C&W Industrial Insider Year-End Report_Q4-2018

Cushman &Wakefield Dallas/Fort Worth

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. Over the last five years, Garland has consistently led Mesquite in almost every statistical metric. The Garland submarket has accounted for nearly 80% of the 5 MSF of net absorption for submarkets combined over the last five years. Despite Mesquite’s low absorption numbers (a result of a small inventory and several major tenant move-outs), lease-up of new inventory delivered in the submarket has achieved 100% since 2014.

MESQUITE IS SET TO DELIVER OVER 1.8 MSF IN 2019 – THE MOST NEW INVENTORY THE SUBMARKET HAS EVER SEEN WITHIN A CALENDAR YEAR 75

RISCO

ALLEN

75

PLANO

MURPHY

OBSERVATIONS & TRENDS

SON

RICHARDSON

• Despite having zero new supply deliver in both Garland and Mesquite for the first half of the year, the combined submarkets delivered 1.3 MSF of speculative product in the last two quarters, 74% of which was pre-leased to Elements International and Quest Window Systems • Exeter Property Group’s new three-building development at the NEC of S Buckner Blvd and Eastpoint Dr in Mesquite, totaling nearly 1 MSF, is expected to deliver in the first quarter of 2019 – Viracon will be occupying Building 3, a 144,900 SF front-load • The 877K SF Ashley Furniture distribution center currently under construction in Mesquite is expected to deliver during the first half of 2019 • Hillwood landed a 1.2 MSF BTS with Goodyear in Forney and has another large BTS planned in the area for 2019

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 Q4 2018