• I hired Ward Richmond because I needed a fast-paced individual who specializes in solutions for 3PLs and could deliver a comprehensive solution that maximized site value and enabled me to close the deal. His market intelligence and relentless effort on this project undoubtedly helped us secure the business with this new, Fortune 500 customer.

    BRETT M. MEARS President - Palmer Logistics
  • Ward Richmond understands the 3PL business. We rely on Ward to help solve our customers’ supply chain opportunities and provide them with logistics solutions that fit their needs.

    BRYAN KELLER Chief Executive Officer – Keller Logistics
  • Ward has consistently demonstrated a high level of customer service, a strong work ethic, and comprehensive understanding of transportation & logistics-related real estate.

    ED Brickley Fund Manager, Realterm Logistics
  • Ward and his team have consistently delivered a high level of customer service over the course of several years and hundreds of transactions by working closely with our team in an effort to assist us with developing and implementing creative real estate solutions.

    Frank Mazzone RM, Real Estate, TFI International
  • Positive attitude and customer-centered approach made for a great working relationship.

    Joe Fidalgo MD, N America, Marine Harvest
  • Ward and his team have consistently exceeded our expectations while working closely with our Properties Team to execute our real estate strategies and achieve our stated objectives.

    MAYNARD F. SKARKA COO, Yrc Freight
  • The Colliers team worked quickly and efficiently to leverage their local market relationships to find KW multiple short term, flexible space solutions in an expedient and professional manner.

    DEAN DOKGO Vice President, KW International
  • Ward has acted as our strategic real estate partner for several years having assisted our team during our rapid growth by utilizing strong relationships and unparalleled market knowledge to source off-market opportunities for property expansion needs.

    TAYLOR WHITE CEO, Performance POP

Ward Richmond

stars

Corporate real estate solutions

LOGISTICS stars TRANSPORTATION stars ECOMMERCE CONSULTANT stars SPEAKER stars THOUGHT LEADER
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DFW Market Update – Q4 2017

DFW Market Update – Q4 2017

February 9, 2018 Market Reports 0 Comments

DFW INDUSTRIAL DROPS MIC

By Ward Richmond

“A mic drop is the gesture of intentionally dropping one’s microphone at the end of a performance or speech to signal triumph.
Figuratively, it is an expression of triumph for a successful event and indicates a boastful attitude toward one’s own.” – WIKIPEDIA

DFW Industrial absolutely crushed it in 2017. As we bust through the 800,000,000 SF inventory mark, industrial real estate owners everywhere are buying Ferraris.

According to our high caliber research team at Colliers International, the DFW industrial market is at an all-time low at 5.9% vacancy. 10% used to be normal when I started in the business 12 years ago.

DFW delivered 28 million SF of new industrial construction in 2017, and we have another 18 million under construction.I might need to change my business plan and become a leasing agent instead of a tenant rep. Just kidding! Or am I?

The critical stat is that we had 24 million SF in net absorption. Honestly, I have lost track of how many consecutive years this has occurred, but I believe we have been building and absorbing +/- 20 million SF of industrial space every year since Amazon signed their first 1 million SF lease in Dallas. They now have 10 million SF thanks to Jeff Bezos taking down another 1.5 million SF in DFW in 2017.

My team continues to evolve our execution techniques and strategy as we work with top logistics companies, retailers, e-tailers and shippers, helping them to improve their supply chain efficiencies as they deal with increased consumer demand, a tightening (not to mention expensive) labor market, and capacity constraints due to massive pressure on the supply chain caused by the e-commerce boom. It’s not about the real estate anymore. It’s about transportation cost, labor availability, and government incentives programs. That’s why DFW is killing it — a strategic location, robust labor pool, and business friendly government. Here’s to keeping on

keeping on in 2018!

