Industrial Mid-Year Report_Q2 2019_FINAL

Cushman &Wakefield Dallas/Fort Worth

Great Southwest

Great Southwest (GSW) is the largest DFW submarket, accounting for 15% of greater DFW industrial inventory. Tenant demand has consistently remained elevated in the area, a result of its central location, proximity to labor, and access to major thoroughfares and DFW International Airport. GSW is home to a wide variety of tenants from a size and operations standpoint. National retailers/ 3PLs and local distributors alike desire the submarket for its prime location and proximity to dense populations of blue-collar labor. PLANO FRISCO 121 75 380

Historical and current metrics illustrate the unwavering tenant desire for GSW, as the submarket has absorbed over 25 MSF over the last five years comprised of tenants in every size range and across all industries. At mid-year, GSW has 2.8 MSF in net absorption, second only to DFW Airport. The submarket delivered just shy of 1 MSF during the first two quarters, 100% of which was build- to-suit or pre-leased product. Both factors resulted in a major drop (130 bps) in the submarket’s vacancy from 2018 year-end, which sits at 4.0% after the first two quarters of 2019. 380

75

DENTON

35

35E

GSW ABSORBED 2.8 MSF AND VACANCY DROPPED BY 130 BASIS POINTS FROM 2018 YEAR-END, SITTING AT 4.0% AFTER THE FIRST TWO QUARTERS OF 2019 CORINTH HIGHLAND VILLAGE FLOWER MOUND

LITTLE ELM

35W

ALLEN

35E

MURPHY

KE

114

ADDISON

SOUTHLAKE

RICHARDSON

CARROLLTON

35E

121

OBSERVATIONS & TRENDS 75

GRAPEVINE

635

30

FARMERS BRANCH

114

635

• Greater DFW market leader in net absorption for last two consecutive years and second in net absorption at mid-year despite delivering less than 1 MSF of new inventory • GSW currently has 4.8 MSF under construction. Of this, 2.7 MSF is spec product and expected to deliver by year-end, 64% of which has been pre-leased • At the end of Q2, GSW’s 2.8 MSF of net absorption accounts for over 25% of greater DFW’s 11 MSF of year-to-date net absorption • GSW’s vacancy fell 30 basis points from Q1 to 4.0% during the second quarter of 2019, which marks the 6th quarter in a row the submarket has experienced tightened vacancy HUTCHINS BALCH SPRINGS FORNEY HIGHLAND PARK DALLAS 20 45 20 30 635 35E 35E 30 12 12 12 75 80 175 175

ORTH HLAND

360

COLLEYVILLE

114

121

HILLS

12

BEDFORD

EULESS

35E

183

183

M

IRVING

820

360

30

GRAND PRAIRIE

ARLINGTON

12

GREAT SOUTHWEST

20

20

20

67

DUNCANVILLE

287

45

360

DESOTO

LANCASTER

WILMER

MANSFIELD

67

35E

68 Q2 2019