Market Insights Dallas/Fort Worth 2Q 2021 - INDUSTRIAL
Bradford Commercial Real Estate Services 3100 McKinnon Street, Suite 400 Dallas, Texas 75201 DALLAS-FORT WORTH INDUSTRIAL MARKET INSIGHTS 4Q2019 Table of Contents
BRADFORD DALLAS-FORT WORTH INDUSTRIAL TEAM 1
DALLAS - FORT WORTH OVERALL MARKET INSIGHT 2
SUBMARKET EXPERTISE • East Dallas • DFW Airport • Great Southwest 3 • North Fort Worth • Northeast Dallas • South Dallas • Northwest Dallas • Stemmons Freeway • South Fort Worth
The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. 1 DFW INDUSTRIAL MARKET EXPERTS INDUSTRIAL COVERAGE Binformed
Brian Pafford, CCIM Michael W Spain Nick Talley Michael T Grant Executive Vice President Executive Vice President Executive Vice President Senior Vice President Managing Partner Managing Partner Managing Partner Managing Partner Stemmons Corridor Great Southwest Tarrant County Northeast Corridor 972.389.9002 972.337.9325 817.921.8177 972.776.7062
Joe Santaularia Susan Singer, CCIM Jim Ferris First Vice President Executive Vice President Vice President DFW Airport Brokerage Services Great Southwest 972.337.9336 972.776.7043 972.337.9334
Erik Blais Shane Benner Jason Finch Josh Meraz First Vice President Vice President Vice President Market Director Greater Fort Worth Greater Fort Worth Stemmons Corridor Great Southwest 817.921.8179 817.921.8174 972.389.9006 972.776.7037
• Bradford Corporate Office
• Bradford Field Offices Brandon Alexander Noah Dodge Broker Associate Senior Associate Greater Fort Worth Northeast Corridor 817.921.8180 972.776.7101
2 3 Existing Inventory Vacancy Delivered Inventory Under Construction Leasing Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity East Dallas Industrial Vacancy East Dallas Industrial Net Absorption Construction 2018 Q1 14.0% 619 44,394,746 4,402,751 9.9% (33,558) 0 0 4 1,845,121 531,119 1,400,000 2018 Q2 619 44,394,746 4,140,424 9.3% 262,516 0 0 7 2,823,060 964,008 12.0% 1,200,000 2018 Q3 622 45,362,637 4,098,826 9.0% 1,009,489 3 967,891 5 1,888,635 779,048 Existing Inventory Vacancy Delivered Inventory Under Construction 1,000,000 2018 Q4 623 45,396,103 4,530,883 10.0% (398,591) 1 33,466 5 Leasing2,092,642 380,392 10.0% Period Net Absorption Under East Dallas Industrial800,000 Net Absorption 2019 Q1 # Bldgs624 Total46,273,333 RBA Vacant4,119,432 SF Vacant % 8.9% 1,288,681# Bldg Delivered1 # 877,230Bldgs 4 Activity1,215,412 607,879 East Dallas Industrial Vacancy Construction 8.0% 2018 Q1 14.0% 600,000 2019 Q2 619625 44,394,74646,418,2934,402,7514,543,2209.9% 9.8% (33,558) (278,828)0 01 144,9604 1,845,1214 531,1192,277,990 589,271 1,400,000 2018 Q2 619 44,394,746 4,140,424 9.3% 262,516 0 0 7 2,823,060 964,008 400,000 2019 Q3 626 46,667,183 4,802,577 10.3% (10,467) 1 248,890 3 2,029,100 820,13812.0% 6.0% 1,200,000 2018 Q3 622 45,362,637 4,098,826 9.0% 1,009,489 3 967,891 5 1,888,635 779,048 2019 Q4 628 47,488,745 5,630,344 11.9% (6,205) 2 821,562 1 1,207,538 787,939 1,000,000 200,000 2018 Q4 623 45,396,103 4,530,883 10.0% (398,591) 1 33,466 5 2,092,642 380,392 10.0% 4.0% EAST2020 DALLASQ1 628 47,488,745 5,317,393 11.2% 312,951 0 0 6 2,013,535 489,626 800,000 0 2019 Q1 624 46,273,333 4,119,432 8.9% 1,288,681 1 877,230 4 1,215,412 607,879 8.0% 20192020 Q2 Q2 625629 46,418,29348,696,2834,543,2205,270,1039.8% 10.8%(278,828) 1,254,8281 144,9601 1,207,5384 2,277,9907 589,2711,004,106 217,661 2.0% 600,000 (200,000) INDUSTRIAL OVERALL MARKET INSIGHTS SUBMARKET20192020 Q3 Q3 626630 46,667,18348,716,2834,802,5775,139,27110.3% 10.5%(10,467) 150,832 1 248,8901 20,0003 2,029,1006 820,138984,106 950,7016.0% 400,000 (400,000) 0.0% 20192020 Q4 Q4 628632 47,488,74548,914,3925,630,3445,189,51711.9% 10.6% (6,205) 147,863 2 821,5622 198,1091 1,207,5387 787,9392,324,084 848,418 200,000 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 4.0% 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 20202021 Q1 Q1 628634 47,488,74549,459,9895,317,3934,650,29911.2% 9.4% 312,951 1,084,8150 02 545,5976 2,013,5355 489,6261,778,487 555,996 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 0 Q4 Q1 Q2 2020 Q2 629 48,696,283 5,270,103 10.8% 1,254,828 1 1,207,538 7 1,004,106 217,661 2.0% (200,000) DFW Industrial Markets (Flex, Shallow-Bay, Bulk) Binformed 2021 Q2 636 49,710,389 4,600,113 9.3% 300,586 2 250,400 8 4,415,960 371,002 2020 Q3 630 48,716,283 5,139,271 10.5% 150,832 1 20,000 6 984,106 950,701 (400,000) 0.0% 2020 Q4 632 48,914,392 5,189,517 10.6% 147,863 2 198,109 7 2,324,084 848,418 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 Existing Inventory Vacancy Delivered Inventory Under Construction East Dallas Overview 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 Net Leasing East Dallas Industrial Leasing Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 EastQ2 Q3 DallasQ4 Q1 IndustrialQ2 Construction Period Under Overall DFW Industrial Vacancy Overall DFW Industrial Net Absorption The East Dallas/Mesquite submarket is a 2021 Q1 634 49,459,989 4,650,299 9.4% 1,084,815 2 545,597 5 1,778,487 555,996 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 # Bldgs Total RBA Vacant SF Vacant % Absorption # Bldg Delivered # Bldgs Activity Absorption Construction longstanding transportation center. It is home 2021 Q2 636 49,710,389vs Previous4,600,113 Qtr 9.3% vs 300,58612 Months Ago 2 250,400 8 4,415,960 371,002 1,200,000 2018 Q1 10,170 822,697,096 52,804,405 6.4% 1,135,067 26 2,556,728 106 28,827,654 17,087,685 9.0% 40,000,000 12,000,000 300,586 1,084,815 1,254,828 2018 Q2 10,202 831,684,207 55,095,222 6.6% 6,618,936 31 8,909,564 102 28,017,402 13,214,656 8.0% to one of Dallas-Fort Worth's major intermodal Vacancy vs Previous Qtr vs 12 Months Ago East Dallas Industrial Leasing Activity East Dallas Industrial35,000,000 Construction 2018 Q3 10,238 840,411,788 57,476,135 6.8% 6,346,668 36 8,727,581 95 27,185,992 19,745,398 7.0% 10,000,000 hubs. Vacancies in East Dallas/Mesquite have 1,000,000 2018 Q4 10,270 845,435,901 56,259,388 6.7% 6,199,800 28 4,871,053 108 32,507,843 14,589,764 tracked two percent higher than the rest of the Absorption9.3% vs Previous9.4% Qtr vs 12 Months Ago10.8% 1,200,000 6.0% 8,000,000 40,000,000 30,000,000 2019 Q1 10,299 852,746,036 57,291,831 6.7% 6,315,037 29 7,310,135 122 35,287,331 15,825,172 metroplex and are currently 9.4%. In terms of 300,586U/C SF 1,084,815 1,254,828 DFW5.0% Industrial Markets (Flex, Shallow-Bay, Bulk) vs Previous Qtr vs 12 Months Ago Vacancy 800,000 35,000,000 2019 Q2 10,323 859,754,931 57,530,684 6.7% 6,706,502 23 6,977,845 128 34,314,506 13,554,684 6,000,000 construction, many recent new builds were vs Previous Qtr vs 12 Months Ago 1,000,000 25,000,000 4.0% 4,415,960 1,778,487 1,004,106 2019 Q3 10,348 862,468,186 56,151,451 6.5% 4,129,572 25 2,713,255 135 37,033,317 16,411,242 9.3% 9.4% 10.8% build-to-suits, including a 352,000-SF facility Delivered SF 30,000,000 2019 Q4 10,391 874,853,925 58,931,309 6.7% 9,605,881 43 12,385,739 120 31,315,753 18,457,511 3.0% 4,000,000 U/C SF vs Previous Qtr vs 12 Months Ago 20,000,000 Existing Inventory Vacancy Delivered Inventory Under Constructionfor FedEx Ground and an 877,000-SF facility vs Previous Qtr vs 12 Months Ago 600,000 2020 Q1 10,427 883,052,867 58,890,830 6.7% 8,239,421 36 8,198,942 140 34,363,413 15,553,150 2.0% Net Leasing 250,400 545,597 1,207,538 800,000 25,000,000 Period 2,000,000 Underfor Ashley Furniture. Exeter Property Group 4,415,960 1,778,487 1,004,106 2020 Q2 10,459 893,197,461 63,448,880 7.1% 5,586,544 32 10,144,594 131 28,519,975 16,545,651 Absorption Activity Overall DFW Industrial Vacancy Overall DFW Industrial Net Absorption 15,000,000 1.0% # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs LeasingDelivered Activity SF vs Previousvs Previous Qtr Qtr vs 12 Monthsvs 12 Ago Months Ago 20,000,000 2020 Q3 10,500 899,860,340 65,337,451 7.3% 4,774,308 41 6,662,879 121 29,689,321 17,297,902 0 Constructionbroke ground and added a four-building 0.0% 600,000 400,000 10,000,000 2020 Q4 10,534 908,220,134 69,592,430 7.7% 4,104,815 34 8,359,794 126 31,684,423 22,457,322 2018 Q1 10,170 822,697,096 52,804,405 6.4% 20181,135,0672018 2018 2018 2019 2019262019 2019 20202,556,7282020 2020 2020 2021 2021106 28,827,654industrial park17,087,685 just west of the intermodal,9.0% 250,400371,002 545,597555,996 1,207,538 217,661 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 15,000,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Leasing Activity vs Previous Qtr vs 12 Months Ago 12,000,000 2021 Q1 10,564 915,574,555 65,934,122 7.2% 11,012,729 30 7,354,421 122 30,220,631 15,628,194 2018 Q2 10,202 831,684,207 55,095,222 6.6% 6,618,936 31 8,909,564 102 28,017,402totaling more13,214,656 than 1 million SF. The submarket8.0% 5,000,000 2021 Q2 10,595 921,139,745 61,008,481 6.6% 10,490,831 31 5,565,190 132 37,935,509 22,426,780 centers on Union Pacific Railroad's intermodal 371,002 555,996 217,661 400,000 10,000,000 2018 Q3 East Dallas Vital Statistics 200,000 10,238 840,411,788 57,476,135 6.8% 6,346,668 36 8,727,581 95 27,185,992hub in Mesquite.19,745,398 After mainly ignoring East7.0% 10,000,000 5,000,000 0 2018Overall Q4 DFW 10,270Industrial Leasing845,435,901 Activity56,259,388 6.7% Overall6,199,800 DFW Industrial28 Construction4,871,053 108 32,507,843Dallas/Mesquite14,589,764 in the '90s, developers 1,400,000 East Dallas Vital Statistics 14.0% 200,000 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 6.0% 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 DFW Industrial Statistics by Market 1,200,000 8,000,000 0 25,000,0002019 Q1 10,299 852,746,036 57,291,831 6.7%40,000,000 6,315,037 29 7,310,135 122 35,287,331ramped up construction15,825,172 in the early 2000s, 1,400,000 14.0% 12.0% 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 Existing Inventory Vacancy Net Under Leasing 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020Q1 2021Q2 Q32021Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Market Deliveries 35,000,000 when the intermodal was being constructed.5.0% 1,200,0001,000,000 0 Delivered Under Construction # Blds Total RBA Direct SF Vac % Absorption Const SF Activity 2019 Q2 10,323 859,754,931 57,530,684 6.7% 6,706,502 23 6,977,845 128 34,314,506 13,554,684 12.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 20,000,000 30,000,000 800,000 10.0%6,000,000 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 DFW Airport Ind 665 87,453,982 5,423,816 6.2% 437,698 140,056 1,640,212 2,543,270 Nearly half of the inventory here has been 1,000,000 Delivered Under Construction 2019 Q3 25,000,000 4.0% 10.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 East Dallas Ind 636 49,710,389 4,600,113 9.3% 300,586 250,400 4,415,960 371,002 10,348 862,468,186 56,151,451 6.5% 4,129,572 25 2,713,255 135 37,033,317delivered since16,411,242 2000. Almost all of that came 800,000600,000 8.0% 15,000,000 20,000,000 600,000 GSW/Arlington Ind 1,153 118,418,070 4,405,259 3.7% 2,267,199 0 2,309,193 3,592,661 2019 Q4 10,391 874,853,925 58,931,309 6.7% 9,605,881 43 12,385,739 120 31,315,753during the last18,457,511 decade. 3.0% 400,000 8.0% 4,000,000 15,000,000 400,000 6.0% North Ft Worth Ind 787 117,529,920 13,003,411 11.1% 2,065,045 1,739,371 9,201,020 3,425,994 200,000 10,000,0002020 Q1 10,427 883,052,867 58,890,830 6.7%10,000,000 8,239,421 36 8,198,942 140 34,363,413 15,553,150 200,000 6.0% Northeast Dallas Ind 1,594 118,565,219 8,359,608 7.1% 1,613,345 609,771 2,884,428 1,900,530 5,000,000 2.0% 0 4.0% Leasing 0 4.0% 2,000,000 NW Dallas Ind 1,414 115,949,460 5,556,360 4.8% 1,115,624 350,400 2,426,501 2,470,513 5,000,0002020 Q2 10,459 893,197,461 63,448,880 7.1% 0 5,586,544 32 10,144,594 131 28,519,975 16,545,651 (200,000) 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 1.0% (200,000) NW Dallas Outly Ind 39 2,790,425 75,300 2.7% 22,641 0 48,300 0 East Dallas/Mesquite is one of four 2.0% 2.0% 2020 Q3 10,500 899,860,340 65,337,451 7.3% Q14,774,308Q2 Q3 Q4 Q1 Q241Q3 Q4 Q16,662,879Q2 Q3 Q4 Q1 Q2121 29,689,321 17,297,902 (400,000)(400,000) 0 South Dallas Ind 715 107,655,582 7,088,868 6.6% 1,486,545 1,173,080 8,821,492 3,896,009 0 submarkets containing an intermodal 0.0% (600,000)(600,000) 0.0% 0.0% 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 South Ft Worth Ind 1,504 86,126,358 6,669,751 7.7% 543,334 1,190,112 4,770,820 2,440,436 20202018 Q42018 2018 2018 201910,5342019 2019 2019908,220,1342020 2020 2020 202069,592,4302021 2021 7.7% 4,104,815Delivered 34Under Construction8,359,794 126 31,684,423terminal in the22,457,322 Dallas-Fort Worth metroplex. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2018 2018 201820182018201820192018201820192018201820182019 201920192019201920202019201920202020201920202020202020202020202020202020202120212021202020212021 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 South Stemmons Ind 2,088 116,940,340 5,825,995 5.0% 638,814 112,000 1,447,583 1,750,742 2021 Q1 10,564 915,574,555 65,934,122 7.2% 11,012,729 30 7,354,421 122 30,220,631Unsurprisingly,15,628,194 the majority of the Q1 Q2 Q3 Q4Q1Q1Q2Q1Q2Q3 Q2Q3Q4 Q4Q1Q3 Q1Q2Q4Q3Q2 Q1Q4Q3 Q1Q2Q4Q2Q3Q1Q3 Q2Q4Q4 Q3Q1Q1 Q2Q4Q2Q1 Q2 Totals 10,595 921,139,745 61,008,481 64.2% 10,490,831 5,565,190 37,965,509 22,391,157 submarket's inventory is clustered around 2021 Q2 10,595 921,139,745 61,008,481 6.6% 10,490,831 31 5,565,190 132 37,935,509 22,426,780 NetNet Absorption Absorption DeliveredDelivered Vacant % Vacant % the intermodal. Due to the presence of freight rail, and the vast amount of light industrial and manufacturing space here and in the Overall DFW Industrial Construction surrounding area, a large portion of the tenant Overall DFW Industrial Leasing Activity *** NW Dallas Outly DFW Industrial Statistics by Market base consists of 3PLs and manufacturing **** Don't use Henderson 25,000,000 40,000,000 Existing Inventory Vacancy Net Under Leasing parts suppliers. IDI Logistics completed the 487,000-SF Building D at Skyline Trade Center in March 2018, and the building was Market Deliveries 35,000,000 # Blds Total RBA Direct SF Vac % Absorption Const SF Activity leased by Elements International in September 2018. Vacancies in East Dallas/Mesquite have trended above the metro average 20,000,000 30,000,000 DFW Airport Ind 665 87,453,982 5,423,816 6.2% 437,698 140,056 1,640,212 2,543,270 over the past few years. 1165 154434898 25,000,000 East Dallas Ind 636 49,710,389 4,600,113 9.3% 300,586 250,400 4,415,960 371,002 There was a wave of speculative supply completing15,000,000 in late 2019, vacancy rates rose sharply. There is currently 2.1 million SF 20,000,000 GSW/Arlington Ind 3.7% 1,153 118,418,070 4,405,259 2,267,199 0 2,309,193 3,592,661 underway. Most tenant movement involves relatively smaller spaces. However, FedEx moved into its new 352,000-SF facility 15,000,000 North Ft Worth Ind 787 117,529,920 13,003,411 11.1% 2,065,045 1,739,371 9,201,020 3,425,994 in September 2017, and Elements International10,000,000 took 487,000 SF at the Skyline Trade Center in 18Q3. Ashley Furniture opened an 10,000,000 Northeast Dallas Ind 1,594 118,565,219 8,359,608 7.1% 1,613,345 609,771 2,884,428 1,900,530 877,000 SF distribution hub in 19Q1. In terms of move-outs, Shippers Warehouse vacated 420,000 SF at the Eastpoint Business 5,000,000 Center in early 2018 for a new facility in the SE Dallas/I-45 Submarket (which also contains a Union Pacific intermodal facility). NW Dallas Ind 1,414 115,949,460 5,556,360 4.8% 1,115,624 350,400 2,426,501 2,470,513 5,000,000 0 NW Dallas Outly Ind 2.7% 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 39 2,790,425 75,300 22,641 0 48,300 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 South Dallas Ind 715 107,655,582 7,088,868 6.6% 1,486,545 1,173,080 8,821,492 3,896,009 Movers & Shakers 0 Largest Vacancies: South Ft Worth Ind 1,504 86,126,358 6,669,751 7.7% 543,334 1,190,112 4,770,820 2,440,436 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 Delivered Under Construction Tenant SF Building Q1 Q2 Q3 Q43000Q1 SkylineQ2 DriveQ3 Q4– 753,000Q1 Q2sf Q3 Q4 Q1 Q2 South Stemmons Ind 2,088 116,940,340 5,825,995 5.0% 638,814 112,000 1,447,583 1,750,742 Novamex 143,801 4401 Samuell Blvd Prologis Mesquite 2 – 260,600 sf Exxci 19,840 109 Silent Wings Blvd 1201 Big Town Blvd – 185,552 sf Totals 10,595 921,139,745 61,008,481 64.2% 10,490,831 5,565,190 37,965,509 22,391,157 Rhythm Dance 12,000 11815 S Profit Row Zaxo Group Inc 9,668 4612 S Buckner Blvd East Dallas
