Industrial Mid-Year Report_Q2 2019_FINAL

Cushman &Wakefield Dallas/Fort Worth

DFW Overview

The Dallas/Fort Worth industrial market continues to impress us at the mid-year point for 2019 as it remains a leader among major U.S. gateway markets from both a supply and demand perspective. Attention and focus on the DFW industrial market from tenants, developers and investors is at an all-time high. DFW’s spot as #1 in both population growth and job growth, as well as its thriving economy remain essential contributors to the robust industrial market. Strong industrial demand in the DFW market continues at mid-year, as demonstrated by the 11 MSF+ of net absorption and 14.6 MSF of leasing activity year-to date. Despite the delivery of nearly 9.8 MSF of new

supply during the first two quarters, the DFW industrial market’s vacancy tightened to 6.9%, down 20 bps from 2018 year-end. The DFW Airport submarket leads the greater DFW market in both net absorption (3.3 MSF) and new supply (3.4 MSF). The South Dallas submarket leads in year-to-date leasing activity with 4 MSF. Alliance leads in construction activity with 8.1 MSF of product under construction. Looking ahead, we don’t see any near-term slowdown in the Dallas/ Fort Worth industrial market and we anticipate DFW will again reach 20 MSF of net absorption for the fifth straight year.

DFW INDUSTRIAL SUBMARKET DEMAND LEADERS AT MID-

YEAR ARE DFW AIRPORT, GREAT SOUTHWEST AND

ALLIANCE WITH NET ABSORPTIONS OF 3.3 MSF, 2.8 MSF AND 1.5 MSF, RESPECTIVELY.

MARKET SUMMARY

2011

2012 2013 2014 2015 2016 2017 2018 YTD 2019

627.2

629.4

636.8 653.9

673.4

694.5

722.8

750.9

760.7

Inventory (MSF) Overall Net Absorption (MSF) Overall Vacancy

12.5

12.1

17.4

15.6

20.2

23.7

25.9

22.9

11.1

10.4% 8.7% 7.0% 7.1% 6.8% 6.0% 6.5% 7.1% 6.9%

Completions (MSF)

2.0

2.1

7.4

17.1

19.6

21.2

29.2

26.9

9.8

Under Construction (MSF)

2.0

4.0

13.9

16.6

20.3

26.6

19.3

21.7

30.1

8 Q2 2019