• 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

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Posts by Ward Richmond

DFW Market Report – Q2 2019

July 25, 2019 Market Reports 0 Comments

DFW explodes into mid 2019 with 30 Million SF under construction. As an FYI, this is comprised of 101 new buildings.

The Hot, Wet & 40 Foot High American Summer

By Ward Richmond

DFW explodes into mid 2019 with 30 Million SF under construction. As an FYI, this is comprised of 101 new buildings. 10 of these new buildings (about 5.7 Mil SF) are Build to Suit facilities and 91 of them (24.7 Mil SF) are being built on spec. This is an extraordinary amount of concrete.

DFW finished Q2 2019 with 6 Mil SF in Total Industrial Absorption bring YTD absorption number to a rock solid 13 Mil SF. Our 850 Mil SF market is hovering at 6% vacancy which is very healthy.

Rates are holding steady in the Big Box market (250K SF +) in the $3.80 psf NNN range while Non Big Box product continues to experience high levels of demand as rates have skyrocketed from $4.50 in Q2 2018 to $4.90 today.

DFW market activity remains strong with 3 different 1 Mil+ SF deals getting signed so far this year. Multiple other 250K SF+ monster deals keep slamming down with consistency trying to help our absorption numbers stay in line with the absolutely staggering amount of product that is being developed.

We are keeping our heads down and working hard to continue helping our customers meet the ever-growing demands of Speed and Flexibility in their supply chains in an effort to maximize corporate real estate value and efficiency.

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

Q1 2019 TOP TEAM RICHMOND PROJECTS

    • Ace Hardware – Wilmer, TX – 900,000 SF
    • FNA – Mesquite, TX – 400,000 SF
    • 4000 Dan Morton Dallas, TX – 208,948 SF Investment Sale
    • TForce FInal Mile – Elk Grove, IL – 87,600 SF
    • Schenker International – S.A. de C.V. – Juarez, MX – 86,627 SF

Q1 2019 TOP DFW DEALS

    • El Pedregal S.A. Food & Beverage distributor lease 1.54M SF at DFW Airport from Bandera
    • Callaway Golf leased 783,000 SF in Fort Worth from Hillwood
    • Systemax leased 489,804 SF at 2119 N I-35 N in South Dallas from Hillwood
    • Petmate leased 468,300 SF at Park 20 in Lancaster from SV Captial
    • Capstone Global LLC renewed 248,096 SF in Arlington from Emerik Properties

Key Takeaways

Construction has not stopped rental rates from increasing as rates bounced back from last quarter’s decline to come in at $3.80 this quarter.

Despite all of the construction activity, the vacancy rate remains strong at 10.5%. While leasing activity has been robust thus far, only 22% of the speculative development has been pre-leased, leaving close to 15 million SF of new space to come on the market.

“Go Big-Box or go home” continues to be the mantra in DFW with several new buildings kicking o during the quarter. These new builds are keeping the under construction pipeline of close to 24 million SF in record territory for the metroplex.

Absorption of almost 9 million SF through mid-year 2019 is on pace to eclipse the 2017 record of 18.8 million SF.

MEET THE TEAM MEMBERS

Ward Richmond has over twelve 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.

WARD RICHMOND, SIOR
Executive Vice President

COLE HOOPER
Senior Associate

ZACK RUTLAND
Associate

JAMES EWING
Associate

KRISTINA RODRIGUEZ
Client Services Specialist

The Gladiator Group is supported by Colliers International Research Team

ON THE ROAD AGAIN

Sept 4 2019: Annual Interface DFW Industrial Conference, Dallas, TX
Sept 14-18 2019: IAMC Fall Forum, Milwaukee, WI
Sept 24-27, 2019: Colliers International Supply Chain Conference, San Diego, CA
Oct 8-9, 2019: Keller Logistics Customer Summitt, Deance, OH
Oct 15-17, 2019: Armstrong 3PL Conference, Chicago, IL
0ct 26 2019: Arete Live, St. Louis, MO
Nov 8-11, 2019: Summit LA19, Los Angeles, CA

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Food and Beverage Industry Continues to Grow but 3PLs Dominate Activity in First Half of 2019

July 23, 2019 Market Reports 0 Comments

Occupier activity across the Unites States continues to be robust, but it is not on par with the same time a year ago in bulk industrial space (100,000 square feet and larger).

