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DSV Eyes 905 KSF Laredo Facility

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The property will rise in a 2,000-acre logistics park along the U.S.-Mexico border. The post DSV Eyes 905 KSF Laredo Facility appeared first on Commercial Property Executive.

Property at 300 Salt Meadow Road, Carteret, N.J. — DSV’s U.S. footprint also includes a leased warehouse at 300 Salt Meadow Road in Carteret, N.J. *Image courtesy of Crow Holdings*

Danish logistics giant DSV is preparing to start work on a 905,000-square-foot distribution center in Laredo, Texas, according to documents filed with the city. The property will rise on 49 acres in Port Grande, the 1,992-acre master-planned campus located along the U.S.-Mexico border, adjacent to Interstate 35.

According to the development agreement signed with the city, Laredo offered a tax rebate to the developer worth $1.25 million over eight years. To receive that incentive, DSV has promised to create at least 178 jobs, and the O’Brien Architects-designed facility must be complete by 2028.

DSV oversees a growing industrial portfolio worldwide. The company reports that, in 2024, it added more than 360,000 square meters (nearly 3.9 million square feet) of new warehouse space, of which about 170,000 square meters (some 1.8 million square feet) was a net addition to the existing capacity.

DSV isn’t alone in beefing up its presence in Laredo, a South Texas border town with a high volume of goods flowing in both directions. Early this year, Standard Real Estate Investment Partners joined forces with Brennan Investment Group to build a 433,000-square-foot industrial project in the area.

There are currently over 58 active industrial parks in Laredo of various sizes and sites, according to the Laredo Economic Development Corp. The Port of Laredo has 47 million square feet of logistics space.

Flow of goods through Laredo increases

Though the impact of new tariffs on the cross-border flow of goods between the U.S. and Mexico remains unclear, the Port of Laredo has been increasingly busy in recent years. In 2024, trade at the port came in at about $339 billion, an increase of nearly 6 percent year-over-year. Exports totaled about $128.2 billion, up 4.12 percent, while imports were valued at about $210.7 billion, up 7.14 percent.

The U.S. total traded goods with Mexico came in at an estimated $839.9 billion in 2024, the Office of the U.S. Trade Representative reports. U.S. goods exports to Mexico in 2024 totaled $334 billion, up 3.5 percent from 2023, while imports totaled $505.9 billion last year, up 6.4 percent year-over-year.

Even so, markets seem worried about the impact of tariffs on industrial real estate. The S&P 500 Industrial REITs Sub-Industry Index, which had been losing ground slowly since early March after a post-New Year’s run up, dropped sharply the week the wide-ranging tariffs were announced, from just over 100 on April 2 to around 88 on April 4.

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