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

Cushman &Wakefield Dallas

Great Southwest

Great Southwest (GSW) is the largest DFW submarket, accounting for 15% of greater DFW industrial inventory. High tenant demand has consistently remained elevated in the area, a result of its central location, proximity to labor, and access to major thoroughfares and DFW International Airport. GSW is home to a wide variety of tenants from a size and operations standpoint. National retailers/ 3PLs and local distributors alike desire the submarket for its prime location. The submarket’s inventory consists of a combination of dated product that struggles to meet today’s supply chain PLANO FRISCO LITTLE ELM ADDISON CARROLLTON 35E 121 380

standards and newer, modern and efficient building stock delivered over the current cycle. Leading DFW in 2017 construction deliveries and net absorption, GSW continues to outpace the rest of the Metroplex at the mid year point posting 3.8 MSF of deliveries and nearly 7 MSF of net absorption year- to-date. Demand has met influx of new supply in GSW over the last 12 months, significantly lowering the submarket’s overall vacancy. Cushman & Wakefield is currently tracking 5 MSF of active tenant requirements in GSW with 2018 occupancy timelines and 1.6 MSF of speculative product expected to deliver by year-end. MURPHY ALLEN 75 75 380

DENTON

35

35E

CORINTH

35W

GSW CLOSES Q2 2018 WITH AN

HIGHLAND VILLAGE

OVERALL VACANCY OF 6.9%, DOWN 2.4% FROM YEAR-END 2017

35E

FLOWER MOUND

OANOKE

114

SOUTHLAKE

RICHARDSON

121

75

GRAPEVINE

635

30

FARMERS BRANCH

114

R

635

NORTH RICHLAND HILLS

360

COLLEYVILLE

635

114

121

12

12

BEDFORD

OBSERVATIONS & TRENDS HIGHLAND PARK 30

EULESS

35E

183

183

ALTOM CITY

IRVING

75

820

• DFW’s hottest industrial submarket with not only highest tenant demand but also highest demand among developers and investors • At the mid-year point, GSW leads the other DFW submarkets with 6.8 MSF in overall net absorption • About 38% of the submarket’s mid-year absorption is a result of the completion of the General Motors assembly plant expansion and Northpoint Development’s delivery of 1.25 MSF at Arlington Logistics Center, a build-to-suit project accommodating suppliers to the General Motors plant. • FedEx Freight opened a new 365,000 SF terminal on Bardin Road at I-20 in Arlington, a development of Liberty Property Trust LANCASTER HUTCHINS WILMER BALCH SPRINGS FORNEY DALLAS 20 45 45 20 35E 35E 35E 30 12 12 80 175 175

21

360

30

GRAND PRAIRIE

ARLINGTON

12

GREAT SOUTHWEST

7

820

20

20

67

DUNCANVILLE

LL

287

360

DESOTO

MANSFIELD

67

54 Q2 2018