Food and Beverage Industry Continues to Grow but 3PLs Dominate Activity in First Half of 2019

By James Breeze

Occupier activity across the Unites States continues to be robust, but it is not on par with the same time a year ago in bulk industrial space (100,000 square feet and larger). In the first half of 2019, 1,142 industrial (warehouse, manufacturing, flex) new leases, renewals and user sales were transacted, totaling 266.7 million square feet, a 12.6% decline from the first half of 2018. The average size of a bulk transaction was 234,000 square feet, much lower than the 261,000-square-foot average this time last year.

While e-commerce-only occupiers, like Amazon, remain on the top of minds of industrial landlords, they only made up 10% of the transactions signed in the past 12 months — in line with the percentage of total retail sales e-commerce accounted for. The top occupier remains third-party logistics and packaging companies (3PLs), signing 67 million square feet of transactions, 25% of the total transactions signed. 3PLs, who offer logistics and warehousing services for retailers and wholesalers who choose to outsource, remain the top occupier of industrial space because of the sheer volume of companies who service every industry in the business. While 3PLs were the top overall occupier, the food, beverage and pet supplier industry grew the most compared with the previous year, at a rate of 6.5% and they were the only occupier type to post a growth in year-over-year transactions.

E-commerce-only occupiers continue to require buildings much larger than other occupier types, as the average e-commerce transaction the past year totaled 422,903 square feet, nearly double the overall average transaction size for a bulk industrial building but much lower than the 510,840-square-foot average in the first half of 2018 because of a decline in transactions larger than one million square feet. For the 19th consecutive quarter, Amazon was the top e-commerce and overall occupier of industrial space, with a year-to-date total of 9.3 million square feet.

The Midwest beat out the Southeast as the top region of choice for bulk industrial occupiers, with 32% of the bulk transactions signed in the region. Both industrial and manufacturing occupiers continue to move into the market in droves because of the region’s pro-business climate and significant logistics advantages. The Southeast region is still doing well as occupiers move into the region to support the growing population. At the time of this report, more than 70 million people lived in the Southeast region, and this is expected to grow by a nation-leading 7% over the next five years. The West region finished in third thanks to continued strong demand in the Inland Empire, which remains one of the top markets in the country for bulk leasing activity.

Transaction volume for bulk industrial space will remain robust over the next 12 months because of occupiers’ increasing need for both regional and final-mile bulk distribution centers. While 3PL and retail-related distribution volume will remain robust, look for the strong growth that was showcased in the food and beverage industry to continue, as many of these occupiers are looking to expand and modernize their distribution and manufacturing networks. Population growth will keep occupiers in all industries looking at space in the Southern and Western portions of the U.S., while improvements and expansions of inland and coastal logistics hubs as well as strong domestic manufacturing in the Northeast and Midwest will keep demand strong in these regions for the foreseeable future.

Company Type Description:

    • Construction, Improvement and Home Repair – Warehousing and distribution of materials used in residential and commercial construction, improvements and repair, could contain some e-commerce components.
    • Data Centers, Tech and R&D – The use of industrial space for data centers and non-pharmaceutical R&D purposes.
    • E-Commerce Only – Warehousing and distribution of product that is ordered online and shipped directly to the end consumer only.
    • Food, Beverage and Pet Supply – Manufacturing, warehousing and/or distribution of food and beverage related products. Could contain some e-commerce or manufacturing components.
    • Furniture and Appliances – Warehousing and distribution of retail and/or wholesale furniture and appliance products. Could contain some e-commerce and or manufacturing components.
    • General Retail and Wholesale – The warehousing and distribution or retail and/or wholesale products not listed in any of the other categories. Could contain some e-commerce or manufacturing components.
    • Manufacturing – Industrial space used for manufacturing and/or storage of raw materials and equipment used in the manufacturing of non-automobile related products.
    • Motor Vehicles, Tires and Parts – The warehousing, manufacturing and/or distribution of motor vehicles, tires and related parts and materials.
    • Third Party Logistics and Packaging – Third party logistics (3PL) and packaging of a wide variety of products, could contain some e-commerce components.

