Dallas/Fort Worth 2nd Quarter 2015 Industrial · 2013 q2 2013 q3 2013 q4 2014 q1 2014 q2 2014 q3...

2015 Q2 Market Trends © 2015 by Xceligent, Inc. All Rights Reserved

Industrial

2nd Quarter 2015

In partnership with

Dallas/Fort Worth

Market Report

2 2015 Q2 Market Trends © 2015 by Xceligent, Inc. All Rights Reserved

Table of Contents/Methodology of Tracked Set

Table of Contents/Methodology of Tracked Set 2

Industrial Market Map 3

Dallas-Fort Worth Industrial Overview 4-6

2nd Quarter 2015 - By Market 7

Historical Vacancy & Asking Rates 8

Current Vacancy Rates & Asking Rates 9

New Construction 10-11

Leasing Activity 12

Advisory Board Members 13

DFW Xceligent Team 14

The Dallas-Fort Worth tracked set consists of an inventory of buildings considered to be competitive within the brokerage community. All buildings within the competitive tracked set have been reviewed and verified by members of the Advisory Boards for each market area.

Tracked Inventory (Industrial)

The total square feet of all single and multi-tenant buildings greater than 20,000 sf, including owner occupied facilities. Large manufacturing facilities, data centers, airplane hangar space, truck terminals/courts and obsolete/remediation properties are excluded.

Total Available SF All of the available leasable space within a building, whether it is occupied or vacant, for direct lease or sublease space. Space can be available but not vacant, for example, if the landlord, or his agent, is marketing space that will be coming available at a future date because a tenant is planning to move.

Total Vacant SF The total of the vacant square footage in a building that is being marketed by an agent representing the landlord.

Net Absorption

The net change in occupied square feet from quarter to quarter, expressed in square feet.

Note This report reflects Direct Vacancy and Absorption, Sublease space is excluded

Xceligent is a leading provider of verified commercial real estate information which assists real estate

professionals, appraisers, owners, investors and developers that make strategic decisions to lease, sell,

buy and develop commercial properties.


Industrial Market Map


Dallas-Fort Worth Industrial Overview

Overview

6%

8%

10%

12%

14%

16%

2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2

Historical Vacancy Rates by Specific Use

Bulk Warehouse Flex/R&D Warehouse - Distribution

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

(1,000,000)

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2

Warehouse Historical Vacancy Rate & Net Absorption

Throughout the first half of 2015 the Dallas-Fort Worth industrial market has absorbed 11 million square feet of industrial space bringing the overall vacancy rate down to 8.2%.

Warehouse vacancy dropped to 7.3% while Flex space increased to nearly 13%.

The South Dallas and North Stemmons markets showed the highest gains during the second quarter.

South Dallas continues to lead the market in new construction, boasting nearly 5 million of the market’s total 12.9 million square feet of new construction.

Overall the Dallas-Fort Worth industrial market continues to be one of the healthiest industrial markets in the nation.


Dallas-Fort Worth Industrial Overview

11.50%

12.00%

12.50%

13.00%

13.50%

14.00%

14.50%

15.00%

15.50%

(400,000)

(200,000)

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2

Flex/R&D Historical Vacancy Rate & Net Absorption

-1,000,000

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2

Historical Net Absorption by Specific Use

Bulk Warehouse Flex/R&D Warehouse - Distribution


Dallas-Fort Worth Overview

Largest Changes in Occupancy

Property Name SF Occupied

or Vacated Tenant Name Market Specific Use

Commerce 45 Bldg 1

1,005,398 Georgia Pacific South Dallas Bulk Warehouse

Commerce 45 Bldg 2

503,642 Georgia Pacific South Dallas Bulk Warehouse

Penn Distribution Center 491,542 RR Donnelley South Dallas Warehouse - Distribution

Alliance Gateway 53 450,000 Bridgestone Tire North Fort Worth

Bulk Warehouse

First Pinnacle Park Bldg A - First Industrial

376,601 Dr Pepper Lonestar Turnpike

Bulk Warehouse

Commerce 20 Bldg 1

325,403 Genco South Dallas Warehouse - Distribution

Pinnacle Industrial Center Bldg E

(178,200) Ozburn Hessey Logistics

Lonestar Turnpike

Bulk Warehouse

Belt Line Trade Center (195,000) UPS Supply Chain Solutions

DFW Airport Warehouse - Distribution

Prologis GSW 36 (200,825) Android Industries Great Southwest

Warehouse - Distribution

Mesquite Distribution Center 1 (442,035) Georgia Pacific East Dallas Bulk Warehouse

