Q3 2022 DFW Industrial Market Report

Property: Meacham Commerce Center

DFW

817.710.1111

972.280.8353

972.280.8312

817.632.6151

MATT CARTHEY CANON SHOULTS JOHN GORMAN JOSH BARNES ANDREW GILBERT GEORGE JENNINGS

THOMAS GRAFTON MADDY CANTY KEATON BRICE BLAKE TROIANI

WILLIAM WILSON MITCH CANTWELL

WALKER

PORTER

HLC OUTLOOK

The Dallas-Fort Worth industrial market ended Q3 2022 with continued momentum by reporting the 48th consecutive quarter of positive net absorption. Although the under construction figures have reached a new high watermark, the leasing activity has largely kept pace with deliveries. Rental rates are continuing to rise especially in the “Infill” submarkets as vacancy rates continue to drop to new record lows. Furthermore, with less than 30% of new construction located within the “Infill” submarkets, we expect the substantial rent growth within the city’s core to continue.

The outlying submarkets continue to grow at an unprecedented pace due to land availability, interstate connectivity, capital markets interest and consistent demand from occupiers. We expect the development figures to decrease over the next year due to recent changes from the Fed which will likely allow for rental rates to grow steadily as inventory is absorbed.

Preleasing activity is still prevalent but concerns over delivery dates have increased due to the continued material shortages and delays. Such delays have encouraged many landlords to increase the amount of spec work including office, lights and levelers in a race to provide “operational” space for incoming prospective tenants.

As we enter the final quarter of 2022, we expect the overall industrial market to continue strong as overall leasing activity in the market is still very active. We also expect DFW to outperform other parts of the country as it continues to be the biggest benefactor of large-scale relocation efforts and population growth.

MARKET OBSERVATIONS

With the recent changes in the debt markets, the

wave has slowed down. Continued tenant demand has helped counter this by giving developers confidence in increased rental rates.

Fundamentals of what make DFW appealing are unchanged.

growth, lower cost of living, pro business environment, central location and connectivity will continue to be attractive to both businesses and capital markets.

is lower than previous years, partially because CoStar does not record a pre-lease as absorption until the building is delivered and the tenant takes occupancy. We expect increased absorption numbers later

DFW INDUSTRIAL Trends & Transactions

TRENDS

Cost Increases

•

•

reevaluate

be delayed

TOP LEASE TRANSACTIONS

• Pegasus has signed a 754,473 SF lease at Northlink with TA Realty.

• Crate & Barrel has signed a 698,880 SF lease from Scannell Properties at 1700 N Goode Road in Wilmer off I-45.

• Samsung has signed a 670,941 SF lease at Fort Worth Logistics Hub with Vantrust.

• GXO has signed a 644,318 SF lease at Everman Crossroads with MDH Partners.

• GC Packaging has signed a 643,760 SF lease at 100-200 Planters with Barings.

• Conn’s has signed a 602,335 SF lease at 1303 W Hunter Ferrell Rd with Brookfield Properties.

• Kenco has signed a 489,310 SF lease from USAA Real Estate at 2100 Jo Drive south of I-20.

• American Licorice Company has signed a 395,883 SF lease from Scout Cold Logistics at 3301 N Dallas Ave south of I-20.

• Cotton on has signed a 394,477 SF lease at 7007 South Cooper Street with NorthPoint Development.

• TTI, Inc. has signed a 334,750 SF lease at Meacham Commerce Center with McCormack Commercial.

• On Trac has signed a 300,202 SF lease from Crow Industrial at 2708 Centre Park in DeSoto south of I-20.

• Method Machine has signed a 284,238 SF lease at Synergy Crossing with TCRG.

• Suddath has signed their 249,741 SF renewal at 204 Airline Drive in Coppell with Nuveen.

• Insight Direct has signed a 249,480 SF lease at 46 Ranch Logistics Park with Nuveen.

• Samsung expanded into 210,550 SF at 240 Dividend Drive in Coppell with Duke Realty.

• DHL Express has signed a 202,492 SF lease with CLX Ventures at 2801 S Airfield Drive at the Airport.