To get further inside my supply chain brain,
please check out my website and blog:
www.SupplyChainRealEstate.com

2017 TOP FIVE DFW DEALS

    • Prologis signs on to build and sell Kohler a 1.3 million SF Big Bomber in the South Dallas submarket
    • Exeter builds and sells UPS 1 million SF in Arlington, TX in the GSW Submarket.
    • Amazon signs 920,275 SF lease for 18 months in Lancaster, TX with Van Trust in South Dallas.
    • Duke buys the 875K SF Wayfair deal for a sub 6% cap on cost. Try to compete with that, bro! The City of Lancaster also offered the e-commerce giant a sweet incentives package to seal the deal. Another victory for the South Dallas submarket.
    • Haier signs on for 700K with Crow Holdings in Grand Prairie, TX in GSW submarket. This actually just seems boring after reading the Top 4. #DFWIndustrial

2017 TOP RICHMOND TEAM PROJECTS

    • TF Final Mile – City of Industry (50K SF Sublease), Teterboror, NJ (70K Sf Renewal), North Hollywood, CA (50K SF Site Selection), Atlanta, GA (50K SF Sublease).MISSION ACCOMPLISHED!
    • Syncreon – Grapevine, TX – 250K SF – Sublease – MISSION ACCOMPLISHED!
    • Post Foods – Farmers Branch, TX – 145K SF – Property Sale MISSION ACCOMPLISHED!
    • The Ledbetter Family – Lancaster, TX – 70 Acres – Industrial land Sale MISSION ACCOMPLISHED!
    • Keller Logistics – 280K SF – Site Selection MISSION ACCOMPLISHED!

Key Takeaways

Q4 2017 was a record quarter for Big-Box net absorption with over 7.1 million square feet. After a slow first three quarters, absorption more than caught up in Q4, posting a record year with 17.9 million square feet. Major Q4 move-ins included Amazon moving into 2.5 million square feet in three properties, UPS moving into 1 million square feet, and TTI occupying its 600k build-to-suit.

Due to strong absorption, vacancy decreased 0.5% from Q3 to 9.9%. South Dallas is still the market with the highest vacancy, but it saw a significant drop to 19.2% after absorbing two million square feet. Infill markets such as DFW Airport and the West I-30 corridor are in demand and posted 2.6% and 3.9% vacancy rates, respectively.

For all of 2017, the market added 22 million square feet in 43 properties, the most in our statistical history. In Q4, 13 properties delivered and were 51% leased on completion. The construction pipeline still holds 33 properties totaling 16 million square feet, of which two-thirds are speculative.

Asking rental rates were flat from Q3 to Q4 at $3.79. Rates are up 1.9% year-over-year showing that supply and demand are reaching a balance.

MEET THE TEAM MEMBERS

Ward Richmond has over eleven years of experience specializing in industrial real estate, and has negotiated over 500 transactions
while working in over 100 cities across the USA, Canada, and Mexico. Several publications have featured Ward for his expertise
in this field including the Wall Street Journal, Dallas Morning News, and Dallas Business Journal. He also serves on Colliers International
Industrial Advisory Board, and is a member of the Logistics & Transportation Solutions Group.

The Richmond team also includes Liam Logan, Cole Hooper, Brad Balke, Zack Rutland, and Rachel Hendrix. They assist with market
analysis, financial analysis, strategic real estate and facilities planning, site selection, and acquisition and disposition services.

WARD RICHMOND, SIOR
Executive Vice President

LIAM LOGAN
Senior Associate

COLE HOOPER
Associate

ON THE ROAD AGAIN

February 20-22, 2018: Colliers Americas Conference — Phoenix, AZ
March 11-13, 2018: IWLA — Tampa, FL
May 2-4, 2018: Colliers L&T Group Conference — San Francisco, CA
May 5-9, 2018: IAMC Spring Forum — Savannah, GA

BRAD BALKE
Associate

ZACK RUTLAND
Associate

RACHEL HENDRIX
Client Services Coordinator

MIKE OTILLIO
Research Director

KARI BEETS
Research Associate

The Richmond team is supported by Colliers International Research Team:

YEAR END REPORT

Check out this killer new infographic developed by our talented Colliers Chicago & DFW marketing teams, which highlights some of the
Top Distribution Markets in the USA.

CONTACT WARD RICHMOND AT:

Office 214.217.1201
Mobile 214.336.5757
Email ward.richmond@colliers.com




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