Dallas Fort WorthDallas-Fort Worth Industrial Overview The Dallas/Fort Worth Industrial market ended...

2016 Q1 Market Trends © 2016 by Xceligent, Inc. All Rights Reserved

INDUSTRIAL MARKET REPORT

Dallas-Fort Worth

1st Quarter 2016


2

Table of Contents and Methodology/Map 2-3

Market Overview 4-5

Statistics by Market 6

Vacancy Rates & Asking Rates 7-8

Leasing & Absorption 9

New Construction 10

Industrial Advisory Board Members 11

Xceligent Team 12

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

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.

Table of Contents/

Methodology of Tracked Set

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.

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.

Vacant SF The total of the direct vacant square footage in a building that is being marketed.

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


3

Industrial Market Map


4

Overview

Dallas-Fort Worth Industrial Overview

The Dallas/Fort Worth Industrial market ended the first quarter of 2016 with a vacancy rate of 7.4%. The vacancy rate continues to drop every quarter and net absorption totaled over 4 million square feet in first quarter of 2016.

The bulk of the absorption for the Dallas/Fort Worth Industrial market was in South Dallas which had just over 1 million square feet of net absorption.

The Dallas/Fort Worth Industrial market has minimal space on the market, while clients are readily available and as a result this has driven rates up.

The Industrial Market continues to grow and stay competitive with just over 14 million square feet of space under construction.

Inventory (SF) Total Available (SF) Total Vacant (SF) Total Vacancy Rate (%) Total Quarterly Net

Absorption (SF) YTD Total Net Absorption

(SF)

87,343,598 11,677,014 8,789,874 10.1% 661,044 661,044

353,923,721 34,089,002 25,282,662 7.1% 1,366,487 1,366,487

165,488,548 15,196,977 10,916,026 6.6% 2,065,787 2,065,787

606,755,867 60,962,993 44,988,562 7.4% 4,093,318 4,093,318

Inventory (SF) Sum of Direct Available

SF Direct Vacant (SF) Direct Vacancy Rate (%)

Direct Quarterly Net Absorption (SF)

YTD Direct Net Absorption (SF)

87,343,598 11,032,905 8,592,595 9.8% 685,510 685,510

353,923,721 33,032,410 25,031,943 7.1% 1,372,185 1,372,185

165,488,548 13,418,198 10,852,400 6.6% 2,065,787 2,065,787

606,755,867 57,483,513 44,476,938 7.3% 4,123,482 4,123,482

Inventory (SF) Available Sublease (SF) Sublease Vacant

(SF) Sublease Vacancy Rate

(%) Sublease Quarterly

Absorption (SF) YTD Sublease Net Absoprtion (SF)

87,343,598 644,109 197,279 0.2% (24,466) (24,466)

353,923,721 1,056,592 250,719 0.1% (5,698) (5,698)

165,488,548 1,778,779 63,626 0.0% - -

606,755,867 3,479,480 511,624 0.1% (30,164) (30,164)


5

Dallas-Fort Worth Industrial Overview

5.0%

5.5%

6.0%

6.5%

7.0%

7.5%

8.0%

8.5%

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1

Historical Vacancy Rate & Net Absorption

(1,000,000)

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1

Historical Net Absorption by Use

Flex/R&D Warehouse - Distribution Bulk Warehouse

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

11.0%

12.0%

13.0%

14.0%

2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1

Historical Vacancy Rates by Use



6

Statistics by Market

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

(SF) Vacancy Rate

(%) Total Quarterly Absorption (SF)

YTD Total Net Absorption (SF)