East Dallas *** NW Dallas Outly **** Don't use Henderson The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy thereof. The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy 4 The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. 5 DFW Overall Industrial
1165 154434898
DFW Overall Industrial Existing Inventory Vacancy Delivered Inventory Under Construction Leasing Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity DFW Airport Industrial Vacancy DFW Airport Industrial Net Absorption Construction 10.0% 2018 Q1 619 75,059,398 5,338,172 7.1% (855,153) 4 543,892 16 3,126,855 1,956,173 4,000,000 9.0% 2018 Q2 620 75,559,398 5,122,966 6.8% 715,206 1 500000 17 3,232,245 1,892,511 3,500,000 2018 Q3 626 76,217,318 5,232,357 6.9% 548,529 6 657,920 12 4,110,845 3,924,135 8.0% 3,000,000 Existing Inventory Vacancy Delivered Inventory Under Construction 2018 Q4 629 76,730,564 5,225,134 6.8% 520,469 3 513,246 9 Leasing3,597,599 2,523,509 7.0% 2,500,000 Period Net Absorption Under 2019 Q1 # Bldgs634 Total77,974,835 RBA Vacant6,065,756 SF Vacant % 7.8% 403,649# Bldg Delivered5 #1,244,271 Bldgs 9 Activity4,691,796 2,313,683 DFW6.0% Airport Industrial Vacancy DFW Airport Industrial Net Absorption Construction 2,000,000 2019 Q2 637 80,116,745 6,257,021 7.8% 1,950,645 3 2,141,910 8 2,790,347 2,135,76210.0% 2018 Q1 619 75,059,398 5,338,172 7.1% (855,153) 4 543,892 16 3,126,855 1,956,173 5.0% 4,000,000 1,500,000 2019 Q3 637 80,116,745 5,643,918 7.0% 613,103 0 0 17 4,585,592 2,074,2749.0% 2018 Q2 620 75,559,398 5,122,966 6.8% 715,206 1 500000 17 3,232,245 1,892,511 4.0% 3,500,000 1,000,000 20192018 Q3Q4 626638 76,217,31880,328,1635,232,3575,610,4656.9% 7.0% 548,529 244,871 6 657,9201 211,41812 4,110,84518 3,924,1354,836,202 2,084,1718.0% 3.0% 3,000,000 500,000 2018 Q4 629 76,730,564 5,225,134 6.8% 520,469 3 513,246 9 3,597,599 2,523,509 DFW 2020AIRPORT Q1 641 80,593,146 5,826,275 7.2% 49,173 3 264,983 23 DFW7,077,350 2,753,7467.0% AIRPORT 2,500,000 0 2.0% 2019 Q1 634 77,974,835 6,065,756 7.8% 403,649 5 1,244,271 9 4,691,796 2,313,683 6.0% 2020 Q2 648 82,289,429 7,050,255 8.6% 472,303 7 1,696,283 18 5,609,640 2,369,145 2,000,000 (500,000) 2019 Q2 637 80,116,745 6,257,021 7.8% 1,950,645 3 2,141,910 8 2,790,347 2,135,762 1.0% 2020 Q3 652 83,772,022 6,559,127 7.8% 1,973,721 4 1,482,593 15 4,267,103 4,052,8725.0% 1,500,000 SUBMARKET2019 Q3 637 80,116,745 5,643,918 7.0% 613,103 0 0 17 4,585,592 2,074,274 SUBMARKET (1,000,000) 4.0% 0.0% 1,000,000 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 20202019 Q4 638657 80,328,16385,545,4985,610,4657,920,3017.0% 9.3% 244,871 412,302 1 211,4185 1,773,47618 4,836,20210 2,084,1712,493,627 2,472,461 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 3.0% 500,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 20212020 Q1 641664 80,593,14687,313,9265,826,2755,721,4587.2% 6.6% 49,173 3,967,2713 264,9837 1,768,42823 7,077,3505 2,753,7461,040,662 2,058,334 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2.0% 0 20212020 Q2 648665 82,289,42987,453,9827,050,2555,423,8168.6% 6.2% 472,303 437,698 7 1,696,2831 140,05618 5,609,6408 2,369,1451,640,212 2,543,270 (500,000) 1.0% 2020 Q3 652 83,772,022 6,559,127 7.8% 1,973,721 4 1,482,593 15 4,267,103 4,052,872 (1,000,000) 0.0% DFW Airport Overview 2020 Q4 657 85,545,498 7,920,301 9.3% 412,302 5 1,773,476 10 2,493,627 2,472,461 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2018 2018 2018 2018 2019 2019 2019DFW2019 2020 Airport2020 2020 Industrial2020 2021 2021 Leasing ActivityQ1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1DFWQ2 Q3 AirportQ4 Q1 IndustrialQ2 Construction Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 DallaDallas/Fort Worth International Airport Existing Inventory2021 Q1 Vacancy664 87,313,926 5,721,458Delivered Inventory6.6% Under3,967,271 Construction 7 1,768,428 5 1,040,662 2,058,334 Absorption vs Previous Qtr vs 12 Months Ago Leasing 4,500,000 is the primary driver of demand forPeriod this 2021 Q2 665 87,453,982Net Absorption5,423,816 6.2% 437,698 Under 1 140,056 8 1,640,212 2,543,270 # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity DFW Airport Industrial Vacancy DFW Airport Industrial Net Absorption 40,000,000 437,698 3,967,271 472,303Construction submarket. The airport is not only one of 10.0% 4,000,000 2018 Q1 619 75,059,398 5,338,172Vacancy 7.1% (855,153) 4 543,892 16 3,126,855 1,956,173 4,000,000 35,000,000 the busiest in the U.S. for passenger travel, vs Previous Qtr vs 12 Months Ago 9.0% DFW Airport Industrial Leasing Activity DFW Airport Industrial Construction 2018 Q2 620 75,559,398 5,122,966 6.8% 715,206 1 500000 17 3,232,245 1,892,511 3,500,000 but it ranks as one of the largest cargo2018 Q3 626 76,217,318 Absorption5,232,3576.2% 6.9% vs548,529 Previous6.6% Qtr 6 657,920vs 12 Months12 Ago8.6%4,110,845 3,924,135 8.0% 4,500,000 3,500,000 3,000,000 40,000,000 30,000,000 airports in the country, and roughly2018 one- Q4 629 76,730,564 5,225,134437,698U/C SF 6.8% 520,4693,967,271vs Previous 3Qtr 513,246 472,303vs 129 Months3,597,599 Ago 2,523,509 7.0% 2,500,000 4,000,000 2019 Q1 634 77,974,835 6,065,756 7.8% 403,649 5 1,244,271 9 4,691,796 2,313,683 6.0% 3,000,000 25,000,000 third of the submarket's inventory is within 1,640,212Vacancy vs Previous1,040,662 Qtr vs 12 Months5,609,640 Ago 2,000,000 35,000,000 its boundaries. Though most major2019 airport- Q2 637 80,116,745 6,257,021 7.8% 1,950,645 3 2,141,910 8 2,790,347 2,135,762 5.0% 1,500,000 Delivered6.2% SF 6.6% 8.6% 3,500,000 2,500,000 30,000,000 2019 Q3 637 80,116,745 5,643,918 7.0% 613,103vs Previous 0Qtr 0 vs 1217 Months4,585,592 Ago 2,074,274 4.0% 1,000,000 20,000,000 related distribution facilities and tenants2019 Q4 638 80,328,163 5,610,465U/C SF 7.0% vs244,871 Previous Qtr 1 211,418vs 12 Months18 Ago 4,836,202 2,084,171 140,056 1,768,428 1,696,283 3.0% 3,000,000 500,000 25,000,000 are in the neighboring East DFW Airport/Las2020 Q1 641 80,593,146 5,826,2751,640,212 7.2% 49,1731,040,662 3 264,9835,609,64023 7,077,350 2,753,746 2,000,000 15,000,000 Leasing Activity 2.0% 0 Colinas Submarket, many large tenants2020 Q2 in 648 82,289,429 Delivered7,050,255 SF 8.6% 472,303vs Previous 7Qtr 1,696,283 vs 1218 Months5,609,640 Ago 2,369,145 2,500,000 (500,000) vs Previous Qtr vs 12 Months Ago 1.0% 20,000,000 West DFW Airport/Grapevine are dependent2020 Q3 652 83,772,022 6,559,1272,543,270 7.8% 1,973,7212,058,3344 1,482,593 152,369,1454,267,103 4,052,872 1,500,000(1,000,000) 10,000,000 140,056 1,768,428 1,696,283 0.0% 2020 Q4 657 85,545,498 7,920,301 9.3% 412,302 5 1,773,476 10 2,493,627 2,472,461 2,000,000 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 202115,000,000 on air transportation and the logistics Leasing Activity vs Previous Qtr vs 12 Months Ago 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2021 Q1 664 87,313,926 5,721,458 6.6% 3,967,271 7 1,768,428 5 1,040,662 2,058,334 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 1,000,000 5,000,000 industry. The submarket's location also gives 2,543,270 2,058,334 2,369,145 1,500,000 10,000,000 2021 Q2 665 87,453,982 5,423,816 6.2% DFW437,698 Airport1 Vital140,056 Statistics8 1,640,212 2,543,270 tenants access to major arteries, including 500,000 0 1,000,000 5,000,000 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 Highway 360, Highway 114, Highway 121, and 5,000,000 10.0% DFW Airport Industrial Leasing Activity DFW Airport Industrial Construction DFW Airport Vital Statistics 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Highway 183/I-820. Due to its central location,Absorption vs Previous Qtr vs 12 Months Ago 9.0% 4,500,000 500,000 0 4,000,000 40,000,000 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 20202018 20182021201820212018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 virtually anywhere in the metroplex can437,698 be 3,967,2715,000,000 472,303 10.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 8.0% 4,000,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Delivered Under Construction Vacancy vs Previous Qtr vs 12 Months Ago 9.0% 35,000,000 reached within one hour, even in heavy traffic. 3,000,0004,000,000 7.0% 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 6.2% 6.6% 8.6% 8.0% 3,500,000 Delivered Under Construction While often overshadowed by the Q1 Q2 30,000,000Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 U/C SF vs Previous2,000,0003,000,000 Qtr vs 12 Months Ago 7.0% 6.0% overwhelming activity found on the east side 5.0% 3,000,000 25,000,000 1,640,212 1,040,6622,000,000 5,609,640 6.0% of the airport, the abundance of newerDelivered assets, SF vs Previous1,000,000 Qtr vs 12 Months Ago 5.0% 4.0% 2,500,000 20,000,000 140,056 1,768,4281,000,000 1,696,283 central location, and access to D/FW Airport 0 4.0% 3.0% 2,000,000 15,000,000 Leasing Activity makes the submarket desirable with strong vs Previous Qtr0 vs 12 Months Ago 3.0% 2.0% 2,543,270 2,058,334(1,000,000) 2,369,145 2.0% 1,500,000 10,000,000 long-term growth potential. (1,000,000) 1.0% 1.0% 5,000,000 (2,000,000) 0.0% 1,000,000 DFW(2,000,000) Airport Vital Statistics 0.0% 500,000 0 East DFW Airport/Las Colinas is one of 2018201820182018201820182018201820192019201920192019201920202019202020202020202020202020202120202021 20212021 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 the premier industrial submarkets in5,000,000 the Q1Q1Q2Q2Q3 Q3Q4 Q4Q1 Q1Q2 Q310.0%Q2 Q4Q3 Q1Q4Q2Q1Q3 Q2Q4 Q3Q1 Q4Q2 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 9.0% 0 4,000,000 NetNet Absorption Absorption DeliveredDelivered Vacant % Vacant % 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 metroplex. In addition to its proximity to the 8.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Delivered Under Construction airport, the submarket's easy access3,000,000 to State 7.0% 2,000,000 6.0% Highway 114, State Highway 121, and the 5.0% LBJ Freeway make it a favorite of developers1,000,000 4.0% and tenants, despite ranking among the most0 3.0% Drive that employs 1,000 workers. Other companies signing leases in the first quarter include Pitney Bowes, Heritage Auctions, 2.0% (1,000,000) supply-heavy submarkets in the metroplex over the last decade, with 30% of the total inventory1.0% being added since 2010. As a and Fluid Life. Activity continued into the second quarter with 1.2 MSF of activity reported. The median months on market have result, the submarket has a high concentration(2,000,000) of efficient product with clear heights and 0.0%dock configurations suitable for modern remained stable at just over 6 months. 20182018201820182019201920192019202020202020202020212021 distribution. Due to land constraints, virtuallyQ1 allQ2 currentQ3 Q4 andQ1 Q2futureQ3 Q4 constructionQ1 Q2 Q3 Q4 willQ1 takeQ2 place on land owned by the Dallas/Fort Worth International Airport. Rent growth continuesNet Absorption to move in theDelivered right direction,Vacant and % with vacancies at 6.2%, the area tracks near DFW West Vacancies typically trend below the metro average, as well as neighboring submarkets like East DFW Airport/Las the metro average. This is also one of the more liquid submarkets in the metro, both national and institutional firms are active Colinas and Upper Great Southwest. Increased development activity will place supply-side pressure on vacancy rates in the here. short term. The main drawback to this submarket is the price—rents are significantly higher than nearby submarkets since the majority of industrial zoned land here falls within the boundaries of the Dallas/Fort Worth International Airport itself. The only West DFW Airport/Grapevine has performed well for several quarters. Steady absorption of existing inventory and robust leasing way to build on the airport is through a ground lease. At the same time, several developers have found resounding success for new speculative projects have enabled vacancies to remain low for now. Vacancy rates will face more significant pressure as operating in this unique environment, and it may take some developers time to understand the value proposition. Also of note, several projects were delivered in 2020. While there is a higher premium on rents than nearby submarkets, rent growth remains some of that land falls within the airport's Foreign Trade Zone. well above historical norms. Sales activity is generally moderate, but the submarket usually sees a few big trades occur each year.
