C&W Industrial Insider Year-End Report_Q4-2018

Cushman &Wakefield Dallas/Fort Worth

Great Southwest

Great Southwest (GSW) is the largest DFW submarket, accounting for 15% of greater DFW industrial inventory. 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 and proximity to dense populations of blue-collar labor. PLANO FRISCO 121 75 380

Historical and current metrics illustrate the unwavering tenant desire for GSW, as the submarket has absorbed 23.5 MSF over the last five years by tenants varying in every size range and across all industries. GSW upheld its spot as the leading submarket in net absorption for the second straight year with 9.7 MSF for 2018, exceeding South Dallas, the submarket with the second highest net absorption for the year by 3.8 MSF. Despite the submarket’s influx of 12.8 MSF of new supply over the last two years, high tenant demand has significantly lowered GSW’s overall vacancy, which is down 4% year-over- year. MURPHY 380

75

DENTON

35

35E

GSW UPHELD ITS SPOT AS THE LEADING SUBMARKET IN

LITTLE ELM

CORINTH

35W

ALLEN

NET ABSORPTION FOR THE SECOND STRAIGHT YEAR WITH 9.7 MSF FOR 2018 FLOWER MOUND

HIGHLAND VILLAGE

35E

KE

114

ADDISON

SOUTHLAKE

RICHARDSON

CARROLLTON

35E

121

OBSERVATIONS & TRENDS 75

GRAPEVINE

635

30

FARMERS BRANCH

114

635

• DFW’s hottest industrial submarket with not only highest tenant demand but also highest demand among developers and investors • For the second straight year, GSW’s net absorption led the other DFW submarkets, accounting for 43% of DFW’s 22.8 MSF in net absorption for 2018 • GSW’s net absorption to completions ratio shifted dramatically in 2018 – while net absorption trailed completions by 5.7 MSF for 2016 and 2017, net absorption outpaced completions by 4.7 MSF in 2018 • General Motors served as a major contributor to the submarket’s net absorption for 2018 with a 1 MSF assembly plant expansion and Northpoint Development’s delivery of Arlington Logistics Center, a 1.25 MSF build-to-suit project accommodating suppliers to the General Motors plant • Northpoint Development has begun construction on a 2.3 MSF, two-building distribution hub for Home Depot at Dallas Global Industrial Center, located south of I-30 on West Jefferson Blvd LANCASTER HUTCHINS WILMER BALCH SPRINGS FORNEY HIGHLAND PARK DALLAS 20 45 45 20 30 635 35E 35E 35E 30 12 12 12 75 80 175 175

ORTH HLAND

360

COLLEYVILLE

114

121

HILLS

12

BEDFORD

EULESS

35E

183

183

M

IRVING

820

360

30

GRAND PRAIRIE

ARLINGTON

12

GREAT SOUTHWEST

20

20

20

67

DUNCANVILLE

287

360

DESOTO

MANSFIELD

67

54 Q4 2018