• Critical Process Systems Group has signed a 193,490 SF lease at 2161 Redbud Rd with TA Realty.

• Modular Power Solutions has signed a 189,954 SF lease at Bison Grove in Lewisville. The project is currently under contract to be sold to Centerpoint.

• PFS Web, Inc. has signed a new lease totaling 186,900 SF with Alliance Industrial at their Freeport Commerce Center development in Irving.

• LEBCO has signed a 139,941 SF lease from AEW at 2777 W. Danieldale Road, Dallas south of I-20.

• Agridime has signed a 122,500 SF lease at Carter Park Distribution with TA Realty.

DFW Airport 664 88,993,828 1,519,674 1,976,492

East Dallas 2,642 98,343,694 5,757,158 5,841,539

Great SW/Arlington 1,134 119,776,463 3,559,769 4,152,529

Henderson County 18 1,234,238 29,968 29,968

North Fort Worth 785 122,967,098 9,269,987 9,479,987

Northeast Dallas 1,540 64,662,576 3,116,062 3,398,982

Northwest Dallas 1,399 116,805,865 4,289,559 4,725,795

NW Dallas Outlying 32 2,432,816 23,513 23,513

South Dallas 718 117,505,908 6,420,640 6,650,089

South

South

90,007,088

116,343,977

939,073,551

1,546,537 907,388 5,663,085 4,508,528

461,688 1,783,335 12,977,428 2,015,704

306,805 965,945 4,348,901 5,988,967

0 0 0 72,695

5,153,921 2,238,619 21,018,047 8,706,510

1,424,637 508,843 3,567,242 3,812,518

1,136,717 2,898,225 6,935,154 5,494,823

85,887 20,000 290,940 53,390

6,620,757 8,617,850 24,509,329 7,276,640

2,789,026 1,523,519 6,451,612 4,667,094

(476,340) 527,927 1,810,318 3,635,021

CURRENT EVENTS

Per CoStar reporting, the Great southwest (GSW) industrial submarket concluded Q3 2022 with continued momentum. At the end of Q3 2022, GSW reported positive net absorption of 306,8005 SF and posted outstanding

activity numbers of more than 5.9M SF. Additionally, GSW reported 965,945 SF of new construction completions YTD and a total of 4,348,901 SF of new projects currently under construction.

2022 vacancy rate decreased slightly to 3.0% versus 3.1% at Q2 2022. This ranks

the top four major submarkets

lowest

further into 2022, we expect the GSW market to remain one of the top performing submarkets with continued rent growth as tenant demand continues to expand across the DFW market.

TOP LEASE TRANSACTIONS

• Conn’s has signed a 602,335 SF lease at 1303 W Hunter Ferrell Road with Brookfield Properties.

• Cotton on has signed a 394,477 SF lease at 7007 S Cooper Street with NorthPoint Development.

• Imperial Supplies has signed a 154,440 SF lease at Bardin Crossing @ I-20 with Cabot.

• Premier Performance has signed a 64,650 SF lease at 2503 N Belt Line Road with Crow Holdings.

• Bassett has signed a 39,582 SF lease at 1019 Enterprise Place with TA Realty.

DEALS IN THE MARKET

• DFW Plus High Growth Portfolio – KKR is selling a 2.68M SF DFW & Chicago portfolio. Five of the buildings are in the GSW/Arlington submarket.

• DFW Infill Portfolio – Link Industrial is selling a 759,889 SF multi-building portfolio with one building in GSW (2300 E Randol Mill Road).

NEW DEVELOPMENTS

• Remington I-30 | Building 2 – a 416K SF spec development with Graff Interests / Ironwood Realty Partners.

• Cooper Commerce Center | 7007-7011 S Cooper Street | Buildings 2, 3 and 4 – a 349K, 205K and 191K SF spec project with NorthPoint Development.

• 1600 S Great Southwest Parkway – a 298,506 SF spec development with IDI Logistics.

• 2001 E Avenue K - a 200,175 SF spec development with DWS.