Leasing Movers & Shakers Largest Vacancies: 3150 State Highway 161 – 646,190 sf Facilities in the East DFW Airport/Las Colinas Submarket are well-positioned to take full advantage of the tremendous population Tenant SF Building 2701 W Rochelle Rd - 494,238 sf growth in the metroplex. The submarket runs the gamut in terms of building quality and type, ranging from smaller warehouse/ Amazon 372,835 3500 S Airfield Dr 1001 Mustang Drive – 432,320 sf distribution facilities to massive, 500,000-plus-SF bombers occupied by marquee tenants, including Amazon, Samsung, and Naterra 210,550 240 Dividend Dr Beltline Distribution Center – 230,400 SF Kimberly-Clark. East DFW Airport/Las Colinas holds its fair share of third-party logistics tenants and companies involved in air Pitney Bowes 194,950 3050 State Highway 161 1000 N 28th Avenue – 223,000 sf cargo logistics. Notably, part of the submarket is designated as a Triple Freeport tax exemption zone. PIN 191,800 500 Industrial Blvd DFW Airport AmeriPac 162,500 1011 N 28th Avenue 1111 N 28th Avenue – 216,834 sf After several years of strong net absorption, averaging 2.6 million SF annually, we are anticipating this momentum to continue R-O-C- Transport Inc 126,400 500 Airline Drive into 2021. The submarket experienced 1.7 million SF of leasing activity in 20Q1. Amazon continues to increase its presence, signing AmeriPac 119,717 1000 N 28th Avenue DFW Airport a 372,835-SF lease in May. The new building is in the same area where Amazon has a 1 million-SF fulfillment center on Airfield DFW Airport
The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy thereof. The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy 6 The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. 7 Existing Inventory Vacancy Delivered Inventory Under Construction Leasing Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity Great Southwest Industrial Vacancy Great Southwest Industrial Net Absorption Construction 109,575,551 10.0% 2018 Q1 1,125 9,461,788 8.6% 431,066 1 25,536 11 4,453,264 4,354,736 2,500,000 2018 Q2 1,127 110,644,499 8,323,129 7.5% 2,207,607 2 1,068,948 9 3,384,316 2,655,448 9.0% 2018 Q3 1,128 110,691,999 6,881,100 6.2% 1,489,529 1 47,500 13 4,526,371 2,790,665 8.0% 2,000,000 Existing Inventory Vacancy Delivered Inventory Under Construction 2018 Q4 1,129 110,802,467 5,456,282 4.9% 1,535,286 1 110,468 20 Leasing6,732,635 3,058,816 7.0% Period Net Absorption 1,500,000 Under Activity Great Southwest Industrial Vacancy Great Southwest Industrial Net Absorption 2019 Q1 # Bldgs1,134 Total112,627,258 RBA Vacant4,882,919 SF Vacant % 4.3% 2,398,154# Bldg Delivered5 1,824,791# Bldgs 17 5,059,264 2,034,195 6.0% Construction 1,000,000 109,575,551 10.0% 20182019 Q1 Q2 1,1251,138 113,827,7229,461,7885,443,6098.6% 4.8% 431,066 639,774 1 25,5364 1,200,46411 4,453,26414 4,354,7364,014,225 1,033,373 5.0% 2,500,000 20182019 Q2 Q3 1,1271,144 110,644,499114,257,6708,323,1296,702,1297.5% 5.9% 2,207,607 (828,572)2 1,068,9486 429,9489 3,384,3168 2,655,4483,584,277 2,058,6879.0% 500,000 4.0% 2,000,000 20182019 Q3 Q4 1,128 110,691,999115,372,1656,881,100 6.2% 1,489,529 1 47,500 13 4,526,371 2,790,665 8.0% 1,147 6,176,129 5.4% 1,640,495 3 1,114,495 6 3,045,905 2,710,937 0 2018 Q4 1,129 110,802,467 5,456,282 4.9% 1,535,286 1 110,468 20 6,732,635 3,058,816 7.0% 3.0% 2020 Q1 1,151 117,440,390 6,302,764 5.4% 1,941,590 4 2,068,225 2 977,680 1,739,652 1,500,000 2019 Q1 1,134 112,627,258 4,882,919 4.3% 2,398,154 5 1,824,791 17 5,059,264 2,034,195 6.0% 2.0% GREAT SOUTHWEST2020 Q2 1,152 117,841,947 7,398,612 6.3% (694,291) 1 401,557GREAT2 605,391 2,073,112 SOUTHWEST 1,000,000 (500,000) 2019 Q2 1,138 113,827,722 5,443,609 4.8% 639,774 4 1,200,464 14 4,014,225 1,033,373 5.0% 1.0% 20192020 Q3 Q3 1,1441,152 114,257,670117,841,9476,702,1296,851,6225.9% 5.8% (828,572) 546,990 6 429,9480 80 3,584,2774 2,058,687875,311 1,639,435 500,000 (1,000,000) SUBMARKET 4.0%SUBMARKET0.0% 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 20192020 Q4 Q4 1,1471,153 115,372,165118,418,0706,176,1297,254,4275.4% 6.1% 1,640,495 173,318 3 1,114,4951 576,1236 3,045,9059 2,710,9371,582,341 3,170,782 3.0% 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 20200 2021 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 20202021 Q1 Q1 1,1511,153 117,440,390118,418,0706,302,7646,672,4585.4% 5.6% 1,941,590 581,969 4 2,068,2250 20 977,68011 1,739,6521,736,468 1,668,157 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2.0% (500,000) 20202021 Q2 Q2 1,1521,153 117,841,947118,418,0707,398,6124,405,2596.3% 3.7% (694,291)2,267,199 1 401,5570 20 605,39114 2,073,1122,309,193 3,592,661 1.0% 2020 Q3 1,152 117,841,947 6,851,622 5.8% 546,990 0 0 4 875,311 1,639,435 (1,000,000) 0.0% Great Southwest Overview 2020 Q4 1,153 118,418,070 7,254,427 6.1% 173,318 1 576,123 9 1,582,341 3,170,782 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2018 2018 2018 2018 2019Great2019 2019 Southwest2019 2020 2020 2020 Industrial2020 2021 2021 Leasing Activity Q1 Q2 Q3 Q4 Q1 Q2 Q3GreatQ4 Q1 SouthwestQ2 Q3 Q4 Q1 IndustrialQ2 Construction Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 The Arlington submarket is a secondary Existing Inventory 2021 Q1 Vacancy1,153 118,418,070 6,672,458Delivered Inventory5.6% Under581,969 Construction 0 0 11 1,736,468 1,668,157 Absorption vs Previous Qtr vs 12 Months Ago Leasing 5,000,000 distribution node between Fort WorthPeriod and Dallas. 2021 Q2 1,153 118,418,070Net Absorption4,405,259 3.7% 2,267,199 Under 0 0 14 2,309,193 3,592,661 # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity Great Southwest Industrial Vacancy Great Southwest Industrial Net Absorption 40,000,000 While industrial inventory is scattered throughout 2,267,199 581,969 -694,291Construction 2018 Q1 1,125 109,575,551 9,461,788 8.6% 431,066 1 25,536 11 4,453,264 4,354,736 10.0% 4,500,000 the submarket, there is a concentration of Vacancy vs Previous Qtr vs 12 Months Ago Great Southwest2,500,000 Industrial Leasing Activity Great Southwest35,000,000 Industrial Construction 2018 Q2 1,127 110,644,499 8,323,129 7.5% 2,207,607 2 1,068,948 9 3,384,316 2,655,448 9.0% higher-quality stock built at the intersection of 4,000,000 2018 Q3 1,128 110,691,999 6,881,100Absorption3.7% 6.2% 1,489,529vs Previous5.6% Qtr 1 47,500vs 12 Months13 Ago6.3%4,526,371 2,790,665 8.0% 5,000,000 2,000,000 I-20 and State Highway 360, which is roughly 40,000,000 30,000,000 2018 Q4 1,129 110,802,467 5,456,2822,267,199U/C SF4.9% 1,535,286581,969 1 110,468 -694,29120 6,732,635 3,058,816 7.0% 1,500,000 20 miles from Dallas, Fort Worth, and the D/FW vs Previous Qtr vs 12 Months Ago 4,500,000 3,500,000 2019 Q1 1,134 112,627,258 4,882,919 4.3% 2,398,154 5 1,824,791 17 5,059,264 2,034,195 6.0% 35,000,000 25,000,000 Vacancy2,309,193 vs Previous1,736,468 Qtr vs 12 Months 605,391Ago 1,000,000 International Airport. About 11.6 million2019 Q2 SF, or1,138 113,827,722 5,443,609 4.8% 639,774 4 1,200,464 14 4,014,225 1,033,373 3,000,000 3.7% 5.6% 6.3% 5.0% 4,000,000 45%, of the submarket's 25-million-SF2019 Q3inventory,1,144 114,257,670 6,702,129Delivered 5.9%SF (828,572)vs Previous6 Qtr 429,948 vs8 12 Months3,584,277 Ago 2,058,687 500,000 30,000,000 20,000,000 U/C SF 4.0% has been delivered since 2000. Over2019 the Q4 last 1,147 115,372,165 6,176,129 5.4% 1,640,495vs Previous Qtr 3 1,114,495vs 12 Months6 Ago 3,045,905 2,710,937 3,500,000 2,500,000 0 0 401,557 3.0% 0 25,000,000 decade, most new products rest along2020 Q1the 1,151 117,440,390 6,302,7642,309,193 5.4% 1,941,5901,736,468 4 2,068,225 605,3912 977,680 1,739,652 15,000,000 Leasing Activity vs Previous Qtr vs 12 Months Ago 2.0% 3,000,000 2,000,000 intersection of 360 and I-20. Vacancy2020 levels Q2 spiked1,152 117,841,947 7,398,612Delivered SF6.3% (694,291)vs Previous Qtr 1 401,557vs 12 Months2 Ago 605,391 2,073,112 (500,000) 20,000,000 1.0% 2,500,000 10,000,000 2020 Q3 1,152 117,841,947 6,851,6223,592,6610 5.8% 546,990 01,668,1570 0 401,5574 2,073,112875,311 1,639,435 (1,000,000) due to a series of large deliveries in late 2019. Of 0.0% 1,500,000 2020 Q4 1,153 118,418,070 7,254,427 6.1% 173,318 1 576,123 9 1,582,341 3,170,782 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 15,000,000 note, 400,000 SF entered the market at Cooper Leasing Activity vs Previous Qtr vs 12 Months Ago 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 20202,000,0002020 2021 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 5,000,000 2021 Q1 1,153 118,418,070 6,672,458 5.6% 581,969 0 0 11 1,736,468 1,668,157 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 1,000,000 and I-20. As of the end of 2020, there were eight 3,592,661 1,668,157 2,073,112 10,000,000 118,418,070 Great Southwest Vital Statistics 1,500,000 properties with 100,000 SF of space2021 available Q2 1,153 for 4,405,259 3.7% 2,267,199 0 0 14 2,309,193 3,592,661 0 500,000 5,000,000 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 3,000,000 10.0% 1,000,000 lease. Vacancies are expected to normalize in the Great Southwest Vital Statistics Great Southwest Industrial Leasing Activity Great Southwest Industrial Construction Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 near term, with the pipeline for new buildings 9.0% 0 0 Absorption vs Previous2,500,000 Qtr vs 12 Months Ago 5,000,000 500,000 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 3,000,000 10.0% 40,000,000 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 virtually dry. Previously, vacancies were2,267,199 impacted 581,969 -694,291 8.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1Q1 Q2Q2Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 DeliveredQ4 Q1 Q2 Under Construction 2,000,000 9.0% 4,500,000 0 by large blocks of space that were deliveredVacancy in vs Previous2,500,000 Qtr vs 12 Months Ago 7.0% 2018 201835,000,0002018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 8.0% 4,000,000 Delivered Under Construction 2017 and taken by large, single-tenant users3.7% 5.6%2,000,0001,500,000 6.3% 6.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 7.0% 30,000,000 like Summit Racing Equipment (750,000U/C SF SF in vs Previous1,000,000 Qtr vs 12 Months Ago 5.0% 3,500,000 1,500,000 6.0% 25,000,000 17Q3) and UPS (1 million SF in 17Q4). Supply2,309,193 1,736,468 605,391 1,000,000500,000 5.0% 4.0% 3,000,000 Delivered SF vs Previous Qtr vs 12 Months Ago 20,000,000 has slowed dramatically in recent years. About 3.0% 2,500,000 0 0500,000 401,557 4.0% one million SF was delivered in 2019 and no 0 15,000,000 Leasing Activity 3.0% 2.0% 2,000,000 significant deliveries in 2020 and mid-2021. vs Previous(500,000) Qtr 0 vs 12 Months Ago 3,592,661 1,668,157 2,073,112 2.0% 1.0% 10,000,000 (500,000) 1.0% 1,500,000 (1,000,000) 0.0% 5,000,000 Vacancies in Lower Great Southwest have (1,000,000) 0.0% 1,000,000 Great Southwest Vital2018 Statistics2018201820182019201920192019202020202020202020212021 decreased significantly throughout the last 20182018201820182019201920192019202020202020202020212021 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 500,000 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 3,000,000 Q1 Q2 Q3 Q4 Q1 Q2 10.0%Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 decade and have leveled off in recent years, Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net Absorption 9.0% Delivered Vacant % 0 2,500,000 Net Absorption Delivered Vacant % 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 settling in at 3.7%. The submarket hasn't seen as 8.0% Delivered Under Construction 2,000,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 much new supply as neighboring Upper Great 7.0% Southwest, but deliveries have ticked1,500,000 up. Over 6.0% the last twelve months110,000 square1,000,000 feet has 5.0% 500,000 4.0% delivered, there is currently 54,000 square feet 3.0% 0 under construction. Asking rents land below the metro average, but rent growth has trended2.0% higher at almost 6% annually. the market for long, as Living Spaces agreed to take the entire facility in 18Q3. In early 2020, NorthPoint Development completed (500,000) 1.0% (1,000,000) 0.0% a 1.5 million square foot facility for Home Depot. As a result, vacancies have trended in the right direction, and are currently Upper Great Southwest is one of the largest2018 industrial201820182018 submarkets2019201920192019 in the2020 2020metroplex202020202021 and2021 is a hot spot for speculative projects. sitting at 3.7%. Occupancies have recovered from the most Q1recentQ2 Q3supplyQ4 Q1 wave,Q2 Q3 andQ4 occupancyQ1 Q2 Q3 Q4is trendingQ1 Q2 below the metro average, even after the most recent supply wave. However, withNet Absorption more than 830,000Delivered SF underway,Vacant much % of which is spec, the vacancy rate may increase in the short term. Annual rent growth is robust 6.3%, Ranking among the top submarkets for rent growth in the Construction in the Upper Great Southwest Submarket has ramped up in recent years. With 12.8 million SF of space delivering metroplex. since 2014, accounting for about 20% of the total inventory, making this submarket one of the most active in terms of new construction. Unlike submarkets in South Dallas and North Fort Worth, where massive single-tenant facilities make up the bulk of new supply, new construction in the Upper Great Southwest generally consists of multi-tenant properties that target tenants Leasing seeking 100,000–300,000 SF. In fact, of the roughly 40 assets that have come to market in the last decade, more than two-thirds After record levels of speculative supply caused fundamentals to weaken in 2016 and 2017, leasing on new assets has picked up. are multi-tenant facilities. While not necessarily feeling the effects of land constraints like the northern airport submarkets, it's Absorption was boosted by 3PLs like UPS, which moved into more than 1 million SF at the Arlington Commerce Center in 2017, more challenging to build massive, 500,000-SF distribution centers here than in the South Dallas submarkets. The average and FedEx, which took 365,000 SF at Liberty Park GSW South in 2018. Also, telecom logistics firm Tellworks Communications size of new projects (delivered since 2010) is about 250,000 SF, which is significantly smaller than the average in other supply- took 723,000 SF at a newly built facility at Park 20/360 in 18Q1, and Rent the Runway signed on for 320,000 SF at a new build in heavy submarkets like SW Dallas/US 67 (more than 400,000 SF) and SE Dallas/I-45 (more than 500,000 SF). With suitable tracts Cooper I-20 in 18Q2. of vacant land becoming increasingly scarce, developers are starting to look to redevelopment opportunities. For example, developer Bandera Ventures turned the former Great Southwest Golf Club in Grand Prairie into the GSW 360 Global Logistics Supply and absorption have moderated in recent quarters, compared to the supply wave in 2016 and 2017. A handful of spec Park. projects completed in 2019, though these buildings have smaller footprints, so the impact to vacancy is muted. For example, construction wrapped up on a 401,000 SF speculative warehouse along Cooper I-20, led by Flaherty Development. Still, vacancy Great Southwest rates have drifted above the metro norm in recent quarters. Movers & Shakers Largest Vacancies: Great Southwest With 42.9 million SF, Lower Great Southwest is one of the largest industrial submarkets in the metroplex. But despite its location Tenant SF Building 360 Commerce Center II – 234,000 sf and transportation advantages, the submarket was historically plagued with structurally high vacancies and low asking rents. Comptree 576,123 1113 W Oakdale Rd 2400 Centennial Drive – 186,344 sf Tri-state 492,500 3800 E Avenue E 102 E Interstate 20 – 199,920 sf The last decade has been different, though, as demand for space with access to both sides of the metroplex and to Dallas/Fort Great Southwest Worth International Airport has helped vacancies compress to unprecedented lows. Occupancies took a hit in early 2018 when Averitt Express 401,557 949 W Oakdale Rd Restoration Hardware moved out of 858,000 SF at the 161 Pioneer Distribution Center. However, the building didn't remain on Dart Warehouse Corp 279,906 1025-1035 Post & Paddock