Turnpike 29 (594,000) Dr Pepper Lonestar Turnpike

Bulk Warehouse

4040 Forest Ln (678,354) Navistar Manufacturing

East Dallas Warehouse - Distribution


2nd Quarter 2015 - By Market

# of Bldgs Inventory (SF) Total Available (SF) Available Sublease

(SF) Vacancy Rate

(%) Net Absorption

(SF)

DFW Airport 430 57,431,165 9,945,826 1,176,751 10.1% (88,672)

Bulk Warehouse 76 25,100,235 3,508,406 657,553 7.0% 60,638

Flex/R&D 163 10,561,584 1,634,277 100,573 10.1% (123,835)

Warehouse - Distribution 191 21,769,346 4,803,143 418,625 13.7% (25,475)

Great Southwest 1,312 114,995,128 13,516,095 542,387 8.5% 424,759

Bulk Warehouse 74 26,175,892 1,970,870 200,716 2.8% 453,648

Flex/R&D 183 8,245,628 1,030,281 2,346 11.0% 114,127

Warehouse - Distribution 1,055 80,573,608 10,514,944 339,325 10.1% (143,016)

South Stemmons 1,232 64,384,230 4,727,540 273,445 4.3% 425,246

Bulk Warehouse 30 7,210,714 476,290 105,974 1.5% 106,994

Flex/R&D 197 9,131,184 944,823 1,100 8.9% 89,411

Warehouse - Distribution 1,005 48,042,332 3,306,427 166,371 3.9% 228,841

North Stemmons 796 60,250,824 5,419,778 191,333 6.1% 589,183

Bulk Warehouse 44 11,273,073 443,400 0 3.7% 56,889

Flex/R&D 289 14,787,516 2,303,567 76,778 13.2% (74,708)

Warehouse - Distribution 463 34,190,235 2,672,811 114,555 3.9% 607,002

Northeast Dallas 563 40,071,545 3,899,246 289,706 8.2% 118,640

Bulk Warehouse 14 3,888,973 289,646 0 7.4% 0

Flex/R&D 352 21,790,338 2,640,280 285,706 9.9% 36,933

Warehouse - Distribution 197 14,392,234 969,320 4,000 5.9% 81,707

Denton/Lewisville 267 29,144,567 3,462,763 63,809 9.9% 4,935

Bulk Warehouse 33 13,192,299 1,585,468 56,000 11.6% 5,666

Flex/R&D 68 4,244,268 1,142,107 7,809 20.9% (10,649)

Warehouse - Distribution 166 11,708,000 735,188 0 3.9% 9,918

North Fort Worth 439 61,703,519 9,301,267 455,672 11.0% 546,872

Bulk Warehouse 85 30,880,126 3,481,216 419,546 8.0% 824,538

Warehouse - Distribution 305 25,464,721 3,316,157 0 6.9% (43,374)

East Dallas 824 69,109,549 9,417,008 998,828 9.7% (1,033,863)

Bulk Warehouse 33 11,060,907 2,637,181 923,411 18.2% (490,819)

Flex/R&D 156 7,343,918 1,165,352 64,451 10.6% 33,838

Warehouse - Distribution 635 50,704,724 5,614,475 10,966 7.7% (576,882)

Lonestar Turnpike 183 20,093,251 2,008,892 230,339 8.3% 274,703

Bulk Warehouse 29 10,795,584 1,462,125 105,624 12.6% 254,884

Flex/R&D 16 938,694 66,026 0 4.4% (20,576)


South Dallas 410 53,969,375 5,573,139 11,025 9.1% 2,880,710

Bulk Warehouse 65 23,721,922 3,498,419 0 13.9% 1,813,792

Flex/R&D 51 2,442,169 245,323 0 3.6% (44,589)

Warehouse - Distribution 294 27,805,284 1,829,397 11,025 5.4% 1,111,507

South Fort Worth 378 24,656,568 2,172,407 0 4.1% 73,833

Bulk Warehouse 4 1,204,226 0 0 0.0% 0

Flex/R&D 53 2,302,742 178,390 0 7.7% 44,782

Warehouse - Distribution 321 21,149,600 1,994,017 0 3.9% 29,051

West Fort Worth 84 4,293,799 153,862 7,000 1.5% 9,000

Bulk Warehouse 0 0 0 0 0.0% 0

Flex/R&D 3 190,099 0 0 0.0% 0


Grand Total 6,918 600,103,520 69,597,823 4,240,295 8.2% 4,225,346


Historical Vacancy Rates & Asking Rates

Vacancy Rate (%) Asking Direct Lease Rate (NNN)