• Bardin Crossing | Building 2 – a 154,440 SF spec development with Ironwood Realty Partners/Cabot.

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

• Wildlife Commerce Park – a 1,000,000 SF three-building spec development with Crow Holdings Industrial.

LARGE EXISTING VACANCIES

EXPERTS

•

Grove Road

184,283

203,430

VITAL STATS

CURRENT EVENTS

The Dallas-Fort Worth (DFW) Airport industrial submarket closed 2021 with an all time low vacancy rate of 3.82% which has continued to drop through Q3 2022 and currently sits at a 2.2% vacancy rate. The vacancy rate continues to decrease as the submarket has seen a strong influx of leasing for big blocks of space in Passport Park and Perot/Invesco’s 161 as well as a flurry of leasing between 100K and 400K SF suites. There is currently only one delivered building at the airport that can accommodate a 200K to 400K SF user. The rates in that size should continue to rise at a rapid pace.

TOP LEASE TRANSACTIONS

• Suddath has signed their 249,741 SF renewal at 204 Airline Drive in Coppell with Nuveen.

• Samsung expanded into 210,550 SF at 240 Dividend Drive in Coppell with Duke Realty.

• DHL Express signed a 202,492 SF lease with CLX Ventures at 2801 S Airfield Drive at the Airport.

• Modular Power Solutions signed a 189,954 SF new lease at Bison Grove in Lewisville. The project is currently under contract to be sold to Centerpoint.

• PFS Web, Inc. signed a new lease totaling 186,900 SF with Alliance Industrial at their Freeport Commerce Center development in Irving.

• Broadridge renewed their 117,236 SF renewal with Clarion Partners at 404 S Royal Lane in Coppell.

• Kuehne & Nagel signed a 94,702 SF lease with EastGroup Properties at their new development at 351 International Parkway.

NEW DEVELOPMENTS

• DFW Commerce Center – a 2M SF three (3) building project with CLX on Airfield Drive, set for delivery in Q4 2022.

• Royal 114 – a 430K SF four (4) building project with Archway Properties and Nuveen, set to deliver in Q2 2023.

• Freeport Commerce Center – a 328,175 SF two (2) building project with Alliance Industrial Company, set for completion in Q1 2023.

• Sandy Lake 121 – a 130K SF development with Myers & Crow at Sandy Lake and Highway 121 in Coppell, set for delivery in Q4 2022.

• Passport 125 – a 125K SF development with Stream Realty Partners at Passport Park, set for completion in Q1 2023.

• Valley View Point - ICM Asset Management is under construction on a single building development totaling 120,900 SF on Airport land.

• DFW Logistics Hub - Three building project totaling 1.5M SF developed by Weber & Company and Gruene Real Estate located on Airport land.

• DFW Park 161 - Perot Development Company and Invesco are under construction on their 707,940 SF building in Irving on State Highway 161 just east of the Airport.

Rental rates remained strong and are expected to continue to grow throughout 2022. The bulk of warehouse rental rates are increasing into the mid $7.00 rate range depending on building age. In the 50K to 100K SF range for functional shallow bay product, we are seeing rates from $8.00 to $9.00 depending on the finish level and age. Rental abatements are still prevalent depending on renewal versus new deals and the size of the lease transaction. Tenant improvement costs remained high because of increasing construction costs.

DFW International Airport is ranked as one of the largest cargo airports in the country. It boasts a high proportion of newer buildings since 2000 and, as a result, the submarket has a high concentration of efficient product with clear heights and dock configurations suitable for modern distribution. The submarket consists of large big-box users including Amazon, Uline, PPG, Bed Bath & Beyond, McKesson and many others.

