Industrial Mid-Year Report_Q2 2019_FINAL

Cushman &Wakefield Dallas/Fort Worth

Alliance/North Fort Worth

The North Fort Worth and Alliance submarkets are situated along I-35W on the northwest edge of DFW. Both submarkets benefit from proximity to Alliance’s Global Logistics Hub, which includes the BNSF Railway Intermodal Terminal, Alliance Airport, and UPS and FedEx hubs. While Alliance has traditionally been a finite submarket mostly controlled by Hillwood, other developers and institutional investors have entered the area. There are currently at least ten other developers that have acquired or are actively pursuing developable land sites in Alliance. This marks the evolution of the submarket from one that has traditionally been tightly controlled with high barriers of entry, to one with a more diverse investment CORINTH DENTON 35E 35 35W

landscape. It will also bring efficiency to the leasing market as tenants will enjoy options to lease product controlled by a variety of owners. North Fort Worth is an infill submarket with few remaining large land parcels available for development. The submarket’s tenant base has a high percentage of rail users and light manufacturing. Alliance and North Fort Worth combined have delivered 1.4 MSF year- to-date and currently account for nearly 35% of the greater DFW market’s new development pipeline with 10.4 MSF of inventory under construction. The activity from a supply standpoint is being met by high demand with roughly 2.9 MSF of leasing activity during the first two quarters of 2019. FRISCO 380

LEASING ACTIVITY IN ALLIANCE/ NORTH FT. WORTH IS APPROXIMATELY 2.9 MSF AFTER THE FIRST TWO QUARTERS. THIS LEVEL OF DEMAND IS FUELING THE RECORD 10.4 MSF OF SUPPLY UNDER CONSTRUCTION 380

7

LITTLE ELM

287

ALL

HIGHLAND VILLAGE

75

OBSERVATIONS & TRENDS

PLANO

35E

• The Alliance and North Fort Worth submarkets lead the greater DFW industrial market in construction activity with 10.4 MSF of new product under construction at the end of Q2, 8.6 MSF (83%) of which is speculative • Elizabeth Creek Gateway, a two-building 1.2 MSF speculative project developed by DHL and sold in a Forward Commitment to State Farm, is 100% leased less than 6 months after delivery • At mid-year, the Alliance submarket has speculative projects by 7 different developers either under construction or close to breaking ground – the most the submarket has ever experienced • During the first two quarters, the submarkets combined posted over 2.9 MSF of leasing activity, 100% of which was for first-generation product IRVING FARMERS BRANCH HIGHLAND PARK DALLAS ADDISON CARROLLTON 635 635 35E 35E 30 12 114 114 121 360 183 121 12 75 75

FLOWER MOUND

114

ROANOKE

114

SOUTHLAKE

RICHARDSON

35W

GRAPEVINE

287

ALLIANCE

KELLER

NORTH RICHLAND HILLS

360

COLLEYVILLE

635

121

NORTH FORT WORTH

BEDFORD

SAGINAW

EULESS

199

183

HALTOM CITY

820

820

35W

121

30

WHITE SETTLEMENT

34 Q2 2019

GRAND PRAIRIE

ARLINGTON

12

FORT WORTH

35E

30