Industrial Mid-Year Report_Q2 2019_FINAL

Cushman &Wakefield Dallas/Fort Worth

Garland/Mesquite

Located on the eastern edge of the DFW metroplex, the Garland and Mesquite submarkets are attractive for their proximity to abundant labor and interstate freeways. Mesquite’s tenant base largely consists of 3PLs and manufacturing parts suppliers, while Garland’s has a higher percentage of owner/user tenants. Mesquite’s product type consists of mostly cross dock and front load space that is suitable for modern distribution requirements. The Garland submarket’s product type is more diverse, ranging from 380

multi-tenant office showroom/flex and manufacturing space to warehouse distribution, and is comprised of both older and newer building stock. The recent influx of speculative construction activity in both Garland and Mesquite has resulted in an overall vacancy uptick within each submarket. While Garland has historically led Mesquite in delivery of new supply and net absorption, Mesquite has shifted ahead in both metrics after the first two quarters of 2019 as it experiences the most construction activity in the submarket’s history.

MESQUITE IS SET TO DELIVER OVER 2 MSF IN 2019 – THE HIGHEST AMOUNT OF NEW INVENTORY THE SUBMARKET HAS EVER SEEN WITHIN A CALENDAR YEAR ALLEN 75

RISCO

75

PLANO

MURPHY

OBSERVATIONS & TRENDS

SON

RICHARDSON

• Ashley Furniture moved into their new 877K SF distribution center in Mesquite during the first quarter • Exeter Property Group’s new three-building development at the NEC of S Buckner Blvd and Eastpoint Dr in Mesquite totaling nearly 1 MSF, is expected to deliver in the third quarter of 2019 – Viracon will be occupying Building 3, a 163K SF front-load project • Prologis broke ground on a speculative 237K SF cross dock on the southwest side of the I-30 and US 80 intersection in Mesquite, 126K SF of which has been pre- leased • Dalfen Industrial closed on a +/- 45 acre site at the SWC of SH 352 and Kearney St in Mesquite. The developer has a 406K SF cross dock and 138K SF front load building planned for the site

75

30

GARLAND

635

12

HIGHLAND PARK

30

75

DALLAS

80

MESQUITE

5E

FORNEY

45

12

175

20

BALCH SPRINGS

20

HUTCHINS

35E

175

45

LANCASTER

WILMER

35E

60 Q2 2019