Industrial Mid-Year Report Q2 2020
Cushman &Wakefield Dallas/Fort Worth
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
TOTALED MORE THAN THE NEW
SUPPLY DELIVERED IN THE SUBMARKET OVER THE LAST 10 YEARS COMBINED. ALLE
Mesquite has seen an increase in
OBSERVATIONS & TRENDS
• 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.
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