Industrial Mid-Year Report Q2 2020

Cushman &Wakefield Dallas/Fort Worth

Mesquite

Located on the eastern edge of the DFW metroplex, the Mesquite submarket is attractive for its proximity to abundant labor, interstate freeways and the urban core of Dallas. Mesquite’s tenant base largely consists of 3PLs and manufacturing parts suppliers. Mesquite’s product type consists of mostly cross dock and front load space that is suitable for modern distribution requirements. 380

speculative construction activity over the last few years. Speculative product accounted for 60% of new supply for the submarket since 2018. Mesquite’s 2.1 MSF of new supply delivered in 2019 totaled more than the new supply delivered in the submarket over the last 10 years combined (1.3 MSF). The elevated vacancy in Mesquite compared to the overall DFW industrial market results from the recent delivery of big box speculative product in a submarket with only 20.6 MSF of inventory.

MESQUITE’S 2.1 MSF OF NEW SUPPLY DELIVERED IN 2019

75

TOTALED MORE THAN THE NEW

SUPPLY DELIVERED IN THE SUBMARKET OVER THE LAST 10 YEARS COMBINED. ALLE

FRISCO

Mesquite has seen an increase in

75

PLANO

MURPHY

OBSERVATIONS & TRENDS

ISON

RICHARDSON

• Of the 1.9 MSF of new supply under construction in Mesquite, 90% (1.7 MSF) is speculative product with no pre-leasing to date • Major year-to-date move-ins in Mesquite include Amazon (420K SF), Distribution Management (191K SF) and HemaSource (100K SF) • Urban Logistics Realty is under construction on Urban District 30, a speculative five-building park totaling nearly 1 MSF, located at I-30 and Republic Parkway. • Dalfen Industrial is under construction on East Dallas Logistics Center, a speculative two-building park with a 407K SF cross-dock and a 138K SF front-load, located at 1440-1460 E Kearney Street.

75

30

GARLAND

635

12

HIGHLAND PARK

30

75

DALLAS

80

MESQUITE

35E

FORNEY

45

12

175

20

BALCH SPRINGS

2

20

HUTCHINS

35E

175

45

LANCASTER

WILMER

35E

64 Q2 2020

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