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

Cushman &Wakefield Dallas

DFW Airport

The DFW Airport industrial submarket has a central location with excellent access to multiple major transportation arteries in the greater DFW metroplex and enjoys the highest tenant demand for warehouse/ distribution space. The submarket’s inventory stock is composed of both fee simple ownership and DFW Airport ground leased developments. Since 2015, demand has kept up with new supply and the DFW Airport submarket has played a leading role in absorption for the overall DFW market. 380

Developable infill sites in the DFW Airport submarket are nearly non-existent. This, along with the submarket’s strong leasing velocity on the northern side of the airport, motivated DFW Airport to open up the southern end for ground leased development opportunities. The first wave of new inventory from this opportunity has about 3.1 MSF delivering by year-end. As vacancy remains below the historical average, rates continue to drive upward to meet the elevated demand. 75

OVER THE LAST 12 MONTHS, DFW AIRPORT HAS

ABSORBED 5.4 MSF, NEARLY DOUBLE THE AMOUNT OF NEW DELIVERIES.

DENTON

35

35E

LITTLE ELM

380

CORINTH

35W

FRISCO

ALLEN

HIGHLAND VILLAGE

75

PLANO OBSERVATIONS & TRENDS

35E

121

FLOWER MOUND

MURPHY • Strong leasing velocity of new supply in the submarket, as 81% of deliveries over the last 12 months has leased • DFW Airport closed the first half of 2018 with a record high level of construction activity, at 5.4 MSF of new supply under construction • Of DFW Airport’s 5.4 MSF under construction, 3.9 MSF is set to deliver by year-end, 87% of which is speculative product • The submarket’s mid-year leasing activity was 1.9 MSF, the majority of which will be absorbed in 3Q and 4Q of this year RICHARDSON HIGHLAND PARK 30 30 635 12 75 75

E

114

ADDISON

SOUTHLAKE

CARROLLTON

35E

121

GRAPEVINE

635

FARMERS BRANCH

DFW AIRPORT

114

635

TH LAND LS

360

COLLEYVILLE

114

121

12

BEDFORD

EULESS

35E

183

183

IRVING

820

DALLAS

80

360

30

30

GRAND PRAIRIE

ARLINGTON

12

35E

FORNEY

45

12

175

34 Q2 2018

20

BALCH SPRINGS

12

20

20

20