South Dallas 402 53,056,951 5,458,359 - 10.3% 1,020,203 1,020,203

Flex/R&D 46 2,405,637 223,103 - 9.3% -29,567 -29,567

Warehouse - Distribution 297 29,054,450 3,326,920 - 11.5% 226,947 226,947

Bulk Warehouse 59 21,596,864 1,908,336 - 8.8% 822,823 822,823

Great Southwest 1,328 118,302,402 8,482,019 178,212 7.2% 469,664 469,664

Flex/R&D 184 8,318,663 947,464 30,191 11.4% -114,789 -114,789

Warehouse - Distribution 1,064 82,300,323 6,664,973 84,395 8.1% 813,853 813,853

Bulk Warehouse 80 27,683,416 869,582 63,626 3.1% -229,400 -229,400

South Fort Worth 377 24,625,304 895,413 - 3.6% 62,804 62,804

Flex/R&D 54 2,330,242 102,423 - 4.4% 66,504 66,504

Warehouse - Distribution 319 21,090,836 792,990 - 3.8% -3,700 -3,700

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

East Dallas 820 69,277,307 4,765,323 - 6.9% 302,654 302,654

Flex/R&D 158 7,353,597 573,473 - 7.8% 66,133 66,133

Warehouse - Distribution 629 50,862,259 3,510,954 - 6.9% 297,456 297,456

Bulk Warehouse 33 11,061,451 680,896 - 6.2% -60,935 -60,935

Lonestar Turnpike 185 20,994,650 582,506 - 2.8% 759,493 759,493

Flex/R&D 17 1,203,107 268,598 - 22.3% 10,000 10,000

Warehouse - Distribution 139 8,995,959 119,387 - 1.3% 75,493 75,493

Bulk Warehouse 29 10,795,584 194,521 - 1.8% 674,000 674,000

West Fort Worth 84 4,291,512 139,177 - 3.2% -43,044 -43,044

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


North Fort Worth 442 63,566,800 7,871,736 41,526 12.4% 456,382 456,382

Flex/R&D 50 5,570,794 1,366,957 33,126 24.5% - -

Warehouse - Distribution 305 25,919,751 2,878,314 8,400 11.1% -82,815 -82,815

Bulk Warehouse 87 32,076,255 3,626,465 - 11.3% 539,197 539,197

South Stemmons 1,232 64,351,694 2,587,509 - 4.0% -97,552 -97,552

Flex/R&D 198 8,922,567 707,558 - 7.9% 67,321 67,321

Warehouse - Distribution 1,004 48,218,413 1,712,863 - 3.6% -137,731 -137,731

Bulk Warehouse 30 7,210,714 167,088 - 2.3% -27,142 -27,142

DFW Airport 437 58,143,522 5,975,109 21,000 10.3% 7,243 7,243

Flex/R&D 162 10,264,534 884,130 - 8.6% 103,235 103,235

Warehouse - Distribution 197 22,554,191 3,295,095 21,000 14.6% -69,396 -69,396

Bulk Warehouse 78 25,324,797 1,795,884 - 7.1% -26,596 -26,596

North Stemmons 803 61,112,045 3,255,655 170,886 5.3% 789,704 789,704

Flex/R&D 294 14,937,621 1,305,714 33,962 8.7% 352,271 352,271

Warehouse - Distribution 464 34,720,455 1,660,903 136,924 4.8% 63,593 63,593

Bulk Warehouse 45 11,453,969 289,038 - 2.5% 373,840 373,840

Northeast Dallas 562 39,641,515 2,880,421 100,000 7.3% 323,056 323,056

Flex/R&D 353 21,422,303 2,029,614 100,000 9.5% 61,627 61,627

Warehouse - Distribution 195 14,330,239 561,161 - 3.9% 261,429 261,429

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

Denton/Lewisville 266 29,392,165 2,095,335 - 7.1% 42,711 42,711

Flex/R&D 71 4,424,434 380,840 - 8.6% 78,309 78,309


Bulk Warehouse 33 13,192,299 1,094,570 - 8.3% - -

Grand Total 6,938 606,755,867 44,988,562 511,624 7.4% 4,093,318 4,093,318


7

Vacancy Rates & Asking Rates

Vacancy Rate % Average Weighted Direct Asking Rate

2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1

South Dallas 10.3% 8.3% 8.3% 9.5% 10.3% $3.50 $3.35 $3.34 $3.34 $3.35

Great Southwest 7.7% 7.7% 7.8% 6.8% 7.2% $4.28 $3.96 $4.02 $4.08 $4.27

South Fort Worth 4.5% 4.2% 4.0% 3.9% 3.6% $3.38 $3.40 $3.35 $3.38 $3.72

East Dallas 7.0% 8.1% 9.0% 7.3% 6.9% $3.99 $4.11 $3.88 $3.72 $3.73

Lonestar Turnpike 7.1% 6.7% 5.6% 5.2% 2.8% $3.44 $3.39 $3.25 $3.30 $3.30

North Fort Worth 11.3% 11.7% 12.9% 11.9% 12.4% $3.78 $3.77 $4.96 $5.03 $5.08

South Stemmons 4.9% 4.1% 3.8% 3.9% 4.0% $5.44 $5.21 $5.53 $6.08 $5.76

DFW Airport 9.8% 10.3% 9.4% 9.7% 10.3% $6.88 $6.32 $6.20 $6.03 $5.99

North Stemmons 7.0% 6.1% 6.4% 6.2% 5.3% $4.77 $4.95 $4.92 $5.17 $5.24

Northeast Dallas 8.4% 8.1% 7.7% 7.7% 7.3% $7.19 $6.98 $9.51 $9.66 $9.57

Denton/Lewisville 9.9% 9.9% 8.9% 7.1% 7.1% $5.80 $5.72 $5.57 $6.27 $6.17

Grand Total 8.1% 7.9% 7.9% 7.4% 7.4% $4.80 $4.65 $4.92 $5.03 $5.27


8

Vacancy Rates & Asking Rates

10.3%

7.2%

3.6%

6.9%

2.8% 3.2%

12.4%

4.0%

10.3%

5.3%

7.3% 7.1%

Vacancy Rate by Market

$2.91 $2.25 $2.65

$15.50

$12.00

$7.70 $8.52

$4.18 $4.36

$-

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

$16.00

$18.00


Asking Lease Rate Range by Type (NNN)