2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2

DFW Airport 9.5% 9.4% 8.7% 9.8% 10.1% $7.82 $7.68 $8.28 $8.55 $8.08

Great Southwest 9.6% 9.7% 9.7% 8.9% 8.5% $4.90 $4.87 $5.03 $5.07 $5.05

South Stemmons 6.4% 5.7% 5.2% 5.0% 4.3% $5.16 $5.59 $5.55 $5.71 $5.82

North Stemmons 8.2% 7.9% 7.3% 7.2% 6.1% $5.61 $5.91 $5.94 $5.98 $5.98

Northeast Dallas 12.0% 11.1% 10.0% 8.6% 8.2% $7.28 $7.42 $7.25 $7.21 $7.08

Denton/Lewisville 12.5% 12.8% 12.7% 9.9% 9.9% $9.76 $9.77 $9.58 $9.47 $9.34

North Fort Worth 12.9% 11.6% 11.4% 11.8% 11.0% $4.51 $4.84 $4.62 $4.75 $5.51

East Dallas 8.3% 7.8% 7.8% 7.7% 9.7% $4.39 $4.40 $4.25 $4.52 $4.59

Lonestar Turnpike 12.5% 12.6% 11.9% 9.6% 8.3% $3.39 $3.42 $3.38 $3.55 $3.63

South Dallas 16.8% 18.0% 14.9% 13.7% 9.1% $3.24 $3.32 $4.14 $4.71 $4.04

South Fort Worth 6.3% 6.5% 5.9% 4.4% 4.1% $4.26 $3.93 $3.65 $3.71 $3.66

West Fort Worth 2.0% 1.9% 2.0% 1.7% 1.5% $5.75 $4.00 $5.00 $5.00 $5.00

Grand Total 10.1% 9.9% 9.3% 8.8% 8.2% $5.67 $5.78 $5.87 $6.01 $5.99


Current Vacancy Rates & Asking Rates

10.1%

8.5%

4.3%

6.1%

8.2%

9.9%

11.0%

9.7%

8.3%

9.1%

4.1%

1.5%

Vacancy Rate by Market

$8.08

$5.05

$5.82 $5.98

$7.08

$9.34

$5.51

$4.59

$3.63 $4.04

$3.66

$5.00

Average Asking Rates by Market


New Construction

Notable Projects Underway

Property Name Building Size Market

Logistics Crossing 2 768,587 Great Southwest

Ulta, Inc 670,000 South Dallas

Northport 35 Business Center Bldg A 658,782 North Fort Worth

Mountain Creek Bldg 1 - Crow Holdings 630,000 South Dallas

Mountain Creek Bldg 2 -Crow Holdings 605,000 South Dallas

Wildlife Commerce Park Bldg 3 540,000 Great Southwest

NW of IH 20 and JJ Lemmon Rd 500,000 South Dallas

Commerce 20 Bldg 2 - Hillwood 488,565 South Dallas

Jupiter Trade Center 472,244 East Dallas

Eagle Park 20/35 - Ridgeline Property Trust 453,600 South Dallas

Stoneridge Business Park Bldg 11 399,971 South Dallas

DCT Waters Ridge - DCT Industrial 344,687 Denton/Lewisville

Majestic Airport Center DFW Bldg 6 329,060 Denton/Lewisville

Valwood Corporate Center Bldg 3 310,960 North Stemmons

Southfield Park 35 Bldg 3 - Seefried Industrial 297,265 South Dallas


Mercer Business Park Bldg 2 260,000 North Stemmons

Turnpike West 259,672 Lonestar Turnpike

Planned PointSouth Logistics & Commerce Center III 249,060 South Dallas

Railhead Industrial Park Bldg 3 240,200 North Fort Worth

First Pinnacle Park Bldg B - First Industrial 221,844 Lonestar Turnpike

DFW Trade Center VIII 208,249 DFW Airport

Northport 35 Business Center Bldg B 202,522 North Fort Worth

NW of IH 20 and JJ Lemmon Rd 201,600 South Dallas

Heritage Business Park Bldg IX 201,552 DFW Airport

4800 Mountain Creek Pkwy 195,000 South Dallas

DFW Airport North Distribution Center II 185,000 Denton/Lewisville

Prologis Park 35 Bldg 2 183,040 East Dallas

3839 Distribution Dr 169,105 East Dallas

DFW Airport North Distribution Center III 164,580 Denton/Lewisville

DFW East Logistics Center Bldg C 161,782 DFW Airport


New Construction

Notable Projects Underway [cont.]

