dallas fort worth - bradford companies · the dallas/fort worth industrial market ended the first...
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2016 Q1 Market Trends © 2016 by Xceligent, Inc. All Rights Reserved
INDUSTRIAL MARKET REPORT
Dallas-Fort Worth
1st Quarter 2016
2016 Q1 Market Trends © 2016 by Xceligent, Inc. All Rights Reserved
2
Table of Contents and Methodology/Map 2-3
Market Overview 4-5
Statistics by Market 6
Vacancy Rates & Asking Rates 7-8
Leasing & Absorption 9
New Construction 10
Industrial Advisory Board Members 11
Xceligent Team 12
The Dallas-Fort Worth tracked set consists of an inventory of buildings considered to be competitive by the brokerage community. All buildings within the competitive tracked set have been reviewed and verified by members of the Advisory Boards for the market area.
Xceligent is a leading provider of verified commercial real estate information which assists real estate
professionals, appraisers, owners, investors and developers that make strategic decisions to lease, sell,
buy and develop commercial properties.
Table of Contents/
Methodology of Tracked Set
Tracked Inventory (Industrial)
The total square feet of all single and multi-tenant buildings greater than 20,000 sf, including
owner occupied facilities. Large manufacturing facilities, data centers, airplane hangar space,
truck terminals/courts and obsolete/remediation properties are excluded.
Available SF All of the available leasable space within a building, whether it is occupied or vacant, for
direct lease or sublease space. Space can be available but not vacant, for example, if the
landlord, or his agent, is marketing space that will be coming available at a future date
because a tenant is planning to move.
Vacant SF The total of the direct vacant square footage in a building that is being marketed.
Net Absorption
The net change in occupied square feet from quarter to quarter, expressed in square feet.
Note This report reflects Direct Vacancy and Absorption, Sublease space is excluded
2016 Q1 Market Trends © 2016 by Xceligent, Inc. All Rights Reserved
3
Industrial Market Map
2016 Q1 Market Trends © 2016 by Xceligent, Inc. All Rights Reserved
4
Overview
Dallas-Fort Worth Industrial Overview
The Dallas/Fort Worth Industrial market ended the first quarter of 2016 with a vacancy rate of 7.4%. The vacancy rate continues to drop every quarter and net absorption totaled over 4 million square feet in first quarter of 2016.
The bulk of the absorption for the Dallas/Fort Worth Industrial market was in South Dallas which had just over 1 million square feet of net absorption.
The Dallas/Fort Worth Industrial market has minimal space on the market, while clients are readily available and as a result this has driven rates up.
The Industrial Market continues to grow and stay competitive with just over 14 million square feet of space under construction.
Inventory (SF) Total Available (SF) Total Vacant (SF) Total Vacancy Rate (%) Total Quarterly Net
Absorption (SF) YTD Total Net Absorption
(SF)
87,343,598 11,677,014 8,789,874 10.1% 661,044 661,044
353,923,721 34,089,002 25,282,662 7.1% 1,366,487 1,366,487
165,488,548 15,196,977 10,916,026 6.6% 2,065,787 2,065,787
606,755,867 60,962,993 44,988,562 7.4% 4,093,318 4,093,318
Inventory (SF) Sum of Direct Available
SF Direct Vacant (SF) Direct Vacancy Rate (%)
