Dallas Morning News Printing Plant in Plano Up for Sale

Dallas Morning News to Sell 29-Acre Plano Printing Plant, Downsize Operations

The Dallas Morning News is set to sell its 29-acre printing plant in Plano for a valuable price of $12.6 million due to the land's appraised value. This move comes as part of the company's strategy to relocate its printing operations to a smaller facility in Carrollton, resulting in a 60% staff reduction and an estimated annual savings of $5 million. The Plano property, constructed in the 1980s, is suitable for light industrial use, presenting opportunities for developments such as data centers or logistics operations. The new Carrollton facility, slated to be operational by early 2025, will integrate a new printing press funded by the company's cash reserves. Notably, the Dallas Morning News has emphasized its commitment to maintaining seven-day printing despite the downsizing.

Key Takeaways

• The Plano printing plant's total value stands at $12.6 million for land and $6.5 million for the building.
• Relocating to a smaller Carrollton facility is expected to yield $5 million in annual savings and lead to the elimination of 85 jobs.
• The new Carrollton facility, anticipated to be operational by 2025, will house an $8 million printing press, financed by cash reserves.
• The Plano property is zoned for light industrial use, with potential for data centers, self-storage facilities, or logistics operations.
• The Dallas Morning News remains committed to printing seven days a week, extending severance support to affected employees.

Analysis

The Dallas Morning News' decision to sell its Plano printing plant and downsize operations aligns with the broader industry trend toward digitalization and cost reduction. The move not only holds potential for financial benefit but also attracts prospective buyers interested in utilizing the property for data centers, self-storage facilities, or logistics operations, given its classification for light industrial zoning. The shift to Carrollton signifies substantial annual savings but also entails job losses affecting 85 employees.

This development also signals potential changes in the industrial landscapes of Dallas and Plano, along with the prospect of drawing in real estate investors due to the land's appraised value. However, monitoring the long-term effects on the local workforce and economy becomes crucial.

The newspaper's unwavering commitment to seven-day printing underscores its dedication to traditional print media despite the industry's digital transformation. In essence, this development sheds light on the challenges and transformations confronting print media, real estate, and regional economies.

Did You Know?

• Light Industrial Use Zoning: This zoning type allows for business operations that do not involve heavy manufacturing or significant noise, traffic, or pollution. It's attractive for businesses seeking easily accessible locations with a skilled workforce and minimal negative impact on residential areas.
• Capital Expenditures (CapEx): The $8 million investment in a new printing press represents a significant capital expenditure, reflecting strategic long-term operational capabilities investment.
• Severance Packages: Offered to the 85 employees impacted by the move, severance packages provide various benefits to ease the financial and emotional burden of job loss.