NORTHEAST DALLAS

Vital Stats

Current Events

Northeast Dallas consists of three primary areas that are unique in their tenant base, maturity and overall landscape. It is important to examine each micromarket separately as it is rare to see tenants consider space from one to the next. NE Dallas/Garland, Plano/ Richardson, and Allen/McKinney/Frisco as a whole reported one of the lowest vacancy rates in the overall market and are well-positioned for the future.

NE Dallas/Garland is the oldest and most mature micro-market consisting of supply chain companies as well as manufacturing. Posting a 2.1% vacancy rate is proof of the pressure that exists for tenants to find space here. The last few sites are currently under construction and the focus has shifted to covered land plays and redevelopment. With close proximity to the core population of DFW, rental rate growth is still expected here as it has not quite reached the marks of other comparable submarkets such as Valwood and South Stemmons.

Top Lease Transactions

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

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

• LiteOn has signed a 79,720 SF lease at 3605 E Plano Parkway with Equus.

• Blovelight has signed a 74,758 SF lease at 1102 S Jupiter Road with Reserve Capital

Deals In The Market

• Dallas Northeast Logistics Portfolio is a 219,049 SF five (5) building portfolio owned by KKR.

• Berkeley Partners recently purchased a two (2) building portfolio from TA Realty which included a 281,643 SF building at 2755-2975 Miller Park in Garland.

New Developments

• Frisco Trade Center – A 576,368 SF three (3) building spec project in Frisco with Dalfen

• McIntyre Road – A 525,636 SF three (3) building spec project in McKinney with Becknell Industrial

• Lookout Logistics Center – A 359,169 SF three (3) building spec project with Crow Holdings Industrial

• M-75 Commerce Center – A 304,576 SF spec development with CA Ventures

• Central Circle Logistics Park – A 172,640 SF two (2) building spec project in McKinney with Stonelake

• McKinney 121 – A 171,612 SF two (2) building project with EastGroup Properties

• Perimeter Road – A 297,628 SF two (2) building spec project in Garland with Core 5

• Wylie Business Center – A 274,416 SF spec development in Wylie with Lovett

Large Existing Vacancies

Plano/Richardson has certainly continued to experience an identity shift as it no longer relies solely on the tech industry. As DFW has grown, this area has transformed and attracted a more diverse tenant base focused on fulfilling supply chain needs while still remaining attractive to tech companies because of the proximity to skilled labor. A 5.2% vacancy rate consists primarily of specialized flex space and the majority of leasing activity is focused on the few new developments in the area.

Allen/McKinney/Frisco is the newest micro-market and is seeing the most development activity due to the availability of land. With 2.5M SF under construction from Frisco to McKinney, development is slightly outpacing demand however the current vacancy is only at 4.3%. We expect this area to remain attractive for investors and tenants due to continued population growth.