EXPERTS

GILBERT

Vice President agilbert@holtlunsford.com 972.280.8312

Market Director kbrice@holtlunsford.com 972.421.1956

CURRENT EVENTS

The Northeast/East Dallas submarket continues to be heavily sought after by tenants, developers, and the capital markets. With the NE Dallas/Garland pocket posting a 1.2% vacancy rate, there is a clear need for additional space which sets the stage well for the new developments coming along the 635/Highway 80 corridor. All product types are experiencing rent growth at an unprecedented pace with rental rates rising as much as 30% from one year ago. Big moves are being made with covered land plays in Garland which will bring unprecedented land pricing to the submarket. This is only made possible by the expected rent growth that is still to come. All eyes are on new frontiers, such as Forney and Sunnyvale, which are seeing good activity with new leases being signed on fully delivered buildings.

Please note: Costar’s Northeast Dallas boundaries includes portions of the Far Northeast Dallas submarket. As such, their data in the charts may vary.

TOP LEASE TRANSACTIONS

• GC Packaging signed a 643,760 SF lease at 100-200 Planters with Barings.

• Lowe’s signed a 78,523 SF lease at 1601 E Meadows Boulevard with Landmark Companies.

• Europa Sports signed a 64,150 SF renewal at 1851 Big Town Boulevard with Link Industrial.

• Lurin Advisors signed a 54,600 SF sublease at 1330 S Jupiter with Lexor.

• Karpal signed a 50,244 SF lease at 12750 Perimeter with DRA Advisors.

• Chloe Lighting signed a 49,994 SF renewal at 2701 S Shiloh Road with DRA Advisors.

DEALS IN THE MARKET

• Urban District 30 - a 977,013 SF five (5) building portfolio in Mesquite with KKR.

• DFW Infill - a 717,592 SF nine (9) building portfolio with Prologis including one (1) in Garland.

NEW DEVELOPMENTS

• Eastgate Logistics Center - a 1,273,727 SF spec building in Forney with Seefried Properties

• Gateway Crossing Logistics Park - a 1,762,886 SF three (3) building project in Forney with Principal and Holt Lunsford Commercial Investments (a 1,024,549 SF cross dock, a 473,397 SF cross dock, and a 264,940 SF cross dock)

• Innovation Ridge Logistics Park - a 1,137,650 SF three (3) building project in Forney with Lovett (a 817,538 SF cross dock, a 175,092 front load, and a 145,020 SF front load)

• Platform 80 / 20 - a 942,659 SF two (2) building project in Forney with Intrepid Equity and Investments (a 512,223 SF cross dock and a 430,436 SF cross dock)

• 20 East Trinity Pointe | Phase I – a 1.8M SF three (3) building project in Forney with Stream Realty Partners

• Clements/Highway 80 – a 1,029,110 SF two (2) building project in Forney with Exeter (a 529,047 SF cross dock and a 500,063 SF cross dock)

• East Scyene Road – a 918,173 SF two (2) building project in Mesquite with Urban Logistics Realty (a 592,995 SF spec cross dock and a 325,218 SF spec cross dock)

• Mesquite 635 – a 555,790 SF three (3) building spec project in Mesquite with LGE (a 239,918 SF front load, a 159,728 SF rear load and a 156,144 SF rear load)

• East Dallas Commerce Center – a 373,322 SF spec development in Mesquite with IDI Logistics

• Meadows Road – a 355,319 SF two (2) building project in Mesquite with Landmark Companies (a 216K SF spec cross dock and a 139,319 SF spec rear load)

• 1515 Corporate Crossing – a 301,120 SF spec development in Rockwall with Stream Realty Partners and Westcore

• E Scyene Road – a 310,900 SF rear load BTS for Vehicle Accessories Group in Mesquite with Jackson Shaw

• 300 US Highway 80 – a 202,104 SF spec rear load development in Sunnyvale with Langford Properties

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

• Marquis Road – a 194,029 SF two (2) building spec project in Garland with Landry Commercial

• Exeter Buckner – a 102,206 SF spec development in Mesquite with Exeter

EXISTING VACANCIES

VITAL STATS

CURRENT EVENTS

TOP LEASE TRANSACTIONS

Critical Process Systems Group has signed a 193,490 SF lease at 2161 Redbud Road with TA Realty.

Endeavor Managed Services expanded into 89,909 SF at 310 Wilmeth Road with ML Realty Partners.

• Ericsson has signed a 70,458 SF renewal at 3101 E Plano Parkway with Cabot.

