Industrial Mid-Year Report_Q2 2019_FINAL

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) • Proximity to residential rooftops has motivated planning and ground breaking of several new speculative developments –– Hunt Southwest’s speculative 202K SF front-park, rear- load at I-75 and Wilmeth Road sold to MDC Investments, Inc. with no pre-leasing –– Dalfen’s McKinney Fulfillment Center, a speculative 115K SF front-park, rear-load at the SEC of Redbud Blvd and Corporate Drive in McKinney is 25% leased –– Sentinel Capital’s Phase I of McKinney National Business Park with two 75K SF rear-load speculative buildings just west of McKinney National Airport on FM 546 is expected to deliver by year-end SELECT NEW DEVELOPMENTS:

75

380

ALLEN/MCKINNEY

ALLEN

75

MURPHY

RICHARDSON

75

30

635

MARKET SUMMARY

ND

30

2011

2012 2013 2014 2015 2016 2017 2018 YTD 2019

LAS

80

9.3

9.3

9.3

9.4

9.4

9.9

10.0

10.5

10.6

Inventory (MSF)

Overall Net Absorption (MSF)

98,155

32,900 194,810 499,072 338,526 470,371 106,799 147,478 (126,325)

FORNEY

45

12

175

16.3% 15.8% 13.8% 8.0% 3.1% 2.3% 3.4% 6.5% 7.7% 20

Overall Vacancy

BALCH SPRINGS

20

305,000

0

66,000 117,261

0

423,927 198,000 455,722 102,954

Completions (MSF) HUTCHINS

175

Under Construction (MSF) 45

66,000 66,000 117,261

0

291,620 108,000 140,000 30,954 147,500

ANCASTER

WILMER

30 Q2 2019