The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy thereof. The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy 8 The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. 9 Existing Inventory Vacancy Delivered Inventory Under Construction Leasing Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity North Fort Worth Industrial Vacancy North Fort Worth Industrial Net Absorption Construction 2018 Q1 14.0% 692 90,798,977 3,281,343 3.6% 1,087,626 5 137,100 23 6,070,086 2,072,336 3,000,000 2018 Q2 699 92,617,065 4,036,668 4.4% 1,062,763 7 1,818,088 22 7,254,010 674,719 12.0% 2018 Q3 706 94,729,596 6,235,398 6.6% (86,199) 7 2,112,531 19 5,718,449 892,528 2,500,000 Existing Inventory Vacancy Delivered Inventory Under Construction 2018 Q4 713 96,880,723 7,625,148 7.9% 665,477 6 2,055,227 17 Leasing5,571,222 667,821 10.0% Period Net Absorption Under 2,000,000 # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity North Fort Worth Industrial Vacancy North Fort Worth Industrial Net Absorption 2019 Q1 718 98,937,239 7,818,481 7.9% 1,863,183 5 2,056,516Construction22 8,180,645 2,198,966 8.0% 1,500,000 2018 Q1 14.0% 2019 Q2 692722 90,798,97799,420,2393,281,3437,413,6513.6% 7.5%1,087,626 876,9245 137,1004 483,00023 6,070,08631 2,072,33610,609,670 767,963 3,000,000 2018 Q2 699 92,617,065 4,036,668 4.4% 1,062,763 7 1,818,088 22 7,254,010 674,719 2019 Q3 725 99,504,534 5,715,318 5.7% 1,782,628 3 84,295 38 12,320,240 1,959,05512.0% 6.0% 1,000,000 2018 Q3 706 94,729,596 6,235,398 6.6% (86,199) 7 2,112,531 19 5,718,449 892,528 2,500,000 2019 Q4 736 103,984,346 7,566,030 7.3% 2,629,100 11 4,479,812 35 11,105,216 803,193 2018 Q4 713 96,880,723 7,625,148 7.9% 665,477 6 2,055,227 17 5,571,222 667,821 10.0% 4.0% 2,000,000 500,000 NORTH FORT2020 Q1 750 107,111,371 WORTH8,805,870 8.2% 1,887,185 14 3,127,025NORTH34 10,756,219 3,848,415 FORT WORTH 2019 Q1 718 98,937,239 7,818,481 7.9% 1,863,183 5 2,056,516 22 8,180,645 2,198,966 8.0% 1,500,000 0 20192020 Q2 Q2 722760 99,420,239110,310,3097,413,65111,617,1137.5% 10.5%876,924 387,6954 483,00010 3,198,93831 10,609,67026 767,9638,392,576 3,160,785 2.0% SUBMARKET20192020 Q3 Q3 725766 99,504,534110,829,1865,715,31810,982,1765.7% 9.9%1,782,628 1,153,8143 84,2956 518,87738 12,320,24026 1,959,05510,272,542 907,3826.0%SUBMARKET 1,000,000 (500,000) 0.0% 20192020 Q4 Q4 736771 103,984,346113,809,9647,566,03012,397,1187.3% 10.9%2,629,100 1,565,83611 4,479,8125 2,980,77835 11,105,21630 803,1938,701,426 2,765,728 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 4.0% 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020500,0002020 2020 2021 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 20202021 Q1 Q1 750776 107,111,371115,790,5498,805,87013,329,0858.2% 11.5%1,887,185 1,048,61814 3,127,0255 1,980,58534 10,756,21928 3,848,4157,292,415 3,181,959 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 0 20202021 Q2 Q2 760787 110,310,309117,529,92011,617,11313,003,41110.5% 11.1%387,695 2,065,04510 3,198,93811 1,739,37126 8,392,57624 3,160,7859,201,020 3,425,9942.0% 2020 Q3 766 110,829,186 10,982,176 9.9% 1,153,814 6 518,877 26 10,272,542 907,382 (500,000) 0.0% 2020 Q4 771 113,809,964 12,397,118 10.9% 1,565,836 5 2,980,778 30 8,701,426 2,765,728 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2018 2018 2018 2018 2019 2019North2019 2019 Fort2020 Worth2020 2020 Industrial2020 2021 2021 Leasing ActivityQ1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 NorthQ1 Q2 FortQ3 Q4 WorthQ1 Q2 Industrial Construction North Fort Worth Overview 2021 Q1 776 115,790,549 13,329,085 11.5% 1,048,618 5 1,980,585 28 7,292,415 3,181,959 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Existing Inventory Vacancy Delivered Inventory Under Construction Leasing The NE Tarrant/Alliance Submarket is Period 2021 Q2Absorption787 117,529,920Netvs Absorption Previous13,003,411 Qtr 11.1% vs2,065,045 12 Months AgoUnder11 1,739,371 24 9,201,020 3,425,994 4,500,000 North Fort Worth Industrial Net Absorption # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity North Fort Worth Industrial Vacancy 40,000,000 dominated by Hillwood's 26,000-acre 2,065,045 1,048,618 387,695Construction 2018 Q1 14.0% master-planned AllianceTexas development. 692 90,798,977 3,281,343 3.6% 1,087,626 5 137,100 23 6,070,086 2,072,336 North Fort 4,000,000Worth3,000,000 Industrial Leasing Activity North Fort Worth Industrial Construction 2018 Q2 699 92,617,065Vacancy4,036,668 4.4% vs1,062,763 Previous Qtr7 1,818,088vs 12 Months22 7,254,010Ago 674,719 35,000,000 12.0% Alliance has emerged as one of Dallas-Fort2018 Q3 706 94,729,596Absorption6,235,398 6.6% vs Previous(86,199) Qtr 7 vs 2,112,53112 Months Ago19 5,718,449 892,528 4,500,000 2,500,000 11.1% 11.5% 10.5% 3,500,000 40,000,000 30,000,000 Worth's primary industrial nodes, featuring2018 Q4 713 96,880,7232,065,0457,625,148 7.9% 1,048,618665,477 6 2,055,227387,695 17 5,571,222 667,821 10.0% 2,000,000 U/C SF vs Previous Qtr vs 12 Months Ago 4,000,000 some of North Texas's newest, most efficient2019 Q1 718 98,937,239 7,818,481 7.9% 1,863,183 5 2,056,516 22 8,180,645 2,198,966 35,000,000 Vacancy vs Previous Qtr vs 12 Months Ago 8.0% 3,000,0001,500,000 25,000,000 2019 Q2 722 99,420,2399,201,0207,413,651 7.5% 876,9247,292,415 4 483,000 8,392,57631 10,609,670 767,963 warehouse product. The submarket is also 11.1% 11.5% 10.5% 3,500,000 2019 Q3 725 99,504,534Delivered5,715,318 SF 5.7% 1,782,628 3 84,295 38 12,320,240 1,959,055 6.0% 2,500,0001,000,000 30,000,000 home to Fort Worth Alliance Airport, which is U/C SF vs Previousvs Previous Qtr Qtr vs 12 Monthsvs 12 Ago Months Ago 20,000,000 2019 Q4 736 103,984,346 7,566,030 7.3% 2,629,100 11 4,479,812 35 11,105,216 803,193 3,000,000 dedicated exclusively to air cargo. The success 1,739,371 1,980,585 3,198,938 4.0% 500,000 25,000,000 2020 Q1 750 107,111,3719,201,0208,805,870 8.2% 7,292,4151,887,185 14 3,127,0258,392,576 34 10,756,219 3,848,415 2,000,000 15,000,000 0 of the airport spurred an expansion of2020 its Q2 760 110,310,309LeasingDelivered11,617,113 Activity SF 10.5% vs Previousvs387,695 Previous Qtr Qtr10 vs 3,198,93812 Monthsvs 12 Ago Months26 8,392,576Ago 3,160,785 2.0% 2,500,000 20,000,000 runway, which was completed in early2020 2018. Q3 766 110,829,186 10,982,176 9.9% 1,153,814 6 518,877 26 10,272,542 907,382 (500,000) 10,000,000 1,739,3713,425,994 1,980,5853,181,959 3,198,938 3,160,785 0.0% 1,500,000 2020 Q4 771 113,809,964 12,397,118 10.9% 1,565,836 5 2,980,778 30 8,701,426 2,765,728 2,000,000 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 202115,000,0002021 The extension enables long-haul flights to Leasing Activity vs Previous Qtr vs 12 Months Ago 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2021 Q1 776 115,790,549 13,329,085 11.5% 1,048,618 5 1,980,585 28 7,292,415 3,181,959 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 5,000,000 take off fully fueled under almost any weather 3,425,994 3,181,959 3,160,785 1,500,000 1,000,000 10,000,000 2021 Q2 787 117,529,920 13,003,411 11.1% 2,065,045 11 1,739,371 24 9,201,020 3,425,994 conditions, increasing air cargo capacity at North Fort Worth Vital Statistics 1,000,000 500,000 5,000,000 0 the airport. Not far from the airport is another 5,000,000 North Fort Worth Vital Statistics 14.0% North Fort Worth Industrial Leasing Activity North Fort Worth Industrial Construction 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 primary demand driver, the Alliance GlobalAbsorption vs Previous Qtr vs 12 Months Ago 4,500,000 500,000 5,000,000 14.0% 12.0% 40,000,0000 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 Logistics Hub (built around the BNSF Alliance2,065,045 4,000,0001,048,618 387,695 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020Q1 Q22021Q32021Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 4,000,000 Vacancy 12.0% 0 35,000,000 Delivered Under Construction Intermodal Facility), which serves as one of 4,000,000vs Previous Qtr vs 12 Months Ago 10.0% 2018 2018 2018 2018 2019 2019Q12019Q22019 Q32020 2020Q4 2020Q1 2020Q2 2021Q32021Q4 Q1 Q2 Q3 Q4 Q1 Q2 3,000,000 Delivered Under Construction the nation's premier inland ports. 11.1% 11.5% 10.5% 10.0% 3,500,000 Q1 Q2 Q3 30,000,000Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 U/C SF 3,000,000vs Previous Qtr vs 12 Months Ago 8.0% 3,000,000 25,000,000 9,201,020 2,000,0007,292,415 8,392,576 8.0% 2,000,000 6.0% The submarket has been one of the mostDelivered SF vs Previous Qtr vs 12 Months Ago 2,500,000 20,000,000 1,000,000 6.0% active in the metroplex in terms of new 1,739,371 1,000,0001,980,585 3,198,938 4.0% 4.0% 2,000,000 15,000,000 supply. Since 2010, developers have Leasing Activity vs Previous Qtr vs 12 Months Ago 0 10,000,000 added over 30 million SF of new space, 3,425,994 3,181,9590 3,160,785 2.0% 2.0% 1,500,000 1,000,000 5,000,000 encompassing 50% of the market's industrial North(1,000,000)(1,000,000) Fort Worth Vital Statistics 0.0% 0.0% construction during this period. With 2018201820182018201820182018201820192019201920192019201920192020201920202020202020202020202120202021202020212021 500,000 0 5,000,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q414.0%Q1 Q2 Q3 Q4 Q1 Q2 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 7.0 million SF of development currently Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Net Absorption Delivered12.0% Vacant % 0 4,000,000 Net Absorption Delivered Vacant % 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 underway, the area is showing no signs of Delivered Under Construction 10.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 slowing down. In the past 12 months, the3,000,000 8.0% submarket has experienced 4.7 million2,000,000 SF 6.0% of net positive absorption. One key deal1,000,000 was Walmart taking 1 million SF of Westport 11, 4.0% 0 which Hillwood developed. Alliance Westport encompasses 7.4 million SF of developed industrial2.0% space with over 7 million SF (1,000,000) 0.0% planned for future build-out. Other tenants in the2018 park20182018 include20182019 FedEx,20192019 2019Wabtec,20202020 and2020 2020Kraft.20212021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Meacham Field/Fossil Creek is a large, dynamic industrialNet Absorption submarketDelivered north of Fort Worth.Vacant % The submarket has added a great deal of modern, efficient product in recent building cycles, and close to half of its total big-box inventory has been delivered since 2000. Movers & Shakers Largest Vacancies: Most of the submarket's big-box inventory is located either just east of the Fort Worth Meacham International Airport or at the Tenant SF Building Alliance Center North 7 – 810,908 sf intersection of I-35W and I-820. The proximity to the airport and highways is enticing developers to add more space. A series of Walmart Distribution Center 1,002,536 14700 Blue Mound Road Speedway Logistics Crossing Bldg 3 – 795,780 sf supply spikes in the submarket continues to place pressure on vacancy rates. At 5.4% vacancies are trending near the rest of the Henry Schein Inc 810,908 3701 Litsey Road Northlink A – 754,473 sf metroplex. Meacham Field/Fossil Creek is one of the more liquid submarkets in the metroplex, as roughly 10% of the submarket's Mainfreight 460,248 17801 I-35W Frontage Rd Synergy Crossing building 400 – 707,000 sf inventory has changed hands on average annually in recent years. Medifast 427,908 4251 Northern Cross Blvd Volkswagon 370,000 230 S Intermodal Pky Leasing IDC Logistics 351,194 2773 Highway 114 NE Tarrant/Alliance serves as a significant super-regional distribution hub in the northwestern part of Dallas-Fort Worth. While Quorum International 305,255 401-441 Railhead Road other developers are active in the submarket, it is dominated by Hillwood, which owns and continues to develop a substantial Allen Distribution 200,000 400 Patriot Parkway portion of the land here. Over the years, Hillwood has transformed this former prairie into a bustling mixed-use development, including residential, retail, office, and industrial components. In the first quarter, vacancy rates drifted higher from supply-side pressure to their highest point since 2016 and have remained elevated throughout the year. The current vacancy rate is 13.3% with 11.3 million SF available. North Fort Worth
Meacham Field/Fossil Creek is located between in-town Fort Worth and Alliance, a geographic advantage that has enabled vacancy rates to trend below the rest of the metro since 2017-2019. Deliveries put upward pressure on vacancies in 2020. The vacancy rate North Fort Worth is currently 5.4% with 4.6 million SF available. The area has1.7 million SF under construction. North Fort Worth
The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy thereof. The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy 10 The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. 11 Existing Inventory Vacancy Delivered Inventory Under Construction Leasing Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity Northeast Dallas Industrial Vacancy Northeast Dalllas Industrial Net Absorption Construction 2018 Q1 109,530,978 9.0% 1,523 6,593,922 6.0% 839,447 6 249,587 12 1,957,552 1,509,814 1,800,000 2018 Q2 1,524 109,581,304 6,626,050 6.0% 18,198 1 50,326 14 2,593,042 2,573,188 8.0% 1,600,000 2018 Q3 1,530 110,605,612 6,343,014 5.7% 1,307,344 6 1,024,308 14 2,352,000 2,036,901 1,400,000 Existing Inventory Vacancy Delivered Inventory Under Construction 7.0% 2018 Q4 1,536 111,506,930 6,543,514 5.9% 700,818 6 901,318 19 Leasing2,406,486 1,092,410 1,200,000 Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity Northeast6.0% Dallas Industrial Vacancy Northeast Dalllas Industrial Net Absorption 2019 Q1 1,543 112,307,291 7,208,805 6.4% 187,915 7 800,361 Construction19 2,298,135 1,506,575 1,000,000 2018 Q1 109,530,978 9.0% 5.0% 2019 Q2 1,5231,548 113,133,6926,593,9227,153,0366.0% 6.3% 839,447 851,120 6 249,5874 795,35112 1,957,55219 1,509,8142,050,075 1,316,485 1,800,000 800,000 2018 Q2 1,524 109,581,304 6,626,050 6.0% 18,198 1 50,326 14 2,593,042 2,573,188 600,000 2019 Q3 1,552 113,404,613 7,769,709 6.9% (345,752) 4 270,921 17 2,134,225 2,446,1548.0% 4.0% 1,600,000 2018 Q3 1,530 110,605,612 6,343,014 5.7% 1,307,344 6 1,024,308 14 2,352,000 2,036,901 1,400,000 400,000 NORTHEAST2019 Q4 1,555 DALLAS113,685,113 8,117,599 7.1% (67,390) 3 280,500NORTHEAST18 2,407,121 2,525,5717.0% 3.0% DALLAS 2018 Q4 1,536 111,506,930 6,543,514 5.9% 700,818 6 901,318 19 2,406,486 1,092,410 1,200,000 200,000 2020 Q1 1,556 113,922,113 8,151,793 7.2% 202,806 1 237,000 24 2,958,731 1,371,5886.0% 2019 Q1 1,543 112,307,291 7,208,805 6.4% 187,915 7 800,361 19 2,298,135 1,506,575 2.0% 1,000,000 0 2020 Q2 1,563 114,676,370 7,507,651 6.5% 1,398,399 7 754,257 30 4,368,817 1,497,4615.0% 800,000 SUBMARKET2019 Q2 1,548 113,133,692 7,153,036 6.3% 851,120 4 795,351 19 2,050,075 1,316,485 SUBMARKET1.0% (200,000) 600,000 20202019 Q3Q3 1,5521,569 113,404,613115,670,6927,769,7097,882,0086.9% 6.8% (345,752) 619,965 4 270,9216 994,32217 2,134,22533 2,446,1544,818,475 2,002,0334.0% (400,000) 0.0% 400,000 20202019 Q4Q4 1,5551,576 113,685,113116,053,7658,117,5997,955,5787.1% 6.9% (67,390) 309,503 3 280,5007 383,07318 2,407,12130 2,525,5714,666,895 3,550,5133.0% 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020200,0002020 2020 2021 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2020 Q1 1,556 113,922,113 8,151,793 7.2% 202,806 1 237,000 24 2,958,731 1,371,588 2021 Q1 1,589 117,955,448 9,363,182 7.9% 494,079 13 1,901,683 18 2,839,199 1,952,0522.