Property Name Building Size Market

Crawford Electric Supply 160,000 DFW Airport



First Arlington Commerce Center @ I-20 153,000 Great Southwest

Stoneridge Business Park Bldg 12 149,956 South Dallas

Parkview Commerce Center 3 - Eastgroup Properties 140,704 Denton/Lewisville

Stoneridge Business Park 13 139,971 South Dallas

Frisco Commerce Center Bldg D 137,020 Northeast Dallas

Heritage Business ParkBldg VIII 134,160 DFW Airport

Allen Place Bldg 1 - Sentinel Capital 121,836 Northeast Dallas

Prologis Park 35 Bldg 1 - 109,920 East Dallas

Railhead Industrial Park Bldg 7 99,000 North Fort Worth

Three Valwood 93,000 North Stemmons

Parkview Commerce Center 1 - EastGroup Properties 84,760 Denton/Lewisville

Northport 35 Business Center Bldg C 83,731 North Fort Worth

1223 Crestside Dr 80,313 DFW Airport

DFW East Logistics Center Bldg B 54,137 DFW Airport

6220 Communications Pkwy - Haggard Property Group 52,000 Northeast Dallas

Parkview Commerce Center 2 - EastGroup Properties 50,590 Denton/Lewisville

Total SF and Building Count 12,990,306 50

1,299,3811,000,193

1,461,587

481,516

1,284,235 1,238,241

4,979,988

934,309310,856

New Construction by Market


Industrial Leasing Activity

This map illustrates the density of industrial leasing activity across the metro. This is reflective of the number of leases signed not the aggregate of the total square footage. (YTD 2015)


DFW Industrial Advisory Board Members

Dallas Fort Worth Research

CBRE Steve Berger CBRE Bob Scully CBRE CBRE Research

Steve Trese Bradford Nick Talley Jones Lang LaSalle Steve Triolet

John Hendricks Michael Spain Walter Bialas

David Easterling Jim Ferris Colliers Mike Otillio

Colliers Allen Gump Cassidy Turley Blake Anderson Swearingen Greg Bennett

Matt Thompson E Smith Realty Partners Jim Hazard Henry S Miller Doug Prude

Duke Realty Randy Wood Hillwood Tony Crème PM Realty Group Ariel Guerrero

Holt Lunsford Josh Barnes Holt Lunsford Canon Shoults Cushman & Wakefield Ryan Tharp

Lee & Associates George Tanghongs Matt Carthey

Nathan Denton Donnie Rohde

Brett Lewis Lee & Associates Mark Graybill

Lincoln Property Michael Peinado Jones Lang LaSalle Jamie Galati

Gil Stroube George Curry

Mark V Mike McCartan NAI Roberty Lynn Michael Stanzel

NAI Robert Lynn Rick Medinis Patrick Embry

David Peterson Prologis Mitch Pruitt

Steven Cooper Stream Cannon Green

Craig Jones Seth Koschack

Robert Blankenship Transwestern Jeff Givens

John Leinbaugh John Brewer

Prologis Mitch Pruitt

Cody Riles

Stream Blake Kendrick

Hanes Chatham

Jason Moser

Ryan Boozer

Transwestern John Fulton

Brett Owens

Maverick Brad Lipton

Mercer Jeremy Mercer

Avison Young Matt Middendorf

Jim Lake Company Conner Ivy

Hudson Peters Michelle Hudson

Younger Partners Carter Crow

JT Samford

Whitehall Roy Greenberg

Jessica Reinhardt


Xceligent DFW Team

This information has been obtained from sources believed reliable. While we do not doubt its accuracy, we

have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to

independently confirm its accuracy. For more information, please contact :

Brad Hauser Regional Director of Analytics (281) 782-3944 [email protected]

Chris Summers Regional Director, Texas (214) 735-2387 [email protected]

Kyle Brookmole Director of Client Services (214) 280-7067 [email protected]

Tim Cover Director of Client Services (214) 597-7740 [email protected]

Devin Polley Director of Client Services (214) 674-7062 [email protected]

Jonathan Dudley Director of Client Services (626) 529-6606 [email protected]

Mark Nation Director of Client Services (515) 664-3305 [email protected]

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Dallas/Fort Worth 2nd Quarter 2015 Industrial · 2013 q2 2013 q3 2013 q4 2014 q1 2014 q2 2014 q3...

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