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

Cushman &Wakefield Dallas

Garland/Mesquite

Located on the eastern edge of the DFW metroplex, the Garland and Mesquite submarkets are attractive for their proximity to abundant labor and Interstate Freeways. Mesquite’s tenant base largely consists of 3PLs and manufacturing parts suppliers, while Garland’s has a higher percentage of owner/user tenants. The majority of Mesquite’s inventory centers around the Union Pacific Intermodal hub. Product type consists of mostly cross dock and front load space that is suitable for modern distribution requirements. The Garland submarket’s product type is more diverse, ranging from 380

multi-tenant office showroom/flex and manufacturing space to warehouse distribution, and is comprised of both older and newer building stock. Historically, the Mesquite submarket’s construction activity has been almost exclusively build to suits, however, there has recently been a shift and speculative developments are starting to balance construction activity. In Garland, developers are actively seeking redevelopment opportunities, and recent speculative developments in both the Garland and Mesquite submarkets have experienced healthy leasing velocity.

OVER THE NEXT 9 MONTHS, MESQUITE WILL DELIVER 2.3 MSF OF PRODUCT, THE MOST NEW INVENTORY THE SUBMARKET HAS SEEN IN TEN YEARS. 75

RISCO

ALLEN

75

PLANO

MURPHY

OBSERVATIONS & TRENDS

SON

RICHARDSON

• Overall vacancy for the Garland and Mesquite submarkets combined sustained its 2017 record low at 7.5% for the first half of 2018 • Despite having zero new supply deliver in both Garland and Mesquite for the first half of the year, the combined submarkets are expected to deliver 2.1 MSF by year-end. • Mesquite’s 2.7% increase in overall vacancy is a direct result of Shippers moving out of 420K SF at Eastpoint Business Center • Exeter Property Group has begun construction on 3 speculative buildings in Mesquite totaling nearly 1 MSF

75

30

GARLAND

635

12

HIGHLAND PARK

30

75

DALLAS

80

MESQUITE

5E

FORNEY

45

12

175

20

BALCH SPRINGS

20

HUTCHINS

35E

175

45

LANCASTER

WILMER

35E

48 Q2 2018