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 0 Q4 Q1 Q2 2020 Q2 1,563 114,676,370 7,507,651 6.5% 1,398,399 7 754,257 30 4,368,817 1,497,461 2021 Q2 1,594 118,565,219 8,359,608 7.1% 1,613,345 5 609,771 15 2,884,428 1,900,5301.0% (200,000) 2020 Q3 1,569 115,670,692 7,882,008 6.8% 619,965 6 994,322 33 4,818,475 2,002,033 (400,000) 0.0% 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 Northeast Dallas Overview Existing Inventory Vacancy2020 Q4 1,576 116,053,765Delivered7,955,578 Inventory 6.9%Under Construction309,503 7 383,073 30 4,666,895 3,550,513 Leasing 2018 2018 2018 2018 2019 2019Northeast2019 2019 2020 Dalllas2020 2020 2020Industrial2021 2021 Leasing ActivityQ1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 NortheastQ1 Q2 Q3 Q4 DalllasQ1 Q2 Industrial Construction As one of Dallas' major industrialPeriod nodes, NE 2021 Q1 1,589Net Absorption117,955,448 9,363,182 7.9% 494,079Under 13 1,901,683 18 Northeast2,839,199 Dallas1,952,052 Industrial Vacancy Q1 Q2 Q3 Q4 Q1 NortheastQ2 Q3 Q4 DalllasQ1 Q2 IndustrialQ3 Q4 NetQ1 AbsorptionQ2 # Bldgs Total RBA Vacant SF VacantAbsorption % # Bldg Delivered # Bldgs Activity Dallas/Garland contains a deep pool of diverse 2021 Q2 1,594 118,565,219vs Previous8,359,608 Qtr 7.1% vs1,613,345 Construction12 Months Ago 5 609,771 15 2,884,428 1,900,530 4,000,000 2018 Q1 1,523 109,530,978 6,593,922 6.0% 839,447 6 249,587 12 1,957,552 1,509,814 9.0% 40,000,000 inventory. The submarket comprises a mix of '80s- 1,613,345 494,079 1,398,399 1,800,000 2018 Q2 1,524 109,581,304 6,626,050 6.0% 18,198 1 50,326 14 2,593,042 2,573,188 8.0% 1,600,000 and '90s-built multi-tenant product, in addition to Vacancy Northeast 3,500,000Dalllas Industrial Leasing Activity Northeast Dalllas Industrial35,000,000 Construction 2018 Q3 1,530 110,605,612 6,343,014 5.7% 1,307,344 vs Previous6 1,024,308 Qtr 14 vs 122,352,000 Months Ago2,036,901 7.0% 1,400,000 newer, single-tenant buildings2018 Q4 with1,536 clear heights111,506,930 6,543,514 Absorption5.9% 700,818 6 901,318 19 2,406,486 1,092,410 1,200,000 7.1% vs Previous7.9% Qtr vs 12 Months Ago6.5% 6.0% 4,000,000 30,000,000 3,000,0001,000,000 40,000,000 and dock configurations 2019suitable Q1 for1,543 modern112,307,291 7,208,805 1,613,3456.4%U/C SF 187,915 494,0797 800,361 191,398,3992,298,135 1,506,575 vs Previous Qtr vs 12 Months Ago 5.0% 800,000 2019 Q2 1,548 113,133,692 7,153,036 6.3% 851,120 4 795,351 19 2,050,075 1,316,485 3,500,000 25,000,000 distribution. Since 2010, the submarket has Vacancy vs Previous Qtr vs 12 Months Ago 600,000 35,000,000 2019 Q3 1,552 113,404,613 7,769,709 2,884,4286.9% (345,752) 2,839,1994 270,921 17 2,134,2254,368,817 2,446,154 4.0% 2,500,000 added 7.8M SF of new space or 14% of the total 7.1% 7.9% 6.5% 400,000 2019 Q4 1,555 113,685,113 8,117,599 Delivered7.1% SF(67,390) 3 280,500 18 2,407,121 2,525,571 3.0% 3,000,000 30,000,000 vs Previous Qtr vs 12 Months Ago 200,000 20,000,000 inventory. Fundamentals 2020in NE Q1 Dallas/Garland1,556 113,922,113 8,151,793 7.2%U/C SF 202,806 vs Previous1 Qtr 237,000 vs 1224 Months2,958,731 Ago 1,371,588 2,000,000 609,771 1,901,683 754,257 2.0% 0 25,000,000 are on firm footing, with2020 a vacancy Q2 1,563 rate of114,676,370 3.9% 7,507,651 2,884,4286.5% 1,398,399 2,839,1997 754,257 304,368,8174,368,817 1,497,461 2,500,000 15,000,000 Leasing Activity vs Previous Qtr vs 12 Months Ago 1.0% (200,000) and trending below the submarket's2020 Q3 1,569 average115,670,692 over 7,882,008 Delivered6.8% SF 619,965 vs Previous6 Qtr 994,322 vs 1233 Months4,818,475 Ago 2,002,033 1,500,000(400,000) 20,000,000 0.0% 2020 Q4 1,576 116,053,765 7,955,578 1,900,5306.9% 309,503 1,952,0527 383,073 30 4,666,8951,497,461 3,550,513 2,000,000 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 10,000,000 the last decade. Despite near-record supply levels 609,771 1,901,683 754,257 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2021 Q1 1,589 117,955,448 9,363,182 7.9% 494,079 13 1,901,683 18 2,839,199 1,952,052 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 15,000,000 over the past few years, vacancies have hardly Leasing Activity vs Previous Qtr vs 12 Months Ago 1,000,000 5,000,000 2021 Q2 1,594 118,565,219 8,359,608 7.1% 1,613,345 5 609,771 15 2,884,428 1,900,530 1,500,000 budged. Furthermore, leasing on new and under- 1,900,530 Northeast1,952,052 Dallas Vital1,497,461 Statistics 10,000,000 0 construction inventory has been strong, which 1,000,000 500,000 2,500,000 9.0% Northeast Dalllas Industrial Leasing Activity Northeast Dalllas Industrial Construction 5,000,000 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 should keep vacancies in checkAbsorption in the near term.vs Previous Qtr vs 12 Months AgoNortheast Dallas Vital Statistics 4,000,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 8.0% 500,000 40,000,000 0 0 1,613,345 494,079 2,000,0002,500,000 1,398,399 9.0% 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 20202018 20182021201820212018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 7.0% 3,500,000 Vacancy vs Previous Qtr vs 12 Months Ago 35,000,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 DeliveredQ1 Q2 Under Construction Richardson, home to the Telecom Corridor, serves 8.0% 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 1,500,0002,000,000 6.0% as a primary suburban office submarket7.1% in Dallas.7.9% 6.5% 2018 2018 201830,000,0002018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 7.0% 3,000,000 Delivered Under Construction U/C SF vs Previous Qtr vs 12 Months Ago 5.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 While the submarket is not much of a warehouse/ 1,500,000 6.0% 25,000,000 2,884,428 2,839,199 1,000,000 4,368,817 2,500,000 distribution node, it does contain an abundance of 5.0% 4.0% Delivered SF vs Previous Qtr 1,000,000vs 12 Months Ago 20,000,000 500,000 3.0% 2,000,000 specialized industrial and flex609,771 space. The majority1,901,683 754,257 4.0% 15,000,000 of the submarket's industrialLeasing inventory Activity rests nearvs Previous Qtr 500,000vs 12 Months Ago 3.0% 2.0% 0 1,500,000 Arapaho Road and the North 1,900,530Central Expressway.1,952,052 1,497,461 2.0% 1.0% 10,000,000 0 Data centers have accounted for virtually all new (500,000) 1.0% 0.0% 1,000,000 5,000,000 Northeast Dallas Vital Statistics construction since 2010. Still, a few speculative (500,000) 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 20210.0%2021 500,000 0 2,500,000 2018Q12018Q22018Q32018Q420199.0%2019Q1 2019Q2 2019Q32020Q42020Q12020Q22020 2021Q3 2021Q4 Q1 Q2 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 non-data center projects have been completed in Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q18.0%Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 0 2,000,000 Net Absorption Delivered Vacant % the last two years. Due to the high concentration Net Absorption 7.0% Delivered Vacant % 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Delivered Under Construction of flex space, the average1,500,000 rents are some of the 6.0% 5.0% highest in the metroplex.1,000,000 Vacancies are trending above the metro average, but large blocks of 4.0% space are rare. There are few500,000 vacant tracts of 3.0% 2.0% construction in Richardson is non-existent, but a handful of smaller spec deals opened in early 2019, causing vacancies to rise. 0 land in Richardson, and most are zoned for residential or office use. Therefore, large-scale1.0% spec projects like those near the D/FW Four facilities, ranging from 88,000 to 136,000 SF, were delivered completely vacant at Jackson-Shaw's Parc NorthEast. As of mid Airport, in South Dallas, or(500,000) North Fort Worth, are unlikely to emerge in Richardson. 0.0% -2021, the project was 20% vacant. In April of this year, Redaway signed a 21,100 SF lease in 990 Security Row. 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Plano is often overlooked as an industrialNet Absorption hub, as most ofDelivered the area's growthVacant is %concentrated in the office, retail, and residential Healthy demand and a lack of speculative supply, vacancy rates have hovered near or below the metro since 2014. However, sectors. However, this submarket does contain significant industrial inventory, most of which rests in the northeast corner a series of deliveries have pushed vacancy rates higher in 2020. The vacancy rate has begun to decline in early 2021. Since of the North Central Expressway and President George Bush Turnpike. Plano's location in the heart of the affluent northern those properties were delivered, the vacancy rate has drifted near or below the rest of the metroplex. In the long run, the Dallas suburbs also makes it ideal for tenants seeking last-mile distribution space. Plano's leasing activity remains strong, with Plano Submarket stands to benefit from the continuing emergence of e-commerce and, more specifically, last-mile distribution vacancies trending below the rest of the metroplex in recent quarters. The vacancy rate has declined since the run-up in early operations. Due to its proximity to some of the most affluent and fastest-growing suburbs in the metroplex. 2020, largely due to several significant deliveries. Due to rising land costs, rents are some of the highest found in the metroplex, and rent growth has performed well over the last decade. Plano industrial has been heavily traded over the previous decade, with inventory turnover routinely eclipsing 10% annually.
Leasing Movers & Shakers Largest Vacancies: The tenant base in NE Dallas/Garland comprises a mix of consumer packaged goods firms, manufacturers, and 3PLs. A large Tenant SF Building 1455 Republic Parkway – 169,924 sf percentage are smaller/older buildings. 38% of the total inventory is larger than 200,000 SF. In 2020 there were sixty-three new/ Elements International 177,473 1475 Republic Parkway KDC Richardson Data Center – 130,000 sf direct industrial leases signed in the submarket. The largest was in the Urban District 30 Park; 1000Bulbs.com signed a 204,000 Keefe Group 105,660 3101 Marquis Drive Plano Distribution Center 2 – 110,645 sf SF lease in September. The Urban 30 District is a five-building, 979,000 SF spec project being developed by Urban Logistics and Barnett Distribution Centers 100,056 3800 Leon Rd Crow Holdings Capital. Technology provider Synnex signed a 117,000 SF lease in early 2020 at the Shiloh Business Center in Lasco Fittings 83,068 3800 Leon Road Northeast Dallas Garland. Collier Metal Specialties 80,000 3353 S Miller Park Dr Solais Lighting Group 76,000 8655 Corporate Dr Northeast Dallas Leasing dynamics in Richardson have strengthened in recent years. A supply-side-driven spike pushed vacancy rates higher recently. Until then, however, vacancies were trending lower than the metro norm since 2016. Large-scale speculative Northeast Dallas
The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy thereof. The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy 12 The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. 13 Existing Inventory Vacancy Delivered Inventory Under Construction Leasing Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity South Dallas Industrial Vacancy South Dallas Industrial Net Absorption Construction 16.0% 2018 Q1 679 92,725,162 10,683,424 11.5% (85,442) 3 1,114,380 14 8,157,514 2,233,289 3,000,000 2018 Q2 684 96,184,373 12,959,795 13.5% 1,182,840 5 3,459,211 11 5,811,631 220,647 14.0% 2018 Q3 689 99,379,798 14,047,379 14.1% 2,107,841 5 3,195,425 9 4,043,055 2,904,188 2,500,000 Existing Inventory Vacancy Delivered Inventory Under Construction 12.0% 2018 Q4 691 99,879,476 13,204,861 13.2% 1,342,196 2 499,678 8 Leasing3,613,377 1,003,191 2,000,000 Period Net Absorption Under South Dallas Industrial Net Absorption 2019 Q1 # Bldgs692 Total99,897,476 RBA Vacant13,101,107 SF Vacant % 13.1% 121,754# Bldg Delivered1 # Bldgs18,000 12 Activity4,772,513 2,307,873 South10.0% Dallas Industrial Vacancy Construction 1,500,000 16.0% 20182019 Q1 Q2 679694 92,725,162101,054,85110,683,42413,070,41111.5% 12.9%(85,442) 1,188,0713 1,114,3802 1,157,37514 8,157,51412 2,233,2893,926,138 2,476,705 8.0% 3,000,000 20182019 Q2 Q3 684696 96,184,373101,374,85112,959,79510,841,39413.5% 10.7%1,182,840 2,549,0175 3,459,2112 320,00011 5,811,63111 220,6473,807,148 1,288,75714.0% 1,000,000 2018 Q3 689 99,379,798 14,047,379 14.1% 2,107,841 5 3,195,425 9 4,043,055 2,904,188 6.0% 2,500,000 2019 Q4 700 103,034,901 10,004,992 9.7% 2,496,452 4 1,660,050 12 3,336,641 2,059,36112.0% 2018 Q4 691 99,879,476 13,204,861 13.2% 1,342,196 2 499,678 8 3,613,377 1,003,191 500,000 SOUTH2020 Q1 DALLAS705 104,730,989 9,128,368 8.7% 2,572,712 5 1,696,088 9 SOUTH1,827,857 1,980,794 DALLAS4.0% 2,000,000 10.0% 2019 Q1 692 99,897,476 13,101,107 13.1% 121,754 1 18,000 12 4,772,513 2,307,873 0 2020 Q2 706 104,931,999 9,414,823 9.0% (85,445) 1 201,010 8 1,626,847 2,337,051 2.0% 1,500,000 2019 Q2 694 101,054,851 13,070,411 12.9% 1,188,071 2 1,157,375 12 3,926,138 2,476,705 8.0% SUBMARKET20192020 Q3 Q3 696711 101,374,851106,121,54210,841,39410,350,10010.7% 9.8%2,549,017 254,266 2 320,0005 1,189,54311 3,807,1485 1,288,7571,560,664 2,832,379SUBMARKET 1,000,000 (500,000) 6.0% 0.0% 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 20192020 Q4 Q4 700712 103,034,901106,371,54210,004,9929,229,2599.7% 8.7%2,496,452 1,370,8414 1,660,0501 250,00012 3,336,6418 2,059,3614,671,853 3,365,160 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020500,0002020 2020 2021 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 20202021 Q1 Q1 705713 104,730,989106,482,5029,128,3687,402,3338.7% 7.0%2,572,712 1,937,8865 1,696,0881 110,9609 1,827,85713 1,980,7947,250,915 1,061,0874.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 0 20202021 Q2 Q2 706715 104,931,999107,655,5829,414,8237,088,8689.0% 6.6% (85,445) 1,486,5451 201,0102 1,173,0808 1,626,84714 2,337,0518,821,492 3,896,0092.0% 2020 Q3 711 106,121,542 10,350,100 9.8% 254,266 5 1,189,543 5 1,560,664 2,832,379 (500,000) 0.0% 2020 Q4 712 106,371,542 9,229,259 8.7% 1,370,841 1 250,000 8 4,671,853 3,365,160 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 South Dallas Overview 2018 2018 2018 2018 2019 2019 South2019 2019 2020Dallas2020 2020 Industrial2020 2021 2021 Leasing ActivityQ1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1SouthQ2 Q3 DallasQ4 Q1 Q2Industrial Construction Existing Inventory 2021Vacancy Q1 713 106,482,502 Delivered7,402,333 Inventory7.0% Under 1,937,886Construction 1 110,960 13 7,250,915 1,061,087 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 The SE Dallas/I-45 submarket has emerged Leasing Period Absorption Net Absorption Under # Bldgs Total RBA Vacant2021 SF Q2Vacant %715 107,655,582vs Previous#7,088,868 Bldg QtrDelivered6.6% # Bldgsvs1,486,545 12 Months AgoActivity2 1,173,080 14 8,821,492South Dallas3,896,009 Industrial Vacancy 4,500,000 South Dallas Industrial Net Absorption in recent years as a significant super-regional Construction 40,000,000 1,486,545 1,937,886 -85,445 16.0% distribution hub. The area2018 boasts Q1 excellent679 92,725,162 10,683,424 11.5% (85,442) 3 1,114,380 14 8,157,514 2,233,289 4,000,0003,000,000 2018 Q2 684 96,184,373 12,959,795 Vacancy13.5% 1,182,840 vs Previous5 3,459,211Qtr 11 vs 12 5,811,631Months Ago220,647 14.0% South Dallas Industrial Leasing Activity South Dallas Industrial35,000,000 Construction highway access, a major intermodal facility, 2,500,000 2018 Q3 689 99,379,798 14,047,379 Absorption14.1% 2,107,841 5 3,195,425 9 4,043,055 2,904,188 and a seemingly unlimited amount of flat, 6.6% vs Previous7.0% Qtr vs 12 Months Ago9.0% 12.0% 4,500,000 3,500,000 2018 Q4 691 99,879,476 13,204,861 13.2% 1,342,196 2 499,678 8 3,613,377 1,003,191 2,000,000 40,000,000 30,000,000 1,486,545U/C SF 1,937,886 -85,445 buildable land. The major 2019tenants Q1 in 692the 99,897,476 13,101,107 13.1% 121,754 vs Previous1 Qtr18,000 12 vs 12 4,772,513Months Ago2,307,873 10.0% 4,000,000 Vacancy vs Previous Qtr vs 12 Months Ago 3,000,0001,500,000 35,000,000 25,000,000 submarket include household2019 Q2 names694 like 101,054,851 