Industrial Mid-Year Report Q2 2020

35E

LITTLE ELM

CORINTH

35W

Cushman &Wakefield Dallas/Fort Worth

FRISCO

287

ALLEN

HIGHLAND VILLAGE

75

North Fort Worth 35E

PLANO

121

FLOWER MOUND

114

MURPHY

ROANOKE

OBSERVATIONS & TRENDS AD ISON

114

SOUTHLAKE

RICHARDSON

CARROLLTON

35W

35E

• Infill submarket with few remaining large land parcels available for development • Tenant base has a high percentage of rail users and light manufacturing • North Fort Worth’s steady increase in vacancy over the last several years is a direct result of the 6.6 msf of new inventory delivered since 2017, 85% (5.6 msf) of which has been speculative product • Looking ahead, expect North Fort Worth’s vacancy to tighten as speculative product gets leased and the lack of developable sites slows new inventory EULESS IRVING FARMERS BRANCH GRAND PRAIRIE HIGHLAND PARK DALLAS 635 635 635 35E 35E 30 12 12 114 114 121 121 360 360 183 12 75 75

GRAPEVINE

287

KELLER

NORTH RICHLAND HILLS

COLLEYVILLE

NORTH FORT WORTH

BEDFORD

SAGINAW

30

199

183

HALTOM CITY

820

820

35W

121

30

WHITE SETTLEMENT

ARLINGTON

FORT WORTH

30

45

30

12

820

175

287

LANCASTER DESOTO SELECT MARKET ACTIVITY & NEW DEVELOPMENTS: – A&R Logistics leased and occupied 299k sf in Building 1 of Morgan Stanley’s Railhead Industrial Park, a 299k sf front-load, rear-rail building located at 400 E Industrial Boulevard in Fort Worth. – Bell leased 138k sf in Building 3 of Fossil Creek Crossing, a 138k sf rear-load building located at 5401 Sandshell Drive. – Crow Holdings Industrial delivered Mark IV Commerce Park, a three-building speculative project at the SWC of Mark IV Parkway and Loop 820. The project is about 10% leased and consists of a 580k sf cross- dock and two front-loads (240k & 205k sf). – Creation Equity and LGE Design Build broke ground on The 820 Exchange, a four-building speculative project located on the south side of Loop 820 at Anderson Boulevard. The project is set to deliver early 2021 and consists of a 426k sf cross-dock and three rear-load buildings (228k, 158k, & 138k sf). FOREST HILL DUNCANVILLE MANSFIELD 20 20 20 45 820 35W 35E 35E 20 12 360 67 67 287 HUTCHINS

BALC SPRIN

20

BENBROOK

377

WILMER

MARKET SUMMARY

2012 2013 2014 2015 2016 2017 2018 2019 YTD 2020

36.0

36.0

36.6

37.1

40.6

42.6

44.3

46.1

47.1

Inventory (MSF)

Overall Net Absorption (MSF)

328,639 373,041 309,287 (837,861) 4.5

2.3

725,536

1.2

720,868

4.9% 3.8% 4.4% 8.1% 4.7% 4.0% 5.1% 6.2% 7.1%

Overall Vacancy

188,000

0

541,216 559,367

3.4

2.1

1.7

1.8

1.1

Completions (MSF)

Under Construction (MSF)

0

0

0

3.3

1.4

1.1

1.1

1.0

1.0

74 Q2 2020