Industrial Mid-Year Report Q2 2020

Industrial Insider Mid-Year Report

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Mid-Year Update

Welcome back to The Industrial Insider. We hope you and your families have been staying healthy and safe. Our team is excited to present the state of the Dallas/Fort Worth industrial market with our Industrial Insider – 2020 Mid- Year Report . In this report, we summarize the performance of the DFW industrial market year-to-date and inform you on what to expect during the second half of the year. The DFW industrial market had a strong start to 2020 despite the arrival of the COVID-19 global pandemic, posting 16.1 MSF of overall net absorption year-to-date. This puts DFW on track to surpass 20 MSF in net absorption for the sixth consecutive year. Mid-year net absorption outpaced

the 14.9 MSF of mid-year construction completions, tightening the overall vacancy rate to 6.1% (lower by 20 basis points from 2019 year-end). Construction activity remains elevated with 23.5 MSF of new supply under construction today (compared to 28.4 MSF under construction at the end of 2019), of which, 3.7 MSF (16%) is build- to-suit or preleased product. Looking ahead to the second half of 2020, we believe the DFW market will continue to see robust supply and demand activity. Current active tenant requirements continue to be strong at approximately 17 MSF. We hope you find this special 2020 Mid-Year Report edition of our Industrial Insider informative.

ERSVILLE

380

ROYSE CITY

allas

34

TERRELL

KAUFMAN

175

Kurt Griffin, SIOR Executive Managing Director +1 972 663 9818 kurt.griffin@cushwake.com

Nathan Orbin, SIOR Executive Managing Director +1 972 663 9819 nathan.orbin@cushwake.com

Ann Jaggars Analyst +1 972 663 9775 ann.jaggars@cushwake.com

Q2 2020

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