C&W Industrial Insider Year-End Report_Q4-2018

Cushman &Wakefield Dallas/Fort Worth

Allen/McKinney

OBSERVATIONS & TRENDS

• Located on the northeastern most edge of the DFW market surrounded by heavy residential population • Most new supply to this submarket comes from built-to-suit, shallow bay, and high-finish deals (flex space) • Low vacancy and positive overall absorption have motivated planning and ground breaking of several new speculative developments –– Hunt Southwest delivered a speculative 202K SF front-park, rear-load at I-75 and Wilmeth Road –– Dalfen delivered McKinney Fulfillment Center, a speculative 115K SF front-park, rear-load at the SEC of Redbud Blvd and Corporate Drive in McKinney –– Sentinel Capital broke ground on Phase I of McKinney National Business Park with two 75K SF rear-load speculative buildings just west of McKinney National Airport on FM 546 SELECT NEW DEVELOPMENTS:

75

380

ALLEN/MCKINNEY

ALLEN

75

MURPHY

RICHARDSON

75

30

635

MARKET SUMMARY

ND

30

2010 2011

2012 2013 2014 2015 2016 2017 2018

LAS

80

6.4

6.7

6.7

6.8

6.9

6.9

7.3

7.5

8.0

Inventory (MSF)

Overall Net Absorption (MSF)

(224,973) 98,155

32,900 194,810 499,072 338,526 470,371 106,799 147,478

FORNEY

45

12

175

13.8% 16.3% 15.8% 13.8% 8.0% 3.1% 2.3% 3.4% 6.5% 20

Overall Vacancy

BALCH SPRINGS

20

108,000 305,000

0

66,000 117,261

0

423,927 198,000 455,722

Completions (MSF) HUTCHINS

175

Under Construction (MSF) 45

0

66,000 66,000 117,261

0

291,620 108,000 140,000 30,954

ANCASTER

WILMER

20 Q4 2018