or other data center tenants to follow suite, Holcomb said. 

“They obviously know what they are doing,” he added. “This could be trendsetting.”

By Candice Carlislem, CoStar News

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Analysts Weigh In On What CRE Can Expect For Each Asset Class In Q4

Most years, we are not ready to say goodbye to summer, but this year things are different. There is the economy, there is the election, there are kids and other loved ones at home, there are restrictions on what we can and cannot do, there is Zoom and there is a global pandemic.

And save one or two silver linings, none of it has been too kind to commercial real estate. No one knows when it will all end or get back to normal, but one thing that is normal is today — the day most of the business world says goodbye to summer and begins the mad dash to the end of the year.

You would never know it, but much has happened in 2020. If you’re suffering from pandemic haze and have lost track of where things stand in the industry, or even what day it is, Bisnow has you covered: We broke down all of the major commercial property asset classes to help you get up to speed — where the sectors have been since the beginning of the year, where they are now and what expert analysts think will happen as we march toward 2021.

Bisnow | Christie Moffat, Tim Carroll, Jon Banister, Dean Boerner, Kerri Panchuk, Jarred Schenke, Matthew Rothstein, Dees Stribling and Kelsey Neubauer.

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Dallas-Fort Worth’s Multifamily Market Is Weathering Economic Downturn

The Dallas-Fort Worth multifamily market posted respectable levels of demand through the second quarter even while the coronavirus pandemic and subsequent recession was taken hold.

The market reported absorption, the difference between move-ins and move-outs, of about 5,200 apartment units in second quarter. That level is on par with other second quarter levels in 2015-2017, when deliveries began to ramp up. But it is well-below levels in 2018 and 2019. Despite lower levels, Dallas-Fort Worth led the country in absorption through second quarter 2020

By Bill Kitchens
CoStar Analytics

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Office Sales Volume Remains Stable in Dallas-Fort Worth

While COVID-19 spreads across the Dallas-Fort Worth metroplex, and with many office employees continuing to work from home, the office market is evolving in its search for solid footing.

Following the initial outbreak of the pandemic, leasing volume plummeted in the second quarter, down 37% from the first quarter of 2020 and falling to the second-lowest level since 1995, as far back as CoStar’s historical data goes. The market recorded its first two consecutive quarters of negative net absorption, meaning more tenants moved out than in, and this trend is projected to continue into the third quarter

By Paul Hendershot
CoStar Analytics

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Land Deal Secures Financing to Start $100 Million Mixed-Use Project in Dallas Area

A developer has closed on a land tract in Dallas-Fort Worth after securing financing to build a $100 million mixed-use development.

The project, called Watson Branch, is planned for the 77-acre development site near Farm to Market Road 157 and Mouser Way, which is roughly 22 miles from downtown Fort Worth in Mansfield. Plans for Watson Branch include apartments, an active-adult property targeting residents 55 years and older, retail and restaurant space, a 10-acre park and single-family homes.

The master developer Realty Capital Management, based in Irving, Texas, is teaming up with Greystar Development to build a 190-unit active-adult property and Dallas-based Trinsic Residential for a 350-unit apartment complex. The 250 single-family homes are planned to feature lot sizes ranging from 50 feet down to 22 feet for townhomes.

The long-awaited land deal comes a year after Realty Capital Management successfully rezoned the tract for the mixed-use development after a series of city council meetings. Terms of the land deal were undisclosed.

“The planning of this development has been no small task,” said Tim Coltart, managing director of Realty Capital Management, in a statement. “This development represents years of hard work and coordination.”Coltart said the goal is to bring a mix of housing options with some new retail to the core of Mansfield, a suburban North Texas city with more than 75,000 residents. Recently, a Mansfield company bought Pier 1 Imports’ last remaining real estate holding, a distribution hub with plans to market the space for lease, in a move betting on the future growth of the city.

By Candace Carlisle

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