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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.