• Winning Foods signed a 37,184 SF lease at 1249 Commerce with ATCAP Partners.

• Cinemark Holdings has signed a 27,346 SF renewal at 10570 John W Elliot Drive with GID Investment Advisors.

• Open Options has signed a 23,217 SF lease at 3724 E Plano Parkway with Provident Realty Advisors.

• WorldPac has signed a 19,193 SF lease at 4500 S Hardin Boulevard with EastGroup Properties.

DEALS IN THE MARKET

• DFW Infill - a 717,592 SF nine (9) building portfolio with Prologis, two (2) of the buildings are in Plano.

• Frisco Center - a 282,807 SF seven (7) building portfolio with Sinacola Companies.

NEW DEVELOPMENTS

• McKinney Logistics Park - a 525,636 SF three (3) building spec project in McKinney with Becknell Industrial.

• McKinney National Phase 2 – a 481,158 SF three (3) building spec project in McKinney with Transwestern Development.

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

• McKinney Airport Trade Center | Phase 1 – a 320K SF three (3) building spec project in McKinney with Greystar.

• McKinney 121 – a 212,200 SF two (2) building project with East Group.

• McKinney

Commerce Center – a 132,710 SF building

in McKinney with HLCI.

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

• McKinney Trade Center

Phase 2 – a 171,400 SF spec

in McKinney with ML Realty.

LARGE EXISTING VACANCIES

The Far Northeast Dallas submarket continues to be highly sought after given its proximity to areas with exceptional population growth. Leasing activity has remained strong through Q3 2022 and is expected to continue with new tenant requirements coming to the market daily. Richardson and Plano have led the charge with the highest net absorption for this quarter while also posting vacancy near 3.5%. Functional warehouse spaces have become much harder to find in these pockets which sets the stage for the new developments that are getting started in Rockwall, McKinney and Frisco. Preleasing activity for these developments has been stronger than expected for smaller suite sizes which indicates that the “flight to quality” is real as tenants are compromising on timing and are willing to pay significantly higher rates. Due to this, rates are expected to continue to increase–even with record breaking deliveries expected over the next 12 months.

Please note: Costar’s Northeast Dallas boundaries includes portions of the Far Northeast Dallas submarket. As such, their data in the charts may vary.

EXPERTS

CURRENT EVENTS

Through Q3 2022, the northwest Dallas industrial submarket continues to be one of the strongest performing submarkets in DFW. Valwood continues to be a haven for building supplies companies as well as 3PL’s with its direct access to I-35. Billingsley, Longpoint, Panattoni, and TA Realty have leased their recent developments in Valwood. The Metropolitan/Addison submarket is extremely tight from a vacancy standpoint as there are not any more available sites for development. Lastly, as developers move north to track down sites in Denton and Sanger, Highway 121 is now centrally located in the DFW market and an extremely desirable location for users. The northwest Dallas submarket ended Q3 2022 with a 3.7% vacancy rate which will continue to drop as the final wave of developments on Highway 121 will be delivered in Q4 and will be leased soon thereafter.

TOP LEASE TRANSACTIONS

• Diesel Displays has signed a 127,945 SF lease at 4435 Spring Valley in Farmers Branch with Loloi Rugs.

• Lowe’s signed a 78,000 SF lease at Denton Point II with TA Realty in Denton.

• Buck Mason signed a 55,000 SF lease with Link at 4105 Live Oak on Highway 121 in The Colony.

• Muenster Milling signed a 52,000 SF lease at Denton Point II with TA Realty in Denton.

• TB Philly signed a 49,618 SF lease with Link at 4109 Live Oak on Highway 121 in The Colony.

DEALS IN THE MARKET

• Denton Point I and II - TA Realty is selling the two-building project in Denton totaling 242,000 SF and is currently fully leased.

NEW DEVELOPMENTS

• Exeter Westpark II – a 1.1M SF development with Exeter in Denton, set for completion in Q4 2022.

• Exeter Westpark III - a 421,200 SF development with Exeter in Denton, set for completion in Q2 2023.