13,070,411 8,821,49212.9% 1,188,071 7,250,9152 1,157,375 12 1,626,8473,926,138 2,476,705 8.0% Amazon, J.M. Smuckers, Quaker2019 Q3 Foods,696 101,374,851 10,841,394 6.6%10.7% 2,549,017 7.0% 2 320,000 119.0% 3,807,148 1,288,757 3,500,000 1,000,000 30,000,000 Delivered SF vs Previous Qtr vs 12 Months Ago 6.0% 2,500,000 20,000,000 103,034,901 U/C SF Procter & Gamble, and Whirlpool.2019 Q4 All700 of 10,004,992 9.7% 2,496,452vs Previous4 Qtr 1,660,050 vs 12 12Months Ago3,336,641 2,059,361 500,000 3,000,000 25,000,000 2020 Q1 705 104,730,989 9,128,368 8,821,4921,173,0808.7% 2,572,712 7,250,915110,9605 1,696,088 1,626,8479 201,0101,827,857 1,980,794 4.0% which boast facilities a million square feet 2,000,0000 15,000,000 2020 Q2 706 104,931,999 9,414,823Leasing9.0% Activity (85,445) 1 201,010 8 1,626,847 2,337,051 or greater. The area is largely defined by the Delivered SF vs Previousvs Previous Qtr Qtr vs 12 Monthsvs 12 Ago Months Ago 2.0% 2,500,000 20,000,000 2020 Q3 711 106,121,542 10,350,100 9.8% 254,266 5 1,189,543 5 1,560,664 2,832,379 (500,000) 1,173,0803,896,009 110,9601,061,087 201,010 2,337,051 0.0% 1,500,000 10,000,000 International Inland Port of2020 Dallas. Q4 The712 facility106,371,542 9,229,259 8.7% 1,370,841 1 250,000 8 4,671,853 3,365,160 2,000,000 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 202115,000,0002021 Leasing Activity 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 encompasses 7,500 acres 2021and Q1 5 municipalities.713 106,482,502 7,402,333 7.0% 1,937,886vs Previous1 Qtr 110,960 vs 12 13Months Ago7,250,915 1,061,087 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 5,000,000 1,500,000 1,000,000 10,000,000 in addition to direct access2021 to Q2 three major715 107,655,582 7,088,868 3,896,0096.6% 1,486,545South1,061,087 Dallas2 1,173,080 Vital Statistics2,337,05114 8,821,492 3,896,009 0 interstate highways (I-35, I-20, and I-45), the 1,000,000 500,000 5,000,000 4,000,000 South Dallas Vital Statistics 16.0% South Dallas Industrial Leasing Activity South Dallas Industrial Construction 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 Union Pacific Intermodal Terminal provides 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Absorption vs Previous Qtr3,500,000 vs 12 Months Ago 4,500,000 500,000 0 intermodal access to the Ports of Los Angeles 4,000,000 16.0% 14.0% 40,000,000 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 1,486,545 1,937,886 -85,445 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 3,000,000 4,000,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 DeliveredQ1 Q2 Under Construction and Long Beach. Vacancy vs Previous Qtr3,500,000 vs 12 Months Ago 14.0% 12.0% 0 35,000,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2,500,0003,000,000 6.6% 7.0% 9.0% 12.0% 10.0% 3,500,000 Q1 Q2 Q330,000,000Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Delivered Under Construction The SW Dallas/US 67 Submarket,U/C SF like other vs Previous Qtr2,000,0002,500,000 vs 12 Months Ago 10.0% 8.0% 3,000,000 25,000,000 South Dallas submarkets, has8,821,492 demonstrated 7,250,915 1,500,0002,000,000 1,626,847 Delivered SF 8.0% impressive growth in the past few years, as vs Previous Qtr1,500,000 vs 12 Months Ago 6.0% 2,500,000 20,000,000 1,173,080 110,960 1,000,000 201,010 6.0% the area has emerged as a super-regional 1,000,000 2,000,000 15,000,000 Leasing Activity vs Previous Qtr 500,000 vs 12 Months Ago 4.0% 500,000 4.0% distribution hub. This submarket3,896,009 has two 1,061,087 2,337,051 2.0% 1,500,000 10,000,000 00 2.0% primary industrial nodes: One is along I-20, 1,000,000 5,000,000 between US Route 67 and I-35E, and the South Dallas (500,000)Vital Statistics 0.0% 0.0% 20182018201820182018201820182018201920192019201920192019202020192020202020202020202020202021 20212020 2021 2021 500,000 0 other is along I-35E in Waxahachie.4,000,000 The lion's 16.0% 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 Q1Q1Q2Q2Q3 Q3Q4 Q4Q1 Q1Q2 Q3Q2 Q4Q3 Q1Q4Q2Q1Q3 Q2Q4 Q3Q1 Q2Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 share of large-scale construction3,500,000 over the 14.0% 0 Net Absorption Delivered Vacant % 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 3,000,000 Net Absorption Delivered Vacant % last decade has taken place near I-20. Most of 12.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Delivered Under Construction 2,500,000 10.0% the projects in the pipeline2,000,000 are located in this 8.0% corridor. Vacancies have trended1,500,000 above the 6.0% metro average over the past1,000,000 few years due to speculative construction. However,500,000 due to a 4.0% 2.0% few significant move-ins, most0 notably by Kohler (1.3 million SF) in 2018, vacancy rates are trending below the metro average. In (500,000) 0.0% early 2020, the First Industrial Realty2018 Trust2018 2018 completed2018 2019 2019 an2019 863,200/SF2019 2020 2020 spec2020 2020 building2021 2021 in the First Mountain Creek Distribution Center, located on the southeast quadrantQ1 of MountainQ2 Q3 Q4 CreekQ1 Q2 ParkwayQ3 Q4 Q1 andQ2 I-20.Q3 TheQ4 entireQ1 Q2 spec property was preleased by HD Supply. In Net Absorption Delivered Vacant % addition to more traditional industrial activity, Google has broken ground on a 250,000 SF data center. The two-story project is located on I-67 just west of Midlothian, the project delivered in early 2021.
Leasing The SE Dallas/I-45 submarket has received an incredible amount of supply this decade, with inventory more than doubling since Movers & Shakers Largest Vacancies: 2013. In turn, there's been a healthy response for new space. The submarket has seen more than 19 million SF of net absorption in Tenant SF Building 1330 E Fulghum Rd – 1,039,360 sf that period. Vacancy rates have stabilized at 9.3% after rising to 20% after a wave of new buildings completed in 2018. Despite the Kenco Group 458,588 2119 N I-35 E Southpointe 20/35 Bldg 2 – 660,312 sf high vacancies, development is likely to remain robust here and in other South Dallas submarkets, like SW Dallas/US 67. Yokohama Tire Company 431,631 600 Sunridge Blvd 2900 West Dr – 603,378 sf Gulf Relay 350,150 1221 E Centre Park Blvd Crossroads Trade Center Bldg 3 – 458,588 sf SW Dallas/US 67 offers all of the advantages of a South Dallas submarket: great highway access east/west via I-20, as well as Sitone Landscape Supply 337,931 1200 W Wintergreen Rd I-20 Commerce Center – 399,621 sf north/south from I-35E; an abundance of inexpensive, flat, buildable land; and a robust tenant base including many national Baker Triangle 147,750 1709 S Interstate 45 retailers and distributors. The submarket has experienced significantly less activity recently than neighboring SE Dallas/I-45, Reef Technology 60,997 4710 W Ledbetter Dr which contains the Union Pacific intermodal in Wilmer. However, SW Dallas/US 67 is still an attractive submarket for firms seeking a distribution hub in south Dallas. Significant tenants include third-party logistics providers like NFI Industries (1.1 million SF), South Dallas retailers like Kohl's (951,000 SF), and Home Depot (888,000 SF). One of the largest announcements in 2020 was Sunrider. The global health and wellness brand has broken ground on a new 1 million square foot manufacturing facility in Midlothian. The project is expected to be completed in mid-2022 and will house its manufacturing, research, and development operations. The company is investing $56 million into the facility, which is expected to create 200 jobs. South Dallas South Dallas
The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy thereof. The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy 14 The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. 15 Existing Inventory Vacancy Delivered Inventory Under Construction Leasing Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity Northwest Dallas Industrial Vacancy Northwest Dallas Industrial Net Absorption Construction 2018 Q1 107,712,183 6.0% 1,351 5,237,565 4.9% (192,448) 1 35,454 16 1,864,768 2,078,472 1,400,000 2018 Q2 1,361 108,500,809 4,903,792 4.5% 1,122,399 10 788,626 11 2,171,721 1,824,409 5.0% 1,200,000 2018 Q3 1,367 109,187,102 5,401,345 4.9% 188,740 6 686,293 7 1,856,604 3,023,410 Existing Inventory Vacancy Delivered Inventory Under Construction 2018 Q4 1,373 109,788,846 5,211,998 4.7% 733,931 3 544,584 11 Leasing2,451,240 3,001,746 1,000,000 Period Net Absorption Under 4.0% # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity Northwest Dallas Industrial Vacancy Northwest Dallas Industrial Net Absorption 2019 Q1 1,374 109,940,022 5,253,014 4.8% 110,160 1 151,176Construction18 2,968,257 2,555,005 800,000 2018 Q1 107,712,183 6.0% 2019 Q2 1,3511,375 110,574,5865,237,5654,950,3374.9% 4.5%(192,448) 900,1571 35,4541 16634,564 1,864,76819 2,078,4722,382,653 3,042,052 3.0% 1,400,000 600,000 20182019 Q2 Q3 1,3611,378108,500,809111,291,0044,903,7925,126,1004.5% 4.6%1,122,399 577,73910 788,6263 11716,418 2,171,72116 1,824,4091,654,301 2,483,355 5.0% 1,200,000 400,000 20182019 Q3 Q4 1,3671,387109,187,102112,525,7065,401,3455,681,9714.9% 5.0%188,740 678,8316 686,2939 1,234,7027 1,856,60412 3,023,410915,342 2,239,690 2.0% 2018 Q4 1,373 109,788,846 5,211,998 4.7% 733,931 3 544,584 11 2,451,240 3,001,746 1,000,000 NORTHWEST2020 Q1 1,393 112,926,724DALLAS6,019,165 5.3% 63,824 6 401,018NORTHWEST18 2,765,876 1,974,3624.0% DALLAS 200,000 2019 Q1 1,374 109,940,022 5,253,014 4.8% 110,160 1 151,176 18 2,968,257 2,555,005 800,000 2020 Q2 1,394 112,945,305 5,701,202 5.0% 336,544 1 18,581 17 2,747,295 2,338,543 1.0% 0 2019 Q2 1,375 110,574,586 4,950,337 4.5% 900,157 1 634,564 19 2,382,653 3,042,052 3.0% 600,000 SUBMARKET20192020 Q3 Q3 1,3781,401111,291,004113,945,7585,126,1006,164,4354.6% 5.4%577,739 537,2203 716,4187 161,000,4531,654,30115 2,483,3552,279,621 2,066,560SUBMARKET (200,000) 0.0% 400,000 114,551,892 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 20192020 Q4 Q4 1,3871,407112,525,706 5,681,9716,498,6905.0% 5.7%678,831 271,8799 1,234,7026 12606,134 915,34212 2,239,6901,962,077 3,654,2402.0% 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 200,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 20202021 Q1 Q1 1,3931,409112,926,724115,599,0606,019,1656,321,5845.3% 5.5%63,824 1,224,2746 401,0182 181,047,1682,765,87614 1,974,3621,798,452 2,024,573 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 1.0% 0 20202021 Q2 Q2 1,3941,414112,945,305115,949,4605,701,2025,556,3605.0% 4.8%336,544 1,115,6241 18,5815 17350,400 2,747,29515 2,338,5432,426,501 2,470,513 2020 Q3 1,401 113,945,758 6,164,435 5.4% 537,220 7 1,000,453 15 2,279,621 2,066,560 (200,000) 0.0% 2020 Q4 1,407 114,551,892 6,498,690 5.7% 271,879 6 606,134 12 1,962,077 3,654,240 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2018 2018 2018 2018 2019 2019 Northwest2019 2019 2020 2020 Dallas2020 2020 Industrial2021 2021 Leasing ActivityQ1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1NorthwestQ2 Q3 Q4 DallasQ1 Q2 Industrial Construction Northwest Dallas Overview 2021 Q1 1,409 115,599,060 6,321,584 5.5% 1,224,274 2 1,047,168 14 1,798,452 2,024,573 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Existing Inventory Vacancy Delivered Inventory Under Construction Absorption Leasing 4,000,000 Healthy leasing activity inPeriod North Stemmons/ 2021 Q2 1,414 Net 115,949,460Absorption vs 5,556,360Previous Qtr 4.8% 1,115,624vs 12 MonthsUnder Ago5 350,400 15 2,426,501 2,470,513 # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity Northwest Dallas Industrial Vacancy Northwest Dallas Industrial Net Absorption 40,000,000 Valwood has enabled vacancies to run 1,115,624 1,224,274 Construction336,544 2018 Q1 1,351 107,712,183 5,237,565 4.9% (192,448) 1 35,454 16 1,864,768 2,078,472 6.0% well-below metro norms over recent years. Vacancy Northwest Dallas3,500,0001,400,000 Industrial Leasing Activity Northwest Dallas Industrial35,000,000 Construction 2018 Q2 1,361 108,500,809 4,903,792 4.5% 1,122,399 vs Previous10 788,626Qtr 11 vs 122,171,721 Months Ago1,824,409 However, the submarket has added 1.5 Absorption 5.0% 1,200,000 2018 Q3 1,367 109,187,102 5,401,345 4.9%4.8% 188,740vs Previous 6Qtr5.5% 686,293 vs 12 Months7 Ago1,856,6045.0% 3,023,410 4,000,000 3,000,000 40,000,000 30,000,000 million SF of inventory a 2018year Q4 since1,373 2017. 109,788,846 5,211,9981,115,624U/C4.7% SF 733,931 1,224,2743 544,584 336,54411 2,451,240 3,001,746 1,000,000 vs Previous Qtr vs 12 Months Ago 4.0% 3,500,000 The construction pipeline2019 has Q1 remained1,374 109,940,022 5,253,014 Vacancy4.8% 110,160vs Previous 1Qtr 151,176 vs 12 Months18 Ago2,968,257 2,555,005 800,000 35,000,000 25,000,000 2,426,501 1,798,452 2,747,295 2,500,000 stable, with 250,000 SF of2019 new Q2 space1,375 110,574,586 4,950,337 4.5% 900,157 1 634,564 19 2,382,653 3,042,052 3.0% 600,000 4.8% 5.5% 5.0% 3,000,000 30,000,000 2019 Q3 1,378 111,291,004 5,126,100 Delivered4.6% SF 577,739 vs Previous3 716,418Qtr 16 vs 121,654,301 Months Ago2,483,355 20,000,000 currently underway. Despite a string of new U/C SF vs Previous Qtr vs 12 Months Ago 400,000 2019 Q4 1,387 112,525,706 5,681,971 5.0% 678,831 9 1,234,702 12 915,342 2,239,690 2.0% 2,000,000 completions, demand has been able to keep 350,400 1,047,168 18,581 2,500,000 25,000,000 2020 Q1 1,393 112,926,724 6,019,1652,426,5015.3% 63,824 1,798,4526 401,018 2,747,29518 2,765,876 1,974,362 200,000 15,000,000 pace. In turn, this trend should keep vacancies DeliveredLeasing SF Activity 2020 Q2 1,394 112,945,305 5,701,202 5.0% 336,544vs Previousvs Previous 1Qtr Qtr18,581 vs 12 Months17 vs 12Ago2,747,295 Months Ago2,338,543 1.0% 1,500,0000 20,000,000 2,000,000 in check in the near term.2020 The Q3 area is1,401 home113,945,758 to 6,164,435 350,4002,470,5135.4% 537,220 1,047,1682,024,5737 1,000,453 18,58115 2,338,5432,279,621 2,066,560 (200,000) 10,000,000 0.0% 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 202115,000,0002021 many long-term and large2020 industrial Q4 1,407 tenants.114,551,892 6,498,690Leasing 5.7%Activity 271,879vs Previous 6Qtr 606,134 vs 12 Months12 Ago1,962,077 3,654,240 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 20201,500,0002020 2021 2021 1,000,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 5,000,000 These include; Haliburton2021 (932,900 Q1 1,409SF), 115,599,060 6,321,5842,470,5135.5% 1,224,274 2,024,5732 1,047,168 2,338,54314 1,798,452 2,024,573 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 10,000,000 2021 Q2 1,414 115,949,460 5,556,360 4.8% 1,115,624Northwest5 Dallas350,400 Vital15 Statistics2,426,501 2,470,513 CyrusOne (664,600 SF), and Veritiv (246,000 1,000,000 500,000 5,000,000 0 SF). 1,400,000 Northwest Dallas Vital Statistics 6.0% Northwest Dallas Industrial Leasing Activity Northwest Dallas Industrial Construction 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 500,000 0 0 Absorption vs Previous Qtr1,400,0001,200,000vs 12 Months Ago 6.0% 4,000,000 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 Although sales volume has slowed in recent 5.0% 40,000,000 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 Q12020Q22021Q3 2021Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 1,115,624 1,224,274 1,000,000 336,544 0 Delivered Under Construction 1,200,000 3,500,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 years, North Stemmons/ValwoodVacancy is still one vs Previous Qtr vs 12 Months Ago 5.0% 2018 2018 201835,000,0002018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 1,000,000800,000 4.0% Delivered Under Construction of the most actively traded submarkets4.8% in the 5.5% 5.