James Breeze is the national director of Industrial Research for Colliers International, where he focuses on analyzing industrial property trends, compiling Colliers’ thought leadership and delivering timely market projections to provide clients with a leading edge in our industry.

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Listen to “Live from the eft Media Zone: Ward Richmond & Stacie Vroman” – SCNR Episode 113 in Podcasts

June 25, 2019 Podcast 0 Comments

A couple of weeks ago at EFT 3PL/ Supply Chain conference in ATL, I had the pleasure of making a guest appearance on the Supply Chain Radio Now Podcast...

Live from the eft Media Zone: Ward Richmond & Stacie Vroman

By Ward Richmond

A couple of weeks ago at EFT 3PL/ Supply Chain conference in ATL, I had the pleasure of making a guest appearance on the Supply Chain Radio Now Podcast. Please take some time and go check it out to hear us discuss all things Supply Chain Real Estate in the midst of the eComm explosion. I’ve been seriously considering and seriously procrastinating starting my own podcast for over a year so this was a super cool experience and despite the fact that I am a podcast rookie, I’m proud to say that I sound smarter than I actually am!😉 So- After you listen, let me know: Should I start my own podcast?!

Listen to “Live from the eft Media Zone: Ward Richmond & Stacie Vroman” – SCNR Episode 113 from June 19, 2019 in Podcasts.

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DFW Market Update – Q1 2019

May 13, 2019 Market Reports 0 Comments

Once again, DFW Industrial blasted into the year with a powerful army of tenants taking down millions square feet of modern bulk distribution space!

The Rise of the Planet of The Big Bombers

By Ward Richmond

Once again, DFW Industrial blasted into the year with a powerful army of tenants taking down millions square feet of modern bulk distribution space! The staggering numbers displayed by the DFW market solidifies our spot at Number 1 in the USA in 2019 in Absorption, Product Delivered and Product Under Construction.

I don’t mean to sound like a non-humble bragger, but I just report facts and the fact of the matter is that our market is explosive and we have established ourselves here in DFW as a premier global distribution hub.

DFW finished Q1 2019 with 6.5 Mil SF in Total Industrial Absorption. This level of absorption accounts for about 1/3 of total absorption we saw in 2018. We kicked the final year of the decade off by delivering almost 8 Mil SF of new product with another 25 Million SF currently under construction as we our vacancy rate hovers at a healthy Mid 6.

Our Colliers Dallas office alone represented three different companies for 1 Million SF space requirements in Q1 2019 and 2 of the 3 deals have successfully closed. Multiple other massive unannounced projects are secretly circling the market and inking deals as I write this sentence.

USA Wide, absorption numbers are actually down with 39.2 Mil SF absorbed in Q1 2019 which is the lowest quarter on record since 2012. That has not stopped USA industrial rental rates from pushing to record highs with an average of $5.89 psf. US vacancy rate is riding low at 5% while the song “Lowrider” plays on construction sites everywhere as workers build 294 Mil SF of space which is an all-time record.

We look forward to seeing what happens this summer as eComm continues to replace traditional retail, WalMart continues to chase down Amazon, the trade negotiations with China drag on and the labor market continues to tighten.

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

Q1 2019 TOP TEAM RICHMOND PROJECTS

    • DB Schenker – DFW Airport, TX – 130,270 SF
    • Keller Logistics – Dallas, TX – 204,000 SF
    • Keller Logistics – Napolean, OH – 410,000 SF
    • Keller Logistics – Salt Lake City, UT – 120,000 SF
    • Daltile – Dallas, TX – 76,892 SF

Q1 2019 TOP DFW DEALS

    • Georgia Pacific leased 1 Mil SF at Intechange 20/45 in South Dallas from USAA Rael Estate.
    • CTDI leased 705K SF at Elizabeth Creek Gateway in Front Worth fron Transwestern Investment Group.
    • Samsung Electronics renewed 552K SF at 400 Dividened DR in Coppell from Duke Realty.
    • Hollingsworth Logistics leased 494K SF at 14900 Frye RD in Fort Worth from Prologis.

