Industrial Mid-Year Report_Q2 2019_FINAL
Cushman &Wakefield Dallas/Fort Worth
Alliance/North Fort Worth
The North Fort Worth and Alliance submarkets are situated along I-35W on the northwest edge of DFW. Both submarkets benefit from proximity to Alliance’s Global Logistics Hub, which includes the BNSF Railway Intermodal Terminal, Alliance Airport, and UPS and FedEx hubs. While Alliance has traditionally been a finite submarket mostly controlled by Hillwood, other developers and institutional investors have entered the area. There are currently at least ten other developers that have acquired or are actively pursuing developable land sites in Alliance. This marks the evolution of the submarket from one that has traditionally been tightly controlled with high barriers of entry, to one with a more diverse investment CORINTH DENTON 35E 35 35W
landscape. It will also bring efficiency to the leasing market as tenants will enjoy options to lease product controlled by a variety of owners. North Fort Worth is an infill submarket with few remaining large land parcels available for development. The submarket’s tenant base has a high percentage of rail users and light manufacturing. Alliance and North Fort Worth combined have delivered 1.4 MSF year- to-date and currently account for nearly 35% of the greater DFW market’s new development pipeline with 10.4 MSF of inventory under construction. The activity from a supply standpoint is being met by high demand with roughly 2.9 MSF of leasing activity during the first two quarters of 2019. FRISCO 380
LEASING ACTIVITY IN ALLIANCE/ NORTH FT. WORTH IS APPROXIMATELY 2.9 MSF AFTER THE FIRST TWO QUARTERS. THIS LEVEL OF DEMAND IS FUELING THE RECORD 10.4 MSF OF SUPPLY UNDER CONSTRUCTION 380
7
LITTLE ELM
287
ALL
HIGHLAND VILLAGE
75
OBSERVATIONS & TRENDS
PLANO
35E
• The Alliance and North Fort Worth submarkets lead the greater DFW industrial market in construction activity with 10.4 MSF of new product under construction at the end of Q2, 8.6 MSF (83%) of which is speculative • Elizabeth Creek Gateway, a two-building 1.2 MSF speculative project developed by DHL and sold in a Forward Commitment to State Farm, is 100% leased less than 6 months after delivery • At mid-year, the Alliance submarket has speculative projects by 7 different developers either under construction or close to breaking ground – the most the submarket has ever experienced • During the first two quarters, the submarkets combined posted over 2.9 MSF of leasing activity, 100% of which was for first-generation product IRVING FARMERS BRANCH HIGHLAND PARK DALLAS ADDISON CARROLLTON 635 635 35E 35E 30 12 114 114 121 360 183 121 12 75 75
FLOWER MOUND
114
ROANOKE
114
SOUTHLAKE
RICHARDSON
35W
GRAPEVINE
287
ALLIANCE
KELLER
NORTH RICHLAND HILLS
360
COLLEYVILLE
635
121
NORTH FORT WORTH
BEDFORD
SAGINAW
EULESS
199
183
HALTOM CITY
820
820
35W
121
30
WHITE SETTLEMENT
34 Q2 2019
GRAND PRAIRIE
ARLINGTON
12
FORT WORTH
35E
30
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