• Denton Crossing 1 and 2 – a 699K SF two (2) building crossdock project with Scannell, set for completion in Q4 2022.

• Urban District 35 – a 441K SF four (4) building project with Urban Logistics Realty located in Denton with I-35 frontage, set for completion in Q4 2022.

• ICC - 35 - a 1.1M SF three (3) building project with CLX Ventures located directly off of Loop 288 and I-35 in Denton, set for completion in Q3 2023.

• 3333 University Drive - Billingsley is under construction on a two-building project in Denton totaling over 900,000 SF, set for completion Q3 2023.

• 288/380 Logistics Park - an 800,000 SF four (4) building project with Velocis in Denton located at Loop 288 and 380, set for completion in Q2 2023.

• Live Oak Logistics Park, Phase II – an 800K SF three (4) building project with Link Industrial, set for completion in Q1 2023.

• 280 E Corporate Drive – a 117,843 SF development in Lewisville, currently under contract to be sold to an investor.

VITAL STATS

CURRENT EVENTS

TOP LEASE TRANSACTIONS

• Crate & Barrel leased 698,880 SF from Scannell Properties at 1700 N Goode Road in Wilmer off I-45.

• Kenco leased 489,310 SF from USAA Real Estate at 2100 Jo Drive south of I-20.

• American Licorice Company leased 395,883 SF from Scout Cold Logistics at 3301 N Dallas Ave south of I-20.

• On Trac leased 300,202 SF from Crow Industrial at 2708 Centre Park in DeSoto south of I-20.

• Steelcase leased 147,447 SF from LINK at 4951 Langdon Road, Dallas TX just south of I-20.

• LEBCO leased 139,941 SF from AEW at 2777 W. Danieldale Road, Dallas south of I-20.

DEALS IN THE MARKET

• 1700 N Goode Road – 698,880 SF offered by Scannell Properties (Seller).

• 3800 Cedardale Road – Arcapita is selling a 776,629 SF building.

• Loop 12 – Harlan Crow & Jim Hendricks is selling a 267,560 SF three (3) building portfolio to Foundry/UBS.

• 1600 N Polk Street - 350,798 SF offered by Modlo.

NEW DEVELOPMENTS

• Southport Parkway Blds. 1 & 2 – 2,126,880 sf spec development by Xebec.

• I-20 at Cedardale Road – 2,056,615 sf by Ares.

• 3701 Midpoint Drive – 1,037,316 sf spec development by MetLife with Panattoni.

• Core 45 Bld. 2 – 1,027,068 sf spec development by TRG/ Grandview Partners.

• Trinity West Bld. 1 – 1,005,200 sf spec development by Lovett.

• 3486 Cedardale Road – 1,084,460 sf spec development by Trammell Crow.

LARGE EXISTING VACANCIES

• 950 N Interstate Hwy 45 – 1,013,833 with Majestic Realty

• Sunridge Boulevard – a 826,620 SF spec vacancy with EXETER

• 2900 West Drive – a 603,378 SF spec vacancy with Oakmont Industrial Group

• 2101 Millers Ferry Road – a 510,796 SF vacancy with Panattoni Development

• 4601 Langdon Road – a 488,780 SF vacancy with Link Industrial (2nd generation)

• 4831 Cleveland Road (Tradepoint 20/45) – 417,691 sf with Blumenfeld Development Group.

2200 Danieldale Road – a 393K SF vacancy with CalSTRS (2nd generation)

The overall South Dallas Industrial submarket as surveyed of I-30, I-20, & I-45 is 150 Million square feet and is now 6.3% vacant which is 1.1% higher than reported in Q2 2022. In accordance with the area surveyed, CoStar is reporting positive 3,908,027 square feet of Net Absorption for South Dallas in Q3 2022. South Dallas has 24.5 Million SF under construction in the I-30, I-20, & I-45 corridors combined with another 15.2 Million in the pipeline. Of the existing 24.5 Million SF under construction, 21.7% or 5.2 Million SF is for Build-to-Suit or Design Build assignments or has been pre-leased. The remaining 78.3% or 18.7 Million SF under construction is speculative development. For the past 12 months the South Dallas submarket of I-30, I-20 and I-45 averaged a single digit vacancy rate of 5.25%. However, many expect that single digit vacancy to rise again along Interstate 20 and Interstate 45 as construction projects from various developers may outpace tenant demand and absorption in the changing macro-economic environment.