Direct Quarterly Net Absorption (SF)
YTD Direct Net Absorption (SF)
87,343,598 11,032,905 8,592,595 9.8% 685,510 685,510
353,923,721 33,032,410 25,031,943 7.1% 1,372,185 1,372,185
165,488,548 13,418,198 10,852,400 6.6% 2,065,787 2,065,787
606,755,867 57,483,513 44,476,938 7.3% 4,123,482 4,123,482
Inventory (SF) Available Sublease (SF) Sublease Vacant
(SF) Sublease Vacancy Rate
(%) Sublease Quarterly
Absorption (SF) YTD Sublease Net Absoprtion (SF)
87,343,598 644,109 197,279 0.2% (24,466) (24,466)
353,923,721 1,056,592 250,719 0.1% (5,698) (5,698)
165,488,548 1,778,779 63,626 0.0% - -
606,755,867 3,479,480 511,624 0.1% (30,164) (30,164)
2016 Q1 Market Trends © 2016 by Xceligent, Inc. All Rights Reserved
5
Dallas-Fort Worth Industrial Overview
5.0%
5.5%
6.0%
6.5%
7.0%
7.5%
8.0%
8.5%
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1
Historical Vacancy Rate & Net Absorption
(1,000,000)
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1
Historical Net Absorption by Use
Flex/R&D Warehouse - Distribution Bulk Warehouse
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
11.0%
12.0%
13.0%
14.0%
2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1
Historical Vacancy Rates by Use
Flex/R&D Warehouse - Distribution Bulk Warehouse
2016 Q1 Market Trends © 2016 by Xceligent, Inc. All Rights Reserved
6
Statistics by Market
# of Bldgs Inventory (SF) Total Vacant (SF) Sublease Vacant
(SF) Vacancy Rate
(%) Total Quarterly Absorption (SF)
YTD Total Net Absorption (SF)
South Dallas 402 53,056,951 5,458,359 - 10.3% 1,020,203 1,020,203
Flex/R&D 46 2,405,637 223,103 - 9.3% -29,567 -29,567
Warehouse - Distribution 297 29,054,450 3,326,920 - 11.5% 226,947 226,947
Bulk Warehouse 59 21,596,864 1,908,336 - 8.8% 822,823 822,823
Great Southwest 1,328 118,302,402 8,482,019 178,212 7.2% 469,664 469,664
Flex/R&D 184 8,318,663 947,464 30,191 11.4% -114,789 -114,789
Warehouse - Distribution 1,064 82,300,323 6,664,973 84,395 8.1% 813,853 813,853
Bulk Warehouse 80 27,683,416 869,582 63,626 3.1% -229,400 -229,400
South Fort Worth 377 24,625,304 895,413 - 3.6% 62,804 62,804
Flex/R&D 54 2,330,242 102,423 - 4.4% 66,504 66,504
Warehouse - Distribution 319 21,090,836 792,990 - 3.8% -3,700 -3,700
Bulk Warehouse 4 1,204,226 - - 0.0% - -
East Dallas 820 69,277,307 4,765,323 - 6.9% 302,654 302,654
Flex/R&D 158 7,353,597 573,473 - 7.8% 66,133 66,133
Warehouse - Distribution 629 50,862,259 3,510,954 - 6.9% 297,456 297,456
Bulk Warehouse 33 11,061,451 680,896 - 6.2% -60,935 -60,935
Lonestar Turnpike 185 20,994,650 582,506 - 2.8% 759,493 759,493
Flex/R&D 17 1,203,107 268,598 - 22.3% 10,000 10,000
Warehouse - Distribution 139 8,995,959 119,387 - 1.3% 75,493 75,493
Bulk Warehouse 29 10,795,584 194,521 - 1.8% 674,000 674,000
West Fort Worth 84 4,291,512 139,177 - 3.2% -43,044 -43,044
Flex/R&D 3 190,099 - - 0.0% - -
Warehouse - Distribution 81 4,101,413 139,177 - 3.4% -43,044 -43,044
North Fort Worth 442 63,566,800 7,871,736 41,526 12.4% 456,382 456,382
Flex/R&D 50 5,570,794 1,366,957 33,126 24.5% - -
Warehouse - Distribution 305 25,919,751 2,878,314 8,400 11.1% -82,815 -82,815
Bulk Warehouse 87 32,076,255 3,626,465 - 11.3% 539,197 539,197
South Stemmons 1,232 64,351,694 2,587,509 - 4.0% -97,552 -97,552
Flex/R&D 198 8,922,567 707,558 - 7.9% 67,321 67,321
Warehouse - Distribution 1,004 48,218,413 1,712,863 - 3.6% -137,731 -137,731