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 800,000 4.0% 3,000,000 30,000,000 metro, and many deals involveU/C national SF or vs Previous Qtr 600,000vs 12 Months Ago 600,000 3.0% 25,000,000 institutional buyers and sellers.2,426,501 1,798,452 400,000 2,747,295 3.0% 2,500,000 Delivered SF vs Previous Qtr400,000 vs 12 Months Ago 20,000,000 200,000 2.0% 2,000,000 350,400 1,047,168 200,000 18,581 2.0% 15,000,000 The Metropolitan/Addison SubmarketLeasing Activity has 0 vs Previous Qtr 0 vs 12 Months Ago 1.0% 1,500,000 1.0% 10,000,000 a dense concentration of both2,470,513 office and 2,024,573 (200,000)(200,000) 2,338,543 1,000,000 industrial product. Its location near many (400,000)(400,000) 0.0% 0.0% 5,000,000 Northwest Dallas Vital Statistics of Dallas's population nodes makes it an 20182018201820182018 2018201820192018201920192019201920192019202020192020 2020202020202021202020212020 2021 2021 500,000 0 1,400,000 Q1 Q1Q2 Q2Q3 Q4Q3 Q1Q4 Q26.0%Q1Q3Q2Q4 Q3Q1 Q4Q2 Q3Q1 Q4Q2 Q1Q3Q2Q4 Q1 Q2 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 attractive option for industrial tenants Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 1,200,000 Net Absorption Delivered Vacant % 0 seeking access to some of the most affluent Net Absorption 5.0% Delivered Vacant % 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 1,000,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Delivered Under Construction and fastest-growing suburbs800,000 in Dallas. The 4.0% submarket is predominantly600,000 a smaller and 3.0% older stock. Of the 21.5 million400,000 SF of inventory, 7.8 million SF is in properties200,000 smaller than 2.0% 0 After being dormant for much of the last decade, construction activity has picked up in Metropolitan/Addison with the 124,450- 100,000 SF. The inventory also skews a bit older, with 10.2 million SF built before 1980.1.0% (200,000) SF Golden Bear distribution facility. The project could push vacancy rates higher as little-to-no space has been completed in the (400,000) 0.0% last decade. In the past 12 months, the submarket2018 2018experienced2018 2018 2019 21,0002019 2019 SF2019 of2020 net2020 absorption.2020 2020 2021 Despite2021 recent move-outs, tenants are taking space in the area. For example, SourcingQ1 Q2 PartnersQ3 Q4 Q1 tookQ2 76,800Q3 Q4 SFQ1 ofQ2 warehouseQ3 Q4 Q1 spaceQ2 in mid-2019 at 14325 Gills Road. The Net Absorption Delivered Vacant % Nearby areas such as East Brookhollow, West Brookhollow, and Central East Dallas haven't seen much supply, either. Vacancies property is located in a cluster of older warehouse distribution space north of 635 and west of the Dallas North Tollway. At track closely with the metro norm with absent construction and a steady flow of absorption. $9.30, the submarket boasts some of the highest rents in the metroplex, slightly below the tech-heavy corridors of Plano and Richardson, which are both north of $10/SF. After averaging better than 300,000 SF of positive net absorption annually from 2012–16, demand has been weak the past few years. Net absorption was essentially flat in 2017 and fell negative in 2018. Through late 2019, absorption turned positive, Leasing despite a series of significant move-outs in the previous year. Move-outs by Tuesday Morning (175,000 SF in 18Q2) and Freeds Vacancies in North Stemmons/Valwood trended above the metro average through much of its history. That's changed over the Furniture (152,500 SF in 18Q1) have had the largest impact on fundamentals. The two vacated buildings represent the largest last decade, as the submarket has coupled strong demand with a lack of supply, leading to impressive vacancy compression current availabilities in the submarket. the last few years. This trend was most apparent in big-box spaces: Vacancies on assets larger than 200,000 SF peaked north of 20% in 2009, but after years of steady absorption, they have hovered near 3% since the start of 2017. Two examples are 1001 W. Movers & Shakers Largest Vacancies: Crosby Road and 2325 E. Beltline, both of which recently announced companies occupying space for a combined total of 254,000 12301 Stemmons Freeway – 177,320 sf SF. Annual rent growth has been positive at 3.7%. Over the last 12 months, the submarket absorbed 240,000 SF. There was an Tenant SF Building 14325 Gillis Rd – 98,000 sf 84,700 SFmove-out was in the ProLogis Park 35 Park and a 80,440 SF move out in the Trinity Mills Park. Lowe’s 648,726 3101 W Oak Street HD Supply 525,641 550 Lakeside Parkway Though much of the submarket's inventory consists of older, lower-functioning assets, its location makes it an attractive BrightStar Care 274,994 350 Lakeside Pkwy Northwest Dallas option for tenants seeking 20,000–100,000-SF blocks of space in northern Dallas. The existing tenant base is made up of Kuehne & Nagel 267,902 1800 Waters Ridge Dr manufacturers, parts and materials distributors, and small businesses. The submarket does not cater to third-party logistics firms Lennox Stores 256,038 2051 McKenzie Driver Teltech Communications 198,854 1901 Lakeside Parkway or e-commerce-dependent operations compared to other submarkets closer to the airport due to the lack of modern, highly Northwest Dallas functional warehouse facilities. CTDI 185,364 1001 Lakeside Parkway Northwest Dallas
The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy thereof. The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy 16 The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. 17 Existing Inventory Vacancy Delivered Inventory Under Construction Leasing Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity South Stemmons Industrial Vacancy South Stemmons Industrial Net Absorption Construction 109,779,129 7.0% 2018 Q1 2,074 3,876,688 3.5% (206,839) 2 376,718 2 702,215 1,152,688 3,000,000 2018 Q2 2,076 110,481,344 4,982,401 4.5% (403,498) 2 702,215 1 193,000 1,809,779 6.0% 2,500,000 2018 Q3 2,076 110,481,344 5,438,241 4.9% (455,840) 0 0 3 1,474,714 2,101,541 Existing Inventory Vacancy Delivered Inventory Under Construction 2018 Q4 2,076 110,481,344 5,303,240 4.8% 247,001 0 0 5 Leasing4,574,714 2,009,051 5.0% 2,000,000 Period Net Absorption Under South Stemmons Industrial Net Absorption 2019 Q1 # Bldgs2,076 Total110,481,344 RBA Vacant5,640,387 SF Vacant % 5.1% (337,147)# Bldg Delivered0 # Bldgs0 6 Activity4,871,394 1,419,893 South Stemmons Industrial Vacancy 1,500,000 Construction 4.0% 109,779,129 7.0% 20192018 Q1Q2 2,0742,076 110,481,3443,876,6885,175,0243.5% 4.7% (206,839) 465,363 2 376,7180 2 0 702,2158 1,152,6885,260,216 1,665,577 3,000,000 1,000,000 20192018 Q2Q3 2,0762,077 110,481,344110,674,3444,982,4015,515,8774.5% 5.0% (403,498) (147,853)2 702,2151 193,0001 193,0008 1,809,7795,211,776 2,365,278 3.0% 6.0% 2,500,000 500,000 20192018 Q3Q4 2,0762,081 110,481,344113,052,7385,438,2415,909,1434.9% 5.2% (455,840)1,985,1280 40 2,378,3943 1,474,7144 2,101,5412,833,382 3,388,414 2018 Q4 2,076 110,481,344 5,303,240 4.8% 247,001 0 0 5 4,574,714 2,009,051 5.0% 2.0% 2,000,000 STEMMONS2020 Q1 2,081FREEWAY113,052,738 5,760,517 5.1% 148,626 0 STEMMONS0 6 3,617,072 772,771 FREEWAY 0 2019 Q1 2,076 110,481,344 5,640,387 5.1% (337,147) 0 0 6 4,871,394 1,419,893 1,500,000 2020 Q2 2,084 115,696,368 5,726,321 4.9% 2,677,826 3 2,643,630 4 1,085,442 1,762,0064.0% 1.0% (500,000) 2019 Q2 2,076 110,481,344 5,175,024 4.7% 465,363 0 0 8 5,260,216 1,665,577 1,000,000 20202019 Q3 2,0772,085 110,674,344115,886,1205,515,8776,471,1835.0% 5.6% (147,853) (555,110)1 193,0001 189,7528 5,211,7765 2,365,2781,666,102 2,053,9623.0% (1,000,000) SUBMARKET SUBMARKET0.0% 500,000 116,828,340 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 20202019 Q4 2,0812,087 113,052,738 5,909,1437,022,9855.2% 6.0% 1,985,128 390,418 4 2,378,3942 942,2204 2,833,3823 3,388,414723,882 1,541,648 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2.0% 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 20212020 Q1 2,0812,087 113,052,738116,828,3405,760,5176,352,8095.1% 5.4% 148,626 670,176 0 00 6 0 3,617,0725 772,7711,107,055 2,034,758 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 20212020 Q2 2,0842,088 115,696,368116,940,3405,726,3215,825,9954.9% 5.0% 2,677,826 638,814 3 2,643,6301 112,0004 1,085,44210 1,762,0061,447,583 1,750,7421.0% (500,000) 2020 Q3 2,085 115,886,120 6,471,183 5.6% (555,110) 1 189,752 5 1,666,102 2,053,962 (1,000,000) 0.0% 2020 Q4 2,087 116,828,340 7,022,985 6.0% 390,418 2 942,220 3 723,882 1,541,648 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2018 2018 2018 2018 2019 2019South2019 2019 Stemmons2020 2020 2020 Industrial2020 2021 2021 Leasing ActivityQ1 Q2 Q3 Q4 Q1 Q2 Q3 Q4SouthQ1 Q2 StemmonsQ3 Q4 Q1 Q2 Industrial Construction 2021 Q1 116,828,340 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Stemmons Freeway Overview Existing Inventory Vacancy 2,087 Delivered6,352,809 Inventory 5.4%Under Construction670,176 0 0 5 1,107,055 2,034,758 Absorption Leasing Vacancy rates in West BrookhollowPeriod have 2021 Q2 2,088Net Absorption116,940,340vs Previous5,825,995 Qtr 5.0% vs 12638,814Under Months Ago 1 112,000 10 1,447,583 1,750,742 4,000,000 # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity South Stemmons Industrial Vacancy South Stemmons Industrial Net Absorption 40,000,000 historically been tight due to a complete lack of 638,814 670,176 Construction2,677,826 2018 Q1 2,074 109,779,129 3,876,688 3.5% (206,839) 2 376,718 2 702,215 1,152,688 7.0% South Stemmons3,000,0003,500,000 Industrial Leasing Activity South Stemmons Industrial35,000,000 Construction new supply with stable tenants.2018 Q2 That2,076 trend110,481,344 has 4,982,401 4.5%Vacancy (403,498) vs2 Previous702,215 Qtr 1 vs 12193,000 Months1,809,779 Ago 6.0% 2,500,000 shifted as a string of move-outs,2018 Q3 and2,076 some110,481,344 supply 5,438,241 4.9%Absorption5.0% (455,840) vs Previous0 5.4% Qtr 0 vs3 12 Months1,474,714 Ago4.9% 2,101,541 4,000,000 3,000,000 40,000,000 30,000,000 is pushing vacancy rates2018 higher Q4 and2,076 closer110,481,344 to 5,303,240 4.8% 247,001 0 0 5 4,574,714 2,009,051 5.0% 2,000,000 638,814U/C SF vs670,176 Previous Qtr 2,677,826vs 12 Months Ago 2019 Q1 2,076 110,481,344 5,640,387 5.1% (337,147) 0 0 6 4,871,394 1,419,893 3,500,000 1,500,000 the metro average. The supply outlook is muted, Vacancy vs Previous Qtr vs 12 Months Ago 4.0% 35,000,000 25,000,000 2019 Q2 2,076 110,481,344 5,175,024 4.7%1,447,583 465,363 01,107,0550 8 5,260,2161,085,4421,665,577 2,500,000 and there are still plenty of developable sites in 5.0% 5.4% 4.9% 1,000,000 2019 Q3 2,077 110,674,344 5,515,877 Delivered5.0% SF(147,853) 1 193,000 8 5,211,776 2,365,278 3.0% 3,000,000 30,000,000 nearby submarkets, making it unnecessary to U/C SF vs Previous Qtr vs 12 Months Ago 500,000 20,000,000 2019 Q4 2,081 113,052,738 5,909,143 5.2% 1,985,128 vs Previous4 Qtr2,378,394 vs4 12 Months2,833,382 Ago 3,388,414 2,000,000 112,000 0 2,643,630 2.0% 25,000,000 redevelop existing assets2020 here. Q1 Rent2,081 growth113,052,738 has 5,760,517 5.1%1,447,583 148,626 1,107,0550 0 6 1,085,4423,617,072 772,771 2,500,000 0 15,000,000 Leasing Activity closely tracked the market2020 average Q2 2,084 in the 115,696,368past two 5,726,321 Delivered4.9% SF2,677,826 vs Previousvs3 Previous Qtr2,643,630 Qtr vs4 12 Monthsvs 1,085,44212 AgoMonths1,762,006 Ago 1.0% 1,500,000(500,000) 20,000,000 2,000,000 years. 2020 Q3 2,085 115,886,120 6,471,183 5.6%1,750,742112,000 (555,110) 12,034,7580 189,752 5 2,643,6301,666,1021,762,0062,053,962 (1,000,000) 10,000,000 0.0% 2020 Q4 2,087 116,828,340 7,022,985 6.0% 390,418 2 942,220 3 723,882 1,541,648 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 202115,000,000 Leasing Activity vs Previous Qtr vs 12 Months Ago 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 1,000,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2021 Q1 2,087 116,828,340 6,352,809 5.4% 670,176 0 0 5 1,107,055 2,034,758 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 1,500,000Q4 Q1 Q2 5,000,000 East Brookhollow is a small, in-town industrial 1,750,742 2,034,758 1,762,006 10,000,000 2021 Q2 2,088 116,940,340 5,825,995 5.0% 638,814South Stemmons1 112,000 Vital10 Statistics1,447,583 1,750,742 submarket adjacent to Dallas Love Field Airport. 1,000,000 500,000 5,000,000 0 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 Most of the submarket's inventory consists of 3,000,000 South Stemmons Vital Statistics 7.0% South Stemmons Industrial Leasing Activity South Stemmons Industrial Construction 500,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 smaller industrial space, andAbsorption only about 20 assetsvs Previous Qtr vs 12 Months Ago 4,000,000 0 2,500,000 40,000,000 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 are larger than 100,000 SF. Virtually638,814 all inventory670,176 3,000,000 2,677,826 7.0% 6.0% 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020Q1 2021Q2 Q32021Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 0 Delivered Under Construction Vacancy 2,000,000 3,500,000 35,000,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 in the submarket is occupied, and its historicalvs Previous Qtr 2,500,000vs 12 Months Ago 6.0% 5.0% 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 5.0% 5.4% 4.9% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Delivered Under Construction average vacancy rate is one of the lowest in 1,500,0002,000,000 5.0% 3,000,000 30,000,000 U/C SF vs Previous Qtr vs 12 Months Ago 4.0% the metro. Due to the high concentration of flex 1,500,000 25,000,000 1,447,583 1,107,055 1,000,000 1,085,442 4.0% 2,500,000 space and close proximity to the urban core, this 1,000,000 3.0% Delivered SF vs Previous Qtr 500,000vs 12 Months Ago 20,000,000 3.0% 2,000,000 submarket commands some 112,000of the highest rents 0 500,000 2,643,630 2.0% 15,000,000 Leasing Activity 0 2.0% in the market. vs Previous Qtr vs0 12 Months Ago 1,500,000 1,750,742 2,034,758 (500,000)1,762,006 1.0% 10,000,000 (500,000) 1.0% 1,000,000 East Hines North is an in-town industrial (1,000,000) 0.0% 5,000,000 South Stemmons Vital(1,000,000) Statistics 0.0% submarket totaling 22.6 million SF of inventory. 20182018201820182018201820182018201920192019 2019 2019201920202019202020202020202020202020202120202021 2021 2021 500,000 0 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 The bulk of it is comprised3,000,000 of older industrial Q1Q1 Q2Q2Q3Q3Q4 Q47.0%Q1 Q1Q2 Q3Q2 Q4Q3 Q1Q4Q2Q1Q3 Q2Q4 Q3Q1 Q4Q2 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 0 facilities smaller than 100,0002,500,000 SF. Virtually the NetNet Absorption Absorption6.0% DeliveredDelivered Vacant % Vacant % 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Delivered Under Construction entire industrial inventory2,000,000 in the submarket 5.0% 1,500,000 runs along Harry Hines Boulevard and the North 4.0% 1,000,000 Stemmons Freeway (I-35), giving tenants access 3.0% 500,000 to many of the major population0 centers in Dallas. 2.0% (500,000) 1.0% Most tenants in East Hines North take up a small footprint, especially relative to some of the major big-box submarkets in the West Hines North is a small(1,000,000) industrial submarket located east of Las Colinas and the0.0% Trinity River and west of I-35 E. The submarket metro. Fewer than 10 tenants occupy more than 100,000 SF in the submarket, and of those, nearly all are owner/users. Many holds very little institutional-grade2018 inventory:2018 2018 2018 Only2019 2019about2019 a2019 dozen2020 2020 assets2020 2020are2021 100,0002021 SF or larger, and nothing of significance of the recent tenant moves in the submarket have involved firms taking between 20,000 SF and 50,000 SF. Generally, the most Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 has been delivered in the past decade.Net Generally,Absorption vacanciesDelivered trend below theVacant metro % average, similar to other close-in industrial active types of tenants have been materials and equipment suppliers for retailers. submarkets. The submarket has not seen much in new construction until recently. Crow Holdings is building a 220,412 SF logistics center near the intersection of Walnut Hill, and I-35 E. Stream Realty Partners delivered a 390,000-SF project split between two phases. The first phase was completed in April 2020, adding 199,070 SF. The second phase was delivered in May 2020.