$3.40 $4.51

$3.72 $3.72 $2.99

$5.57 $5.73 $5.95 $5.27

$10.07

$7.01

Average Weighted Asking Rates by Market


9

Leasing & Absorption

Largest Lease Transactions

Property Name SF Occupied or

Vacated Tenant Name Market Specific Use

Mountain Creek Bldg 1 - Crow Holdings

630,000 Niagra Bottling Great Southwest Warehouse - Distribution

Turnpike Distribution Center 29 594,000 OHL Lonestar Turnpike Bulk Warehouse

Northport 35 Business Center Bldg A 309,357 Westco Aircraft Parts North Fort Worth Bulk Warehouse

Trammell Crow @ 35-Eagle Bldg D 391,389 Exel North Fort Worth Bulk Warehouse

Point West Industrial VI 263,625 Quaker Sales and Distribution

Company DFW Airport Bulk Warehouse

Texas Crossing 226,224 Smith System Manufacturing Co Northeast Dallas Warehouse - Distribution

Sales

Property Name Approximate

Sale Price SF Sold Buyer Seller Market Specific Use

Lakeview Center II $23,535,000 150,000 TCRG Opportunity II LLC Coppell Associates DFW Airport Flex/ R&D

401 NE 38th St, Fort Worth

$4,187,500 132,000 KW Martin Lumber Co BH Holt 38 LLC North Fort Worth

Warehouse - Distribution

4630 Alpha Rd, Farmers Branch

$2,750,000 38,810 E3 MGMT LLC Stone Done Real Estate LLC North Stemmons


5535 Airport Fw $1,687,500 25,460 Qualbe Marketing Group LLC

Richard D Knowles & RDK Family Limited

Great Southwest



10

New Construction

3,628,398

5,776,646

230,622

1,670,673

746,763 1,099,873

42,000

1,065,623

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

Current New Construction by Submarket


11

Industrial Advisory Board Members

Dallas Fort Worth

CBRE Steve Berger CBRE Bob Scully

Steve Trese John Brewer

David Easterling Bradford Nick Talley

Colliers Allen Gump Michael Spain

Matt Thompson Jim Ferris

Duke Realty Randy Wood Cushman & Wakefield Blake Anderson

Holt Lunsford Josh Barnes E Smith Realty Partners Jim Hazard

Lee & Associates George Tanghongs Holt Lunsford Canon Shoults

Nathan Denton Matt Carthey

Brett Lewis Donnie Rohde

Lincoln Property Michael Peinado Lee & Associates Mark Graybill

Mark V Mike McCartan Jones Lang LaSalle Jamie Galati

NAI Robert Lynn Rick Medinis George Curry

David Peterson NAI Roberty Lynn Michael Stanzel

Craig Jones Patrick Embry

Robert Blankenship Prologis Mitch Pruitt

John Leinbaugh Stream Cannon Green

Prologis Mitch Pruitt Transwestern Jeff Givens

Cody Riles

Stream Blake Kendrick Research

Seth Koschack CBRE CBRE Research

Hanes Chatham Jones Lang LaSalle Steve Triolet

Jason Moser Walter Bialas

Ryan Boozer Colliers Mike Otillio

Transwestern John Fulton Swearingen Greg Bennett

Brett Owens Henry S Miller Doug Prude

Maverick Brad Lipton PM Realty Group Ariel Guerrero

Mercer Jeremy Mercer Cushman & Wakefield Ryan Tharp

Avison Young Matt Middendorf

Jim Lake Company Conner Ivy

Hudson Peters Michelle Hudson

Younger Partners Carter Crow

Whitehall Roy Greenberg

Jessica Reinhardt


12

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 :

Xceligent Dallas-Fort Worth Team

Tonalea Rehmer Dirctor of Analytics (816) 559-5965 [email protected]

Chris Summers VP of Sales (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]

Brenda Schzerba Director of Client Services (972) 632-9479 [email protected]

Nicole McCarty Director of Client Services (248) 778-7080 [email protected]

mailto:[email protected]

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