Please note: CoStar’s South Dallas boundaries do not include the west Dallas I-30 corridor. As such, their data in the charts may vary.

CURRENT EVENTS

The South Stemmons industrial submarket continues to be a strong performing infill market of the Dallas-Fort Worth Metroplex. Leasing activity has remained healthy with the submarket reporting 942,684 SF of leasing activity at the end of 3Q 2022. Vacancy was recorded at 3.9% at the end of Q3 2022 which increased slightly from 3.4% reported at the end of Q2 2022. Rental rates and price per SF continue to rise and landlords continue to capitalize on the submarket’s irreplicable infill location. South Stemmons, historically known as a user-owned market, has become primarily institutionally owned. Location has continued to outweigh functionality for tenants who benefit from the close proximity to Dallas CBD, the Medical District, and immediate access to thriving Dallas suburbs.

TOP LEASE TRANSACTIONS

• National Food and Beverage has signed a 85,000 SF lease at 9030 Premier Road with Gillis Thomas.

• Sojourn Group, LLC leased 23,760 SF at 300 Union Bower Court with ML Realty.

• Imaging Products leased 20,000 SF at 1850 Empire Central Drive with Link.

DEALS IN THE MARKET

• Loop 12 Central – a 267,560 SF two (2) building spec project with Jim Hendricks and Harlan Crow.

NEW DEVELOPMENTS

• Loop 12 Logistics Center – a 167,490 SF development with Johnson Development.

• Core Logistics Center III | Building A – a 69,256 SF development with Crow Holdings Industrial.

• Core Logistics Center III | Building B – a 110,986 SF development with Crow Holdings Industrial.

• Trinity Industrial Park | Building A - 39,774 SF development with GTC Real Estate Investments.

• Trinity Industrial Park | Building B - 42,999 SF development with GTC Real Estate Investments.

LARGE EXISTING VACANCIES

•

Clifford Drive – 109,200

Manor Way - 52,841

Irving Boulevard - 48,402

Woodall Street - 48,368

VITAL STATS

CURRENT EVENTS

In the midst of capital market uncertainty, North Fort Worth remains as strong and stable as ever through Q3 2022. With just under 4M SF of absorption in Q3, the North Ft Worth submarket has now surpassed its record-setting, annual absorption posting of 7.5M SF for 2021 with a YTD posting of 11M SF. Q3 activity was so strong, the market started to see both pre leasing transactions (1.2M SF at Elizabeth Creek Gateway, 334k SF at Meacham Commerce Center and 114k SF at Air Commerce Center) and leases executed within 45 days of delivery (291K SF at Westside 35, 250k SF at Sylvania Crossing and two 124K SF deals at Westside 35.) The submarket vacancy rate has compressed down to 6.9% and the second generation vacancy rate is hovering around 1% currently.

TOP LEASE TRANSACTIONS

•

at Northlink with TA Realty.

• TTI, Inc. has signed a 334,750

at Meacham Commerce Center with McCormack Commercial.

• Method Machine has signed a 284,238

at Synergy Crossing with TCRG.

DEALS IN THE MARKET

•

•

NEW DEVELOPMENTS

• Northlake 35 – a 2,571,480

with Clarion.

• Alliance Center North – a 1,057,414

(5)

two (2) building project with Hillwood.

• Elizabeth Creek Gateway C – a 1,510,500 SF development with DHL.

• Northlake Logistics Crossing – a 1,391,800 SF two (2) building project with Scannell Properties.

• Mecham Commerce Center – a 1,311,911 SF four (4) building project with McCormack Commercial Development.

• Alliance Center East 1 – a 1,240,584 SF development with Hillwood.

