DFW INDUSTRIAL Facts & Figures

Overall

Current Events

At mid-year, the Great Southwest (GSW) industrial submarket ended Q2 2023 in a relatively stable position. Per CoStar reporting in Q2, GSW reported slight positive net absorption of 21,505 SF. This is primarily due to the delivery of 641,232 SF of new construction and 1.6M SF of deliveries YTD. At Q2 2023, GSW reported a total of 2,478,362 SF of new projects currently under construction.

Despite the Q2 slight positive absorption, the GSW Q2 vacancy rate was 3.9%. Increasing 0.5% from Q1 reported vacancy rate of 3.4%. This ranks GSW second among the major submarkets with the lowest vacancy rates (behind only Northeast Dallas). Projecting forward to the rest of 2023, we expect the GSW market to remain one of the top-performing submarkets with continued rent growth as tenant demand remains strong across the DFW market. Additionally, GSW remains one of the tightest submarkets for bulk spaces above 200K SF.

Top Lease Transactions

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

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

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

• Scholastic renewed an 85,046 SF lease at 3470 S Watson with Morgan Stanley.

• Office Star Products signed a 76,631 SF lease at 1600 Tech Centre Parkway with East Group Properties.

Deals In The Market

• Oxford Properties is selling two assets in the GSW submarket: 1375 Ave S and 1169 113th.

• KKR is selling the GSW & North Fort Worth Infill Portfolio containing five (5) buildings on Eden Road.

Vital Stats

New Developments

• Prologis Interchange 20 – A four (4) building spec development with Prologis totaling 742,543 SF

• 732 Avenue R – A 114,400 SF spec development with Proterra Properties/Longpoint

• GSW Commerce Center at 161 – A two (2) building spec development with Molto totaling 464,495 SF

• Wildlife Commerce Park – A 1M SF three (3) building spec development with Crow Holdings Industrial

• MacArthur Grand Logistics Center – A 602,355 SF development with Brookfield that was pre-leased to Conn’s Furniture

• Shady Grove Logistics Crossing – A three (3) building spec development with Scannell/Crow Holdings totaling 999,322 SF

Large Existing Vacancies

• 14900 Trinity Boulevard – 310K SF

• 1600 S Great Southwest Parkway – 298,506 SF

• 410 W Trinity Boulevard – Prologis GSW 48 - 262,854 SF

• 502 Fountain Parkway – 214,684 SF

• 7009 S Cooper Street – Building 3 - 204,565 SF

• 804 Shady Grove Road – 203,430 SF