Industrial Mid-Year Report Q2 2020

Cushman &Wakefield Dallas/Fort Worth

Great Southwest

Great Southwest (GSW) is the largest DFW submarket, accounting for 15% of the 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 75 380

Historical and current metrics illustrate the unwavering tenant desire for GSW, as the submarket has absorbed nearly 25 MSF over the last five years comprised of tenants in every size range and across all industries. GSW leads the greater DFW industrial market at mid-year with 2.9 MSF in overall net absorption, compared to 3.5 MSF of net absorption for the full year 2019. GSW’s has 1.5 MSF in new leasing activity year-to-date, of which nearly 1 MSF has not yet been accounted for in the submarket’s overall absorption as those tenants are set to occupy in the second half of this year. 380

DENTON

35

GSW LEADS THE GREATER DFW INDUSTRIAL MARKET AT MID-YEAR WITH 2.9 MSF IN NET ABSORPTION, COMPARED TO 3.5 MSF OF NET ABSORPTION FOR THE FULL YEAR 2019. CORINTH H GHLAND VILLAGE FLOWER MOUND 35E

LITTLE ELM

35W

ALLEN

35E

MURPHY

OKE

114

ADDISON

SOUTHLAKE

RICHARDSON

CARROLLTON

35E

121

75

GRAPEVINE

635

30

FARMERS BRANCH

114

OBSERVATIONS & TRENDS 635

NORTH CHLAND HILLS

360

COLLEYVILLE

635

114

• GSW’s mid-year vacancy of 4.5% is the lowest the submarket has seen in 10+ years, a tie with its 2015 year-end vacancy • Home Depot occupied their new 1.5 MSF BTS facility during Q1, which accounts for 51% of the submarket’s year-to-date net absorption and 79% of its construction completions • GSW’s 1.9 MSF of mid-year completions is made up of the 1.5 MSF build-to-suit for Home Depot and a 402k sf speculative cross-dock by Logistics Property Company, which has had no pre-leasing • About 83% of the submarket’s 3.3 MSF of new inventory delivered during 2019 is leased HUTCHINS BALCH SPRINGS FORNEY HIGHLAND PARK DALLAS 20 45 20 30 35E 35E 30 12 12 12 75 80 175 175

121

12

BEDFORD

EULESS

35E

183

183

OM Y

IRVING

820

360

30

GRAND PRAIRIE

ARLINGTON

12

GREAT SOUTHWEST

820

20

20

67

DUNCANVILLE

287

45

360

DESOTO

LANCASTER

WILMER

MANSFIELD

67

35E

58 Q2 2020