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.
3 2015 Q2 Market Trends © 2015 by Xceligent, Inc. All Rights Reserved
Industrial Market Map
4 2015 Q2 Market Trends © 2015 by Xceligent, Inc. All Rights Reserved
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.
5 2015 Q2 Market Trends © 2015 by Xceligent, Inc. All Rights Reserved
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
6 2015 Q2 Market Trends © 2015 by Xceligent, Inc. All Rights Reserved
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
7 2015 Q2 Market Trends © 2015 by Xceligent, Inc. All Rights Reserved
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)
Warehouse - Distribution 138 8,358,973 480,741 124,715 3.2% 40,395
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
Warehouse - Distribution 81 4,103,700 153,862 7,000 1.6% 9,000
Grand Total 6,918 600,103,520 69,597,823 4,240,295 8.2% 4,225,346
8 2015 Q2 Market Trends © 2015 by Xceligent, Inc. All Rights Reserved
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
9 2015 Q2 Market Trends © 2015 by Xceligent, Inc. All Rights Reserved
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
10 2015 Q2 Market Trends © 2015 by Xceligent, Inc. All Rights Reserved
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
Valwood Corporate Center Bldg 4 261,120 North Stemmons
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
11 2015 Q2 Market Trends © 2015 by Xceligent, Inc. All Rights Reserved
New Construction
Notable Projects Underway [cont.]
Property Name Building Size Market
Crawford Electric Supply 160,000 DFW Airport
Valwood Corporate Center Bldg 1 158,777 North Stemmons
Valwood Corporate Center Bldg 2 154,384 North Stemmons
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
12 2015 Q2 Market Trends © 2015 by Xceligent, Inc. All Rights Reserved
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)
13 2015 Q2 Market Trends © 2015 by Xceligent, Inc. All Rights Reserved
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
14 2015 Q2 Market Trends © 2015 by Xceligent, Inc. All Rights Reserved
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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