C&W Industrial Insider Year-End Report_Q4-2018

Cushman &Wakefield Dallas/Fort Worth

DFW Overview

The story remains the same for Dallas- Fort Worth’s industrial market at the end of 2018. The enthusiastic interest and focus DFW has seen from tenants, developers and investors continued, even heightening throughout 2018. The thriving DFW economy along with persisting population and employment growth remain essential contributors to the industrial market. At year-end, strong industrial demand throughout the DFW market prevails, as seen by the 22.9 MSF of net absorption for the year and 23.4 MSF of active tenant requirements.

industrial market has sustained an overall vacancy (7.1%) beneath its 15- year historical average (9.2%). Great Southwest continues to be the hottest submarket in DFW. It accounted for 43% of the overall market’s net absorption with 9.7 MSF. GSW’s level of market activity was followed by South Dallas, with its record-breaking 6.4 MSF of net absorption. Looking ahead, we don’t see any signs of a slowdown in the Dallas-Fort Worth industrial market. Our team remains very optimistic as DFW is well positioned to see elevated demand and activity throughout 2019.

DFW INDUSTRIAL SUBMARKET LEADERS AT YEAR- END ARE GREAT SOUTHWEST, SOUTH DALLAS, DFW AIRPORT & NORTH FW/ALLIANCE WITH NET ABSORPTIONS OF 9.7 MSF, 6.4 MSF, 2.8 MSF AND 2.3 MSF, RESPECTIVELY

Despite the delivery of nearly 27 MSF of new supply in 2018, the DFW

MARKET SUMMARY

2010 2011

2012 2013 2014 2015 2016 2017 2018

614.9 616.9 619.0 626.4 643.5 663.1 684.3 713.5 741.3

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

2.9 12.5 12.1

17.4 15.6 20.2 23.7 25.9 22.9

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

Completions (MSF)

1.5

2.0 2.1

7.4

17.1

19.6 21.2 29.2 26.9

Under Construction (MSF)

1.4

2.0 4.0 13.9 16.6 20.3 26.6 19.3 21.7

8 Q4 2018