Industrial Mid-Year Report Q2 2020

Cushman &Wakefield Dallas/Fort Worth

Alliance

The Alliance submarket is situated along I-35W on the northwest edge of DFW. The submarket benefits from 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 about 15 other developers that have either begun developing or acquired 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, DENTON 35

to one with a more diverse investment landscape. It has also brought efficiency to the leasing market as tenants enjoy options to lease product controlled by a variety of owners. Alliance delivered 5.2 MSF during the first two quarters of 2020, compared to 3.6 MSF of completions during the full year of 2019. Alliance currently accounts for 32% of the greater DFW market’s new development pipeline with 7.5 MSF of inventory under construction. The activity from a supply standpoint is being met by solid demand with 1.4 MSF of YTD net absorption and 2.9 MSF of new leasing activity, compared to 3.5 MSF of new leasing activity for the full year of 2019. 380

ALLIANCE DELIVERED 5.2 MSF DURING THE FIRST TWO QUARTERS OF 2020, COMPARED TO 3.6 MSF OF COMPLETIONS FOR THE FULL YEAR OF 2019.

75

380

35E

LITTLE ELM

CORINTH

35W

FRISCO

OBSERVATIONS & TRENDS

ALLEN

HIGHLAND VILLAGE

75

• The Alliance submarket leads the greater DFW industrial market in construction activity with 7.5 MSF of new product under construction, 94% (7 MSF) of which is speculative • The submarket’s 2.9 MSF of mid-year leasing activity is second only to DFW Airport, with over 65% of new leases signed occurring in first-gen spec product • The Alliance submarket delivered 5.2 MSF of new supply during the first two quarters, 100% of which is speculative • Alliance construction completions are expected to reach, if not surpass, nearly 10 MSF by year-end, more new inventory for the submarket than the last three years combined RICHARDSON PLANO IRVING FARMERS BRANCH HIGHLAND PARK ADDISON CARROLLTON 635 635 635 35E 35E 35E 12 114 114 183 121 12 75 75

FLOWER MOUND

114

MU

ROANOKE

114

SOUTHLAKE

35W

121

GRAPEVINE

287

ALLIANCE

KELLER

NORTH RICHLAND HILLS

360

COLLEYVILLE

121

BEDFORD

SAGINAW

EULESS

30

183

HALTOM CITY

820

820

35W

DALLAS

34 Q2 2020

121

360

30

30

WHITE TTLEMENT

GRAND PRAIRIE

ARLINGTON