Bulk Warehouse 30 7,210,714 167,088 - 2.3% -27,142 -27,142
DFW Airport 437 58,143,522 5,975,109 21,000 10.3% 7,243 7,243
Flex/R&D 162 10,264,534 884,130 - 8.6% 103,235 103,235
Warehouse - Distribution 197 22,554,191 3,295,095 21,000 14.6% -69,396 -69,396
Bulk Warehouse 78 25,324,797 1,795,884 - 7.1% -26,596 -26,596
North Stemmons 803 61,112,045 3,255,655 170,886 5.3% 789,704 789,704
Flex/R&D 294 14,937,621 1,305,714 33,962 8.7% 352,271 352,271
Warehouse - Distribution 464 34,720,455 1,660,903 136,924 4.8% 63,593 63,593
Bulk Warehouse 45 11,453,969 289,038 - 2.5% 373,840 373,840
Northeast Dallas 562 39,641,515 2,880,421 100,000 7.3% 323,056 323,056
Flex/R&D 353 21,422,303 2,029,614 100,000 9.5% 61,627 61,627
Warehouse - Distribution 195 14,330,239 561,161 - 3.9% 261,429 261,429
Bulk Warehouse 14 3,888,973 289,646 - 7.4% - -
Denton/Lewisville 266 29,392,165 2,095,335 - 7.1% 42,711 42,711
Flex/R&D 71 4,424,434 380,840 - 8.6% 78,309 78,309
Warehouse - Distribution 162 11,775,432 619,925 - 5.3% -35,598 -35,598
Bulk Warehouse 33 13,192,299 1,094,570 - 8.3% - -
Grand Total 6,938 606,755,867 44,988,562 511,624 7.4% 4,093,318 4,093,318
2016 Q1 Market Trends © 2016 by Xceligent, Inc. All Rights Reserved
7
Vacancy Rates & Asking Rates
Vacancy Rate % Average Weighted Direct Asking Rate
2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1
South Dallas 10.3% 8.3% 8.3% 9.5% 10.3% $3.50 $3.35 $3.34 $3.34 $3.35
Great Southwest 7.7% 7.7% 7.8% 6.8% 7.2% $4.28 $3.96 $4.02 $4.08 $4.27
South Fort Worth 4.5% 4.2% 4.0% 3.9% 3.6% $3.38 $3.40 $3.35 $3.38 $3.72
East Dallas 7.0% 8.1% 9.0% 7.3% 6.9% $3.99 $4.11 $3.88 $3.72 $3.73
Lonestar Turnpike 7.1% 6.7% 5.6% 5.2% 2.8% $3.44 $3.39 $3.25 $3.30 $3.30
North Fort Worth 11.3% 11.7% 12.9% 11.9% 12.4% $3.78 $3.77 $4.96 $5.03 $5.08
South Stemmons 4.9% 4.1% 3.8% 3.9% 4.0% $5.44 $5.21 $5.53 $6.08 $5.76
DFW Airport 9.8% 10.3% 9.4% 9.7% 10.3% $6.88 $6.32 $6.20 $6.03 $5.99
North Stemmons 7.0% 6.1% 6.4% 6.2% 5.3% $4.77 $4.95 $4.92 $5.17 $5.24
Northeast Dallas 8.4% 8.1% 7.7% 7.7% 7.3% $7.19 $6.98 $9.51 $9.66 $9.57
Denton/Lewisville 9.9% 9.9% 8.9% 7.1% 7.1% $5.80 $5.72 $5.57 $6.27 $6.17
Grand Total 8.1% 7.9% 7.9% 7.4% 7.4% $4.80 $4.65 $4.92 $5.03 $5.27
2016 Q1 Market Trends © 2016 by Xceligent, Inc. All Rights Reserved
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Vacancy Rates & Asking Rates
10.3%
7.2%
3.6%
6.9%
2.8% 3.2%
12.4%
4.0%
10.3%
5.3%
7.3% 7.1%
Vacancy Rate by Market
$2.91 $2.25 $2.65
$15.50
$12.00
$7.70 $8.52
$4.18 $4.36
$-
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
$18.00
Flex/R&D Warehouse - Distribution Bulk Warehouse
Asking Lease Rate Range by Type (NNN)
$3.40 $4.51
$3.72 $3.72 $2.99
$5.57 $5.73 $5.95 $5.27
$10.07
$7.01
Average Weighted Asking Rates by Market
2016 Q1 Market Trends © 2016 by Xceligent, Inc. All Rights Reserved
9
Leasing & Absorption
Largest Lease Transactions
Property Name SF Occupied or
Vacated Tenant Name Market Specific Use
Mountain Creek Bldg 1 - Crow Holdings
630,000 Niagra Bottling Great Southwest Warehouse - Distribution
Turnpike Distribution Center 29 594,000 OHL Lonestar Turnpike Bulk Warehouse
Northport 35 Business Center Bldg A 309,357 Westco Aircraft Parts North Fort Worth Bulk Warehouse
Trammell Crow @ 35-Eagle Bldg D 391,389 Exel North Fort Worth Bulk Warehouse
Point West Industrial VI 263,625 Quaker Sales and Distribution
