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

Cushman &Wakefield Dallas

DFW Overview

Dallas-Fort Worth’s industrial market continues to see enthusiastic interest from tenants, developers, and in- vestors. The thriving DFW economy remains an essential contributor to the industrial market as population and employment growth persist. At mid-year, strong industrial demand throughout the DFW market prevails, as seen by the 11.7 MSF of net absorp- tion and 12.1 MSF of leasing activity year-to-date. Despite the 10.8 MSF of new supply year-to-date, the DFW industrial mar- ket has sustained a tightened overall vacancy of 6.4% over the first two quarters of 2018.

Great Southwest continues to be the hottest submarket in DFW. It account- ed for 6.8 MSF of overall net absorp- tion for the first half of 2018. GSW’s level of market activity was followed by South Dallas, with 2.7 MSF of net absorption. Alliance and DFW Airport were not far behind, each posting 1.2 MSF of net absorption. Looking ahead, we don’t see any near-term slowdown in the Dallas-Fort Worth industrial market. We are very optimistic as DFW is well positioned to continue to see elevated demand and activity through the rest of the year.

DFW INDUSTRIAL SUBMARKET LEADERS AT MID- YEAR ARE GREAT SOUTHWEST, SOUTH DALLAS, ALLIANCE AND DFW AIRPORT WITH NET ABSORPTIONS OF 6.8 MSF, 2.7 MSF, 1.2 MSF AND 1.2 MSF, RESPECTIVELY

MARKET SUMMARY

2010 2011

2012 2013 2014 2015 2016 2017 2018 YTD

614.9 616.9 619.0 626.4 643.5 663.1 684.3 713.5 725.5

Inventory (MSF) Overall Net Absorption (MSF) Overall Vacancy

2.9 12.5 12.1

17.4 15.6 20.2 23.7 25.9 11.7

12.1% 10.4% 8.7% 7.0% 7.1% 6.8% 6.0% 6.5% 6.4%

Completions (MSF)

1.5

2.0 2.1

7.4

17.1

19.6 21.2 29.2 10.8

Under Construction (MSF)

1.4

2.0 4.0 13.9 16.6 20.3 26.6 19.3 22.6

8 Q2 2018