Key Takeaways

New construction and deliveries did not affect the overall vacancy rate as it held steady to last quarters rate of 11.3%. Expect that number to rise over the year as much of the speculativeunder construction inventory is set to deliver later this year.

Since 2010 the DFW has been the Big-Box inventory increase by over 200 buildings totaling 100M SF. For Context, in 2010 there was Big-Box building that was under construction during the entire year while in Q1 2019 alone, there were 40 building with a DLF quarterly record combined square footage of close to 25M SF.

Rental rates, although still strong at $3.75 NNN, did slide down $0.08 from last year’s record high of $3.83.

Absorption had a strong start to the year with over 3.4 million absorbed on Q1 2019.

MEET THE TEAM MEMBERS

Ward Richmond has over twelve 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.

WARD RICHMOND, SIOR
Executive Vice President

COLE HOOPER
Senior Associate

ZACK RUTLAND
Associate

KRISTINA RODRIGUEZ
Client Services Specialist

ON THE ROAD AGAIN

May 8-10, 2019: CLDA – Phoenix, AZ
May 20-22, 2019: ICSC, Las Vegas, NV
June 10-12, 2019: EFT, Altanta, GA
Sept 14-18, 2019: IAMC, Milwaukee, WI
Sept 25-27, 2019: Colliers International Conference, San Diego, CA
Oct 15-17, 2019: Armstrong 3PL Conference, Chicago, IL
Nov 8-11, 2019: Summit LA19, Los Angeles, CA

The Gladiator Group is supported by Colliers International Research Team

2018 3PL ROBUST ACTIVITY

“Occupier activity across the Unites States continues to be robust, particularly in bulk industrial space 100,000 square feet and larger…”

“The average size of a bulk transaction was 266,000 square feet—much higher than the 242,000 square feet average the previous year. The increase in size range was a direct result of third-party logistics and packaging companies (3PLs) and automotive-related companies taking larger chunks of space compared with the same time last year.”

– Occupier Activity Remains Robust in 2018 Thanks for 3PL Activity, James Breeze, 17 Jan 2019

CONTACT WARD RICHMOND AT:

Office 214.217.1201
Mobile 214.336.5757
Email [email protected]

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U.S. Industrial Overview – Year End 2018

April 9, 2019 Market Reports 0 Comments

The U.S. industrial market finished 2018 with 276 MSF of overall net absorption, the second highest rate on record.

James Breeze, National Director of Industrial Research

By James Breeze

U.S. Industrial Posts Second Best Year on Record

    Core Markets Dominate Leading to Robust Fundamentals

    • The U.S. industrial market finished 2018 with 276 MSF of overall net absorption, the second highest rate on record.
    • Overall vacancy rates remained low at 5.0%despite another year of robust new development, which finished 2018 at 263 MSF completed.
    • The Inland Empire dominated 2018 with 25.4 MSF of net absorption. The region also led the nation in new construction at 26.5 MSF.
    • Direct asking rents continue to increase finishing at an alltime high of $5.75 psf/yr for W/D space.

U.S. Industrial Markets Existing Inventory

U.S. Industrial Overall Vacancy Rate Breakdown Q4 2018

U.S. Top 10 Rankings 2018

Occupier Demand Driven by 3PL and E-Commerce

    • While e-commerce continues to get all the press, the top occupier of industrial space remains third-party logistics and packaging companies (3PLs) who signed nearly 115 million square feet of industrial deals the past 12 months, 31% of the total transactions signed.
    • While E-Commerce only occupiers signed 11.4% of the new deals in 2018, they required the largest buildings as the average e-commerce transaction