DFW INDUSTRIAL Trends & Transactions

Trends

Cost Stabilizing

• Shell construction and finish-out costs are beginning to stabilize.

Delayed Delivery

• Dock levelers, steel, HVAC, and roofing materials are all significantly delayed.

• Spec work has started to also include dock packages due to extended lead times.

Rental Rates

• Continue to increase despite increased construction.

• Annual increases continue to creep upwards with Landlords testing the waters on every deal.

Drive To Increase Efficiency

• Increased car and trailer parking requirements.

Increased Attention On Workforce

• Where are they coming from?

• Better work environment (Ex. HVAC Warehouse)

Pre-Leasing Activity Remains Strong but might be later in construction phase due to uncertain delivery timelines.

Market Trends

• If the market experiences a downturn, we expect concessions to become more favorable for tenants.

• Entitlements and building permits continue to be delayed as municipalities are overloaded with requests.

• The continued expansion of e-commerce fuels the increased demand for industrial space.

• 3PLs continue to account for a significant portion of the overall positive absorption.

• Sublease listings appear to be on the rise and currently account for 0.8% of the overall reported vacancy.

Top Lease Transactions

• Southwire has signed a 1,076,459 SF lease at Alliance Westport with Hillwood.

• Cart.com has signed a 766K SF lease at 301 Apache Trail with FGT Holdings.

• Canadian Solar Inc. has signed a 753K SF lease at 3000 Skyline with Capstar.

• Ariat Boots has signed a 609K SF lease on Western Boulevard in Denton with Exeter.

• Lennox has signed a 499K SF lease with Weber Gruene located at their DFW Logistics Hub development on Airport land.

• EMLS signed a 419K SF lease on Western Boulevard in Denton with Scannell.

• LX Pantos USA, Inc. has signed a 405,785 SF lease at Northlake Logistics Center with Ares.

• Reece Morsco leased 326,728 SF from Crow Holdings at 1001 E Wintergreen Road in DeSoto, Texas just south of I-20.

• Fed Ex has renewed their 279,330 SF lease with LaSalle at 840 W Sandy Lake Road within their Coppell Trade Center project.

• PGL has signed a 263,900 SF lease at Carter Park Distribution with TA Realty.

• HD Supply renewed a 260,429 SF lease at 3101 High River Road with Barings.

• General Dynamics has signed a 239,918 SF lease at 19800 IH 635 with Creation Equity.

• Ryder Logistics has signed 234,478 SF lease at Northmark Commerce Center with Crow/Creation

• Molson Coors has signed a 218,282 SF lease at Carter Distribution Center with Cabot Properties.

• Southwest ADI signed a 200,546 SF lease at 820 Crossing with Scannell.

• Fleco Industries has signed a 184,902 SF lease with Lincoln Property Company on 2055 Luna in Carrollton.

• Volvo has signed a 172,620 SF lease and a 180,504 SF lease at Northlake 35 with Clarion.

• Pegasus has signed a 171,398 SF lease at 424 Wilmeth Road with ML Realty.

• Johnson Development leased 167,490 SF at 505 N Wildwood Drive to an Undisclosed user.

• Flexpipe Systems has signed a 157,065 SF lease at 1515 Corporate Crossing with Westcore.

• Refresco signed a 148,357 SF lease at 14500 FAA Boulevard with Link.

• Dallas Airmotive has signed a 145,776 SF lease with HLCI at their DFW Walnut Hill development at Passport Park.

• Dakota Hardwoods expanded and extended their lease in 133,000 SF at 631-641 W Mockingbird with TA Realty.

• Nautilus Hyosung has signed a 125,443 SF lease with Stream Realty at their Passport 125 development at Passport Park.

• Freight Krafters signed a 100,807 SF lease at 2001 Ave K East with DWS.