Industrial Mid-Year Report Q2 2020

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. Historically, 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 velocity on the northern side of the airport motivated DFW Airport to open the southern end for ground leased development in 2018. Developers have aggressively taken advantage of this opportunity, breaking ground on nearly 11 MSF since, 86% of which has been speculative product. 75

FOUR OF THE TOP FIVE DEALS SIGNED IN THE SUBMARKET YEAR-TO- DATE HAVE BEEN IN FIRST- GEN SPEC PRODUCT – AMAZON (1 MSF), TEMPUR SEALY (585K SF), AMERIPAC (401K SF), & BRIGHTSTAR (275K SF). DENTON 35E

35

LITTLE ELM

380

CORINTH

35W

FRISCO

ALLEN OBSERVATIONS & TRENDS

HIGHLAND VILLAGE

75

PLANO

MURPHY • DFW Airport led the greater DFW industrial market in leasing activity during the first two quarters with 3.9 MSF of new leasing transactions, 2.7 MSF (72%) of which are expected to occupy/absorb before year-end. • Of the 4.8 MSF currently under construction in the submarket, 4.5 MSF (93%) is speculative product and 100% of the 2.1 MSF of YTD completions is speculative product • Consistently high tenant demand in the submarket continues to fuel increased construction activity, the submarket absorbing over 20 MSF since 2015 • Southern DFW Airport ground leased product accounts for 83% (4 MSF) of the submarket’s current construction activity RICHARDSON HIGHLAND PARK 30 30 635 12 75 75

35E

121

FLOWER MOUND

KE

114

ADDISON

SOUTHLAKE

CARROLLTON

35E

121

GRAPEVINE

635

FARMERS BRANCH

DFW AIRPORT

114

635

RTH HLAND LLS

360

COLLEYVILLE

114

121

12

BEDFORD

EULESS

35E

183

183

M

IRVING

820

DALLAS

80

360

30

30

GRAND PRAIRIE

ARLINGTON

12

35E

FORNEY

45

12

175

44 Q2 2020

20

BALCH SPRINGS

12

20

20

20

HUTCHINS

67

35E

175