C&W Industrial Insider Mid-Year Report -Q2 2018

Cushman &Wakefield Dallas

Alliance/North Fort Worth

The North Fort Worth and Alliance submarkets are situated along I-35W on the northwest edge of DFW. Both submarkets benefit from proximity to Alliance’s Global Logistics Hub, which includes the BNSF Railway Intermodal Terminal, Alliance Airport, and UPS and FedEx hubs. While Alliance has traditionally been a finite submarket mostly controlled by Hillwood, other developers are entering the area. However, limited land availability will constrict opportunities for competing projects. North Fort Worth is an infill submarket with few remaining large land parcels available for development. The DENTON 35E 35

submarket’s tenant base has a high percentage of rail users and light manufacturing. Both Alliance and North Fort Worth have been active in construction activity over the last several years and continue to experience impressive leasing velocity. Since 2015, the combined submarkets have delivered 14.2 MSF and have posted an overall net absorption of 15.1 MSF. Of the speculative assets delivered in both submarkets since 2015, 82% has leased. Both North Fort Worth and Alliance will remain important players for DFW as dynamic industrial submarkets. 75

ALLIANCE AND NORTH FORT WORTH COMBINED HAVE 4.6 MSF OF SPECULATIVE PRODUCT SET TO DELIVER BY YEAR-END

380

380

LITTLE ELM

CORINTH

35W

FRISCO

87

ALLEN

OBSERVATIONS & TRENDS HIGHLAND VILLAGE

75

PLANO

• New supply delivered in 2018 is expected to hit 6.4 MSF, more than doubling submarket deliveries for 2017 • Hillwood has plans to break ground on two new speculative buildings in Alliance next month (780K SF and 500K SF) and are in the design phase of their next 1 MSF speculative building that will be expandable to 1.5 MSF • New 203 acre development by DHL Real Estate Solutions, Elizabeth Creek Gateway, is expected to bring nearly 4 MSF of new product and represents one of few remaining non-Hillwood controlled developments RICHARDSON FARMERS BRANCH HIGHLAND PARK ADDISON CARROLLTON 30 635 635 635 35E 35E 35E 12 114 114 121 183 121 12 75

FLOWER MOUND

114

MURPHY

ROANOKE

114

SOUTHLAKE

35W

GRAPEVINE

287

ALLIANCE

KELLER

NORTH RICHLAND HILLS

360

COLLEYVILLE

121

NORTH FORT WORTH

BEDFORD

SAGINAW

EULESS

183

HALTOM CITY

IRVING

820

75

820

35W

DALLAS

80

121

360

30

30

WHITE SETTLEMENT

GRAND PRAIRIE

ARLINGTON

12

FORT WORTH

35E

30

45

12

820

175

24 Q2 2018

287

BALCH SPRINGS

12

20

820

20

20