C&W Industrial Insider Year-End Report_Q4-2018

Cushman &Wakefield Dallas/Fort Worth

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

The submarket’s lack of developable infill sites along with strong leasing velocity on the northern side of the airport motivated DFW Airport to open the southern end for ground leased development. Developers have aggressively taken advantage of this opportunity, breaking ground on over 5 MSF in 2018, 70% of which is speculative product. The submarket has also seen increased activity on the build-to-suit front with both Mars, Inc. and PPG selecting the submarket for their new facilities. 75

DEVELOPERS BROKE GROUND ON 5 MSF ON DFW AIRPORT GROUND LEASED LAND IN 2018, 70% OF WHICH IS SPECULATIVE PRODUCT, OF WHICH ONE-THIRD IS ALREADY LEASED DENTON 35E

35

LITTLE ELM

380

CORINTH

35W

FRISCO

ALLEN

HIGHLAND VILLAGE

75

PLANO OBSERVATIONS & TRENDS

35E

121

FLOWER MOUND

MURPHY • Speculative deliveries on southern DFW Airport ground leased sites accounted for nearly 75% of new supply in the submarket for 2018 • Since DFW Airport officials opened up additional land for ground leased development at the beginning of 2018, eleven different developers have been awarded sites for a total of over 13 MSF planned on about 1,000 acres • Consistently high tenant demand in the submarket continues to make sense of the increased construction activity, absorbing over 10 MSF in the last three years • Nearly 2.4 MSF (62%) of DFW Airport’s deliveries for the year 2018 occurred in Q4, justifying the slight lag in year- end net absorption numbers from year-end completions RICHARDSON HIGHLAND PARK DALLAS 30 30 635 12 75 80 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

360

30

30

GRAND PRAIRIE

ARLINGTON

12

35E

FORNEY

45

12

175

34 Q4 2018

20

BALCH SPRINGS

12

20

20

20