Industrial Mid-Year Report_Q2 2019_FINAL

Cushman &Wakefield Dallas/Fort Worth

DFW Airport

The DFW Airport industrial submarket has a central location with excellent access to several major transportation arteries, an abundant supply of labor and multiple area amenities. The area consistently enjoys high tenant demand and investor interest for warehouse/distribution space. The submarket’s inventory stock is composed of both fee simple ownership and DFW Airport ground leased developments. Since 2015, demand has kept up with new supply and the DFW Airport 380

submarket has played a leading role in absorption for the overall DFW market. The submarket’s lack of developable infill sites along with strong leasing Airport to open the southern end for ground leased development in 2017. Developers have aggressively taken advantage of this opportunity, breaking ground on over 8 MSF since, 82% of which has been speculative product. 75 velocity on the northern side of the airport motivated DFW

DFW AIRPORT LEADS THE GREATER DFW INDUSTRIAL MARKET IN MID-YEAR ABSORPTION AND DELIVERIES, WITH 3.3 MSF AND 3.4 MSF RESPECTIVELY. DENTON

35

35E

LITTLE ELM

380

CORINTH

35W

FRISCO

ALLEN OBSERVATIONS & TRENDS

HIGHLAND VILLAGE

75

PLANO

MURPHY • DFW Airport’s mid-year net absorption of 3.3 MSF accounts for 30% of greater DFW market’s mid-year net absorption • Of the 4.5 MSF currently under construction in the submarket, 4.3 MSF (95%) is speculative product HIGHLAND PARK • Consistently high tenant demand in the submarket continues to fuel increased construction activity, the submarket absorbing over 13 MSF in the last three and a half years • Southern DFW Airport ground leased product accounts for 73% (3.3 MSF) of the submarket’s current construction activity DALLAS 30 • The submarket’s spike in development activity is a direct result of DFW Airport officials awarding eleven different developers ground leased sites, encompassing +/- 1,000 acres with over 14.5 MSF of potential development – 8.4 MSF of which has already delivered or broken ground 30 635 12 75 80 75 RICHARDSON

35E

121

FLOWER MOUND

E

114

ADDISON

SOUTHLAKE

CARROLLTON

35E

121

GRAPEVINE

635

FARMERS BRANCH

DFW AIRPORT

114

635

TH LAND LS

360

COLLEYVILLE

114

121

12

BEDFORD

EULESS

35E

183

183

IRVING

820

360

30

30

GRAND PRAIRIE

ARLINGTON

12

35E

FORNEY

45

12

175

46 Q2 2019

20

BALCH SPRINGS

12

20

20

20