Company DFW Airport Bulk Warehouse
Texas Crossing 226,224 Smith System Manufacturing Co Northeast Dallas Warehouse - Distribution
Sales
Property Name Approximate
Sale Price SF Sold Buyer Seller Market Specific Use
Lakeview Center II $23,535,000 150,000 TCRG Opportunity II LLC Coppell Associates DFW Airport Flex/ R&D
401 NE 38th St, Fort Worth
$4,187,500 132,000 KW Martin Lumber Co BH Holt 38 LLC North Fort Worth
Warehouse - Distribution
4630 Alpha Rd, Farmers Branch
$2,750,000 38,810 E3 MGMT LLC Stone Done Real Estate LLC North Stemmons
Warehouse - Distribution
5535 Airport Fw $1,687,500 25,460 Qualbe Marketing Group LLC
Richard D Knowles & RDK Family Limited
Great Southwest
Warehouse - Distribution
2016 Q1 Market Trends © 2016 by Xceligent, Inc. All Rights Reserved
10
New Construction
3,628,398
5,776,646
230,622
1,670,673
746,763 1,099,873
42,000
1,065,623
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
Current New Construction by Submarket
2016 Q1 Market Trends © 2016 by Xceligent, Inc. All Rights Reserved
11
Industrial Advisory Board Members
Dallas Fort Worth
CBRE Steve Berger CBRE Bob Scully
Steve Trese John Brewer
David Easterling Bradford Nick Talley
Colliers Allen Gump Michael Spain
Matt Thompson Jim Ferris
Duke Realty Randy Wood Cushman & Wakefield Blake Anderson
Holt Lunsford Josh Barnes E Smith Realty Partners Jim Hazard
Lee & Associates George Tanghongs Holt Lunsford Canon Shoults
Nathan Denton Matt Carthey
Brett Lewis Donnie Rohde
Lincoln Property Michael Peinado Lee & Associates Mark Graybill
Mark V Mike McCartan Jones Lang LaSalle Jamie Galati
NAI Robert Lynn Rick Medinis George Curry
David Peterson NAI Roberty Lynn Michael Stanzel
Craig Jones Patrick Embry
Robert Blankenship Prologis Mitch Pruitt
John Leinbaugh Stream Cannon Green
Prologis Mitch Pruitt Transwestern Jeff Givens
Cody Riles
Stream Blake Kendrick Research
Seth Koschack CBRE CBRE Research
Hanes Chatham Jones Lang LaSalle Steve Triolet
Jason Moser Walter Bialas
Ryan Boozer Colliers Mike Otillio
Transwestern John Fulton Swearingen Greg Bennett
Brett Owens Henry S Miller Doug Prude
Maverick Brad Lipton PM Realty Group Ariel Guerrero
Mercer Jeremy Mercer Cushman & Wakefield Ryan Tharp
Avison Young Matt Middendorf
Jim Lake Company Conner Ivy
Hudson Peters Michelle Hudson
Younger Partners Carter Crow
Whitehall Roy Greenberg
Jessica Reinhardt
2016 Q1 Market Trends © 2016 by Xceligent, Inc. All Rights Reserved
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This information has been obtained from sources believed reliable. While we do not doubt its accuracy, we
have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to
independently confirm its accuracy. For more information, please contact :
Xceligent Dallas-Fort Worth Team
Tonalea Rehmer Dirctor of Analytics (816) 559-5965 [email protected]
Chris Summers VP of Sales (214) 735-2387 [email protected]
Kyle Brookmole Director of Client Services (214) 280-7067 [email protected]
Tim Cover Director of Client Services (214) 597-7740 [email protected]
Devin Polley Director of Client Services (214) 674-7062 [email protected]
Jonathan Dudley Director of Client Services (626) 529-6606 [email protected]
Brenda Schzerba Director of Client Services (972) 632-9479 [email protected]
Nicole McCarty Director of Client Services (248) 778-7080 [email protected]