C&W Industrial Insider Year-End Report_Q4-2018
Cushman &Wakefield Dallas/Fort Worth
DFW Airport
The DFW Airport industrial submarket has a central location with excellent access to multiple major transportation arteries in the greater DFW metroplex and enjoys the highest tenant demand for warehouse/ distribution space. The submarket’s inventory stock is composed of both fee simple ownership and DFW Airport ground leased developments. Since 2015, demand has kept up with new supply and the DFW Airport submarket has played a leading role in absorption for the overall DFW market. 380
The submarket’s lack of developable infill sites along with strong leasing velocity on the northern side of the airport motivated DFW Airport to open the southern end for ground leased development. Developers have aggressively taken advantage of this opportunity, breaking ground on over 5 MSF in 2018, 70% of which is speculative product. The submarket has also seen increased activity on the build-to-suit front with both Mars, Inc. and PPG selecting the submarket for their new facilities. 75
DEVELOPERS BROKE GROUND ON 5 MSF ON DFW AIRPORT GROUND LEASED LAND IN 2018, 70% OF WHICH IS SPECULATIVE PRODUCT, OF WHICH ONE-THIRD IS ALREADY LEASED DENTON 35E
35
LITTLE ELM
380
CORINTH
35W
FRISCO
ALLEN
HIGHLAND VILLAGE
75
PLANO OBSERVATIONS & TRENDS
35E
121
FLOWER MOUND
MURPHY • Speculative deliveries on southern DFW Airport ground leased sites accounted for nearly 75% of new supply in the submarket for 2018 • Since DFW Airport officials opened up additional land for ground leased development at the beginning of 2018, eleven different developers have been awarded sites for a total of over 13 MSF planned on about 1,000 acres • Consistently high tenant demand in the submarket continues to make sense of the increased construction activity, absorbing over 10 MSF in the last three years • Nearly 2.4 MSF (62%) of DFW Airport’s deliveries for the year 2018 occurred in Q4, justifying the slight lag in year- end net absorption numbers from year-end completions RICHARDSON HIGHLAND PARK DALLAS 30 30 635 12 75 80 75
E
114
ADDISON
SOUTHLAKE
CARROLLTON
35E
121
GRAPEVINE
635
FARMERS BRANCH
DFW AIRPORT
114
635
TH LAND LS
360
COLLEYVILLE
114
121
12
BEDFORD
EULESS
35E
183
183
IRVING
820
360
30
30
GRAND PRAIRIE
ARLINGTON
12
35E
FORNEY
45
12
175
34 Q4 2018
20
BALCH SPRINGS
12
20
20
20
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