• Silver Creek Business Park – a 1,108,938 SF development with Majestic Realty.

• Cowtown Crossing – a 1,021,129 SF three (3) building project with TDC.

• Intermodal Logistics Center 6 – a 1,008,416 SF development with Northpoint Development.

• 114 Logistics Park – a 1,004,400 SF development with Logistics Property Company.

• Basswood 35 – a 628,260 SF five (5) building project with Eastgroup Properties.

• Fort West – a 531,601 SF three (3) building project with Creation Equity and JP Morgan.

• DFW Point 35 – a 485,680 SF two (2) building project with Stonemont.

• Westport Parkway Commerce Center – a 400,565 SF development with Molto Properties.

• Champions Circle Business Park – a 361,040 SF three (3) building project with Hopewell.

• 820 Crossing – a 335,004 SF development with Scannell Properties.

• Champion Crossing – a 317K SF development with Greystar.

• Northmark Commerce Center – a 234,478 SF development with Creation Equity and Crow Holdings Industrial.

• Port 156 Logistics Center – a 213,581 SF development with KBC/Stonemont.

LARGE EXISTING VACANCIES

CURRENT EVENTS

The South Fort Worth industrial submarket posted a Q3 2022 vacancy of 5.7%, a figure slightly down from the 7.8% recorded in Q2 2022. This drop in vacancy correlates with the ~289k SF of new deliveries and the ~2.1M SF in absorption that were confirmed this quarter. A statistic which ranks the South Fort Worth submarket in second behind South Dallas in terms of Q3 absorption further validating its position as one of the top performing submarkets in the metroplex. We also expect to see the vacancy rate decrease through the remaining quarter of 2022 with ~700k SF of active deals tracking to be made in the submarket in contrast with the ~600K SF of expected new construction deliveries.

Looking forward to 2023, the South Fort Worth speculative development pipeline is currently slated to deliver over 2.1M SF with additional projects on the cusp of announcement that will bolster that figure. Specifically, this pipeline consists of TCRG’s 655,500 SF cross-dock at Risinger Road Building 2, Majestic’s 781,530 SF cross dock at Southland 10, VanTrust’s 607,074 SF cross dock at Fort Worth Logistics Hub Building 2, and Cabot’s 80,300 SF rear-load development at Everman Trade Center Building E. All of these developments have already broken ground.

TOP LEASE TRANSACTIONS

• Samsung has signed a 670,941 SF lease at Fort Worth Logistics Hub with Vantrust.

• GXO has signed a 644,318 SF lease at Everman Crossroads with MDH Partners.

• Insight Direct has signed a 249,480 SF lease at 46 Ranch Logistics Park with Nuveen.

• Mouser Electronics has signed a 145,000 SF lease at Mansfield Commerce Park with Longbow.

• Agridime has signed a 122,500 SF lease at Carter Park Distribution with TA Realty.

DEALS IN THE MARKET

• Mansfield Commerce Park – a 520K SF four (4) building portfolio

• 1100 S Main Street – a 84,500 SF building

• 3212 S Cravens Road – a 75,672 SF five (5) building portfolio

NEW DEVELOPMENTS

• HomeGoods | BTS – a 1,033,760 SF BTS for HomeGoods with Clarion and Crow Holdings Capital.

• Risinger Park South – a 834,380 SF two (2) building project with TCRG Properties.

• Southland Business Park | Phase 3 – a 781,530 SF building part of a master-planned park with Majestic Realty.

• Misfits Market – a 353,970 SF BTS with Rob Riner Companies and Miramar Capital.

• Everman Trade Center | Building E – an 80,300 SF development with Cabot Properties.

• Fort Worth Logistics Hub | Building 2 – 607,074 SF development with VanTrust.

LARGE EXISTING VACANCIES

• Carter Park East | Building 1 – 549,780 SF

• Carter Park Distribution | Building 2 – 263,900 SF

• South Fort Worth Commerce Center | Building 2 – 180,556 SF

• Fort Worth South Business Park | Building 6 – 159,932 SF

• 46 Ranch Logistics