Leasing Movers & Shakers Largest Vacancies: Leasing activity in this older industrial node remains steady, and vacancies have trended below the metro average for the last Tenant SF Building 1330 Regal Row – 250,770 sf decade. Considering the lack of developable land in the submarket, supply is limited relative to other sections of the metroplex. Petco 608,939 4775 Tinsley Rd 8401 Ambassador Row – 219,175 sf With tenants gobbling up nearly all the smaller and medium-sized blocks of space metro-wide, there is also little risk of movement Rowley Co 183,443 8801 Ambassador Row 8801 Ambassador Row – 183,443 sf outside the submarket, especially considering West Brookhollow's location near some of the densest and highest-income Amazon 178,200 4445 Rock Quarry Rd 10850 Harry Hines Blvd – 182,558 sf population centers in Dallas. Meanwhile, there is a risk of tenants leaving the area. For instance, Mary Kay moved out of its 250,000 Careismatic Brands 152,225 2130-2160 French Settlement 4001 Irving Blvd – 130,000 sf SF distribution facility in late 2019. The company opened a larger facility in Lewisville the year before. Future Foam 100,000 8611Ambassador Row 3220 Irving Blvd – 112,000 sf Allied Interiors Inc 88,000 119 Regal Row Due to steady absorption and a complete lack of deliveries in the last decade, vacancy rates in East Hines North have remained low Gold 3PL 59,400 109-111 Regal Row at 4.4%. The submarket has outperformed the metro average for years: Its vacancy rate has trended below the metro average since Restoration Pro Masters 56,442 3170 Irving Blvd South Stemmons the early 2000s, with the delta ranging from 300-400 basis points since 2014. Underlying the tight vacancy rate in the submarket is Industrial Metal Specialists 44,765 4023 Singleton Blvd the lack of large availabilities here. As of mid-2021, there were no buildings with more than 100,000 SF of contiguous availability. South Stemmons
South Stemmons
The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy thereof. The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy 18 The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. 19 Existing Inventory Vacancy Delivered Inventory Under Construction Leasing Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity South Fort Worth Industrial Vacancy South Fort Worth Industrial Net Absorption Construction 2018 Q1 9.0% 1,452 80,474,447 3,831,432 4.8% (23,596) 4 74,061 7 602,379 1,184,558 1,200,000 2018 Q2 1,456 81,074,144 3,931,877 4.8% 421,705 3 522,150 9 506,477 584,147 8.0% 1,000,000 2018 Q3 1,458 81,109,857 3,748,575 4.6% 219,015 2 35,713 12 1,167,419 1,281,502 7.0% Existing Inventory Vacancy Delivered Inventory Under Construction 800,000 2018 Q4 1,464 81,322,923 2,966,928 3.6% 994,713 6 213,066 13 Leasing1,420,028 851,328 Period Net Absorption Under 6.0% # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Activity South Fort Worth Industrial Vacancy South Fort Worth Industrial600,000 Net Absorption 2019 Q1 1,467 81,612,813 3,125,377 3.8% 115,941 3 289,890 Construction15 1,229,915 868,403 5.0% 2018 Q1 9.0% 400,000 2019 Q2 1,4521,471 80,474,44782,033,0343,831,4323,374,9124.8% 4.1% (23,596) 186,186 4 74,0614 420,2217 602,37913 1,184,5581,003,192 525,496 1,200,000 2018 Q2 1,456 81,074,144 3,931,877 4.8% 421,705 3 522,150 9 506,477 584,147 8.0% 4.0% 200,000 2019 Q3 1,476 82,482,817 3,775,643 4.6% 49,052 5 449,783 17 1,706,658 905,481 1,000,000 2018 Q3 1,458 81,109,857 3,748,575 4.6% 219,015 2 35,713 12 1,167,419 1,281,502 0 SOUTH/CENTRAL2019 Q4 1,482 FORT82,687,623 4,025,640 WORTH4.9% (45,191) 6SOUTH/CENTRAL204,806 13 1,572,406 1,795,6107.0% 3.0% FORT WORTH800,000 2018 Q4 1,464 81,322,923 2,966,928 3.6% 994,713 6 213,066 13 1,420,028 851,328 2020 Q1 1,484 83,036,226 3,357,314 4.0% 1,016,929 2 348,603 17 2,329,093 619,5326.0% 600,000 (200,000) 2019 Q1 1,467 81,612,813 3,125,377 3.8% 115,941 3 289,890 15 1,229,915 868,403 2.0% 2020 Q2 1,485 83,059,026 3,583,754 4.3% (203,640) 1 22,800 18 3,039,861 768,1875.0% 400,000 (400,000) 2019 Q2 1,471 82,033,034 3,374,912 4.1% 186,186 4 420,221 13 1,003,192 525,496 1.0% SUBMARKET20202019 Q3 Q3 1,4761,495 82,482,81784,286,3653,775,6434,845,2384.6% 5.7% 49,052 (34,145)5 449,78310 1,227,33917 1,706,65811 905,4812,947,097 738,8034.0%SUBMARKET 200,000 (600,000) 0.0% 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 20202019 Q4 Q4 1,4821,500 82,687,62384,936,2464,025,6406,022,2964.9% 7.1% (45,191) (527,177)6 204,8065 649,88113 1,572,40616 1,795,6104,539,938 1,086,3723.0% 0 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 20212020 Q1 Q1 1,4841,500 83,036,22684,936,2463,357,3146,022,9734.0% 7.1%1,016,929 (677) 2 348,6030 17 0 2,329,09322 619,5325,358,678 1,069,5282.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 (200,000)Q3 Q4 Q1 Q2 2020 Q2 1,485 83,059,026 3,583,754 4.3% (203,640) 1 22,800 18 3,039,861 768,187 (400,000) 2021 Q2 1,504 86,126,358 6,669,751 7.7% 543,334 4 1,190,112 23 4,770,820 2,440,4361.0% 2020 Q3 1,495 84,286,365 4,845,238 5.7% (34,145) 10 1,227,339 11 2,947,097 738,803 (600,000) 0.0% 2020 Q4 1,500 84,936,246 6,022,296 7.1% (527,177) 5 649,881 16 4,539,938 1,086,372 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2018 2018 2018 2018 2019 2019South2019 2019 Fort2020 Worth2020 2020 2020Industrial2021 2021 Leasing ActivityQ1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1SouthQ2 Q3 FortQ4 WorthQ1 Q2 Industrial Construction South Fort Worth Overview Existing Inventory Vacancy2021 Q1 1,500 84,936,246Delivered6,022,973 Inventory 7.1%Under Construction(677) 0 0 22 5,358,678 1,069,528 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Leasing Period AbsorptionNet Absorption Under While South Central Tarrant has not# Bldgs seen theTotal RBA Vacant SF2021Vacant Q2 % 1,504 86,126,358vs# Bldg Previous6,669,751Delivered Qtr 7.7%# Bldgs vs 543,33412 Months AgoActivity4 1,190,112 23 South4,770,820 Fort Worth2,440,436 Industrial Vacancy 3,000,000South Fort Worth Industrial Net Absorption Construction 40,000,000 same level of growth as 2018South Q1 Dallas submarkets 543,334 -677 -203,640 9.0% 1,452 80,474,447 3,831,432 4.8% (23,596) 4 74,061 7 602,379 1,184,558 1,200,000 such as SE Dallas/I-45 and2018 SW Q2 Dallas/US1,456 67,81,074,144 3,931,877 4.8%Vacancy 421,705 3 522,150 9 506,477 584,147 8.0% South Fort Worth Industrial Leasing Activity South Fort Worth Industrial35,000,000 Construction vs Previous Qtr vs 12 Months Ago 1,000,0002,500,000 it shares some similarities2018 with Q3 its 1,458eastern81,109,857 3,748,575 4.6% 219,015 2 35,713 12 1,167,419 1,281,502 Absorption7.7% vs Previous7.1% Qtr vs 12 Months Ago4.3% 7.0% 3,000,000 800,000 2018 Q4 1,464 81,322,923 2,966,928 3.6% 994,713 6 213,066 13 1,420,028 851,328 40,000,000 30,000,000 counterparts. The submarket provides tenants 543,334 -677 -203,640 6.0% 600,000 2019 Q1 1,467 81,612,813 3,125,377 3.8%U/C SF 115,941 vs3 Previous289,890 Qtr 15 vs 1,229,91512 Months 868,403Ago excellent north/south and east/west highway Vacancy vs Previous Qtr vs 12 Months Ago 5.0% 2,000,000400,000 35,000,000 25,000,000 2019 Q2 1,471 82,033,034 3,374,912 4.1%4,770,820 186,186 45,358,678420,221 13 1,003,1923,039,861525,496 2,500,000 access via I-35W and I-20, respectively, and it 7.7% 7.1% 4.3% 4.0% 200,000 2019 Q3 1,476 82,482,817 3,775,643 Delivered4.6% SF49,052 5 449,783 17 1,706,658 905,481 30,000,000 20,000,000 contains an abundance of flat, buildable land U/C SF vs Previous Qtr vs 12 Months Ago 0 2019 Q4 1,482 82,687,623 4,025,640 4.9% (45,191) vs Previous6 Qtr204,806 vs13 12 Months1,572,406 Ago 1,795,610 3.0% 1,500,000 1,190,112 0 22,800 2,000,000 25,000,000 near those highways. Most2020 of Q1 the submarket's1,484 83,036,226 3,357,314 4.0%4,770,820 1,016,929 5,358,6782 348,603 173,039,8612,329,093 619,532 2.0% (200,000) 15,000,000 2020 Q2 1,485 83,059,026 3,583,754 4.3% (203,640) 1 22,800 18 3,039,861 768,187 (400,000) inventory is in the Carter Industrial Park, located LeasingDelivered Activity SF vs Previousvs Previous Qtr Qtr vs 12 Monthsvs 12 Ago Months Ago 1.0% 20,000,000 2020 Q3 1,495 84,286,365 4,845,238 5.7% (34,145) 10 1,227,339 11 2,947,097 738,803 1,500,000 (600,000) 10,000,000 between Altamesa Boulevard and Everman 1,190,1122,440,436 01,069,528 22,800 768,187 0.0% 1,000,000 2020 Q4 1,500 84,936,246 6,022,296 7.1% (527,177) 5 649,881 16 4,539,938 1,086,372 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 202115,000,000 Parkway. Significant tenants include MillerCoors, Leasing Activity 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2021 Q1 1,500 84,936,246 6,022,973 7.1% (677) vs Previous0 Qtr 0 vs22 12 Months5,358,678 Ago 1,069,528 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 5,000,000 NFI Industries, and Alcon Laboratories. 1,000,000 10,000,000 2021 Q2 1,504 86,126,358 6,669,751 7.7%2,440,436 543,334 1,069,5284 1,190,112 23 768,1874,770,820 2,440,436 500,000 South Fort Worth Vital Statistics 5,000,000 0 Developers are focused on bringing more space South Fort Worth Industrial Leasing Activity South Fort Worth Industrial Construction 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 1,400,000 South Fort Worth Vital Statistics 9.0% 500,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 to this section of Tarrant CountyAbsorption with a numbervs Previous Qtr vs 12 Months Ago 3,000,000 0 1,200,000 8.0% 40,000,000 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 543,334 -677 1,400,000 -203,640 9.0% 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 of projects on the way. With 5.5 million SF oof 1,000,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1DeliveredQ2 Under Construction Vacancy vs Previous Qtr 1,200,000vs 12 Months Ago 8.0% 7.0% 0 35,000,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 space currently under construction, with the 800,000 2,500,000 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 7.7% 7.1% 1,000,000 4.3% Delivered Under Construction largest being a 861,900 SF building in the South 600,000 7.0% 6.0% Q1 Q2 30,000,000Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 U/C SF vs Previous Qtr 800,000vs 12 Months Ago 6.0% 5.0% 2,000,000 25,000,000 Fort Worth I-35 Logistics Centere.4,770,820 Clearview 5,358,678 600,000400,000 3,039,861 400,000 5.0% investments is also buildingDelivered 821,000 SF SF buildingvs Previous Qtr 200,000vs 12 Months Ago 4.0% 20,000,000 200,000 1,500,000 in the same park. Both buildings1,190,112 are expected to 0 0 22,800 4.0% 0 3.0% 15,000,000 deliver in late 2021. Leasing Activity vs Previous Qtr (200,000)vs 12 Months Ago 3.0% (200,000) 2.0% 10,000,000 2,440,436 1,069,528 (400,000) 768,187 2.0% 1,000,000 (400,000) 1.0% (600,000) 1.0% 5,000,000 South Fort Worth Vital(800,000) Statistics 0.0% 0.0% 500,000 0 Leasing 20182018201820182018201820182018201920192019 2019201920192019202020192020202020202020202020202021 20202021 2021 2021 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 The new wave of supply1,400,000 coming on line speaks Q1Q1Q2Q2Q3 Q3Q4 Q4Q19.0% Q1Q2 Q3Q2 Q4Q3 Q1Q4Q2Q1Q3 Q2Q4 Q3Q1 Q2Q4 Q1 Q2 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 1,200,000 8.0% 0 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 1,000,000 Net Absorption Delivered Vacant % Delivered Under Construction volumes to the strength of the market. With 5.5 Net Absorption7.0% Delivered Vacant % Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 800,000 million SF currently underway,600,000 the submarket is 6.0% poised to emerge as one of400,000 the region's premier 5.0% industrial submarkets. Vacancies200,000 have ticked up 4.0% 0 3.0% (200,000) recently, as a handful of speculative projects 2.0% Movers & Shakers Largest Vacancies: (400,000) delivered in 2019, one including(600,000) a 300,000-SF cold storage building in the Carter Industrial1.0% Park. Along with the 1.6 million SF Tenant SF Building 1501 Joel East Rd – 391,985 sf delivered in 2020, the vacancy(800,000) rate has spiked at 13.8%. The vacancy rate may drift higher0.0% with 5.1 million SF expected to deliver in 1101 Everman Parkway – 301,995 sf 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 Homegoods 1,033,760 7500-7601 Oak Grove Rd 2021. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 RSI North America 400,857 1501 Joel Rast Rd 1701 Joel East Rd – 293,705 sf Net Absorption Delivered Vacant % Misfits Market 353,920 2102 Joel East Rd 35/20 Crossroads Distribution Center – 264,125 sf In 2020, the submarket experienced 1.2 million SF of leasing activity. Since 2010, the area has averaged 1.5 million SF annually. Oatly 313,753 7550 Oak Grove Rd 7100 Oak Grove Rd – 250,487 sf Of the 29 new/direct leases signed in 2020, 10 were 30,000 SF or greater. The largest being Dole, signing a 145,000-SF lease in the Purina 310,292 1401 Everman Parkway Madison Distribution Center. The 385,000-SF cold storage building was built in 2001 and is now 100% leased. As of early March, the Fed Ex Ground Package 186,577 1901 Joel East Road area is reporting 81,900 SF of leasing activity, slower than where we stood this time last year. REV1 Holdings 133,281 1851 Joel East Rd As of early 2021, there were 16 spaces with 200,000 SF or greater available. The largest being the 861,900-SF spec building in the Lineage Logistics 122,500 6445 Will Rogers Blvd South Fort Worth I-35 Logistics Center, expected to deliver later this year. The largest block of distribution space available in an Clean Earth Company 72,000 1201 E Highway 67 existing building is found in the Carter Distribution Center. The 391,000-SF Building F was delivered in mid-2020 and features 36- foot clear heights.
South Fort Worth
South Fort Worth South Fort Worth
The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy thereof. The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy 20 The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. 21 BRADFORD COMMERCIAL REAL ESTATE SERVICES