Four aging office buildings in Farmers Branch are headed for demolition as Foundry Commercial pushes forward with its latest office-to-industrial conversion, a move that taps into the white-hot demand for infill warehouse space across Dallas-Fort Worth. The developer has closed on the suburban complex and plans to replace it with a roughly 125,000-square-foot industrial facility that it says should be ready by mid-2027. Neighbors can expect demolition crews and site-prep activity to ramp up in the coming months as permits and pre-construction work advance.
Terms and timeline
In its project announcement, Foundry Commercial outlines plans to redevelop the Villa Creek site into a 125,758-square-foot Class A industrial building with 32-foot clear heights, 28 dock-high doors and two drive-in doors. The firm says it executed an efficient pre-closing process that cleared out more than 50 tenants and advanced entitlements so construction could start sooner. Foundry is targeting a July 2027 delivery for the new warehouse.
Where the site sits
Industry data services describe the property as a modest suburban office campus along Villa Creek Drive in Farmers Branch. CoStar tracks the campus as four low-rise office buildings, while Boxer Property's local listings show that the asset had been marketed as traditional office space before the sale.
Why developers are tearing down offices
Developers say projects like Villa Creek are a direct response to the shortage of well-located infill industrial land in DFW and the waning appeal of older office product. Converting outdated campuses into modern warehouse space, they argue, taps into a deeper pool of demand that office landlords are struggling to reach. Industry outlets tracking Foundry's activity in North Texas point to a growing slate of large acquisitions and repeat conversions that suggest the strategy is taking root across the region. As reported by The Real Deal, the pattern in North Texas lines up with broader industrial demand and a limited supply of ready-to-go infill sites.
City incentives and next steps
The City of Farmers Branch legislative packet details a resolution approving an economic development incentive agreement with Foundry Commercial Acquisitions, LLC. The agreement allows for a performance-based grant of up to $250,000 to help support construction. City documents note plans to demolish roughly 140,000 square feet of older Class C office space, an estimated construction cost of about $28 million, and an anticipated rear-load configuration for the new industrial building. The incentive is structured to be tied to project performance and to track with the permitting and entitlement schedule.
Foundry describes Villa Creek as its 12th office-to-industrial conversion nationally and its seventh such project in the Dallas-Fort Worth market, which the company holds up as proof that its playbook for reworking obsolete office assets is repeatable. The deal was sourced by Marty Neilon of Foundry’s Dallas team and, according to the developer, moved forward more quickly thanks to pre-closing coordination with the seller to clear the site for redevelopment. Residents and commuters can expect a steady stream of permit filings, demolition notices, and construction-related traffic updates from the city as the project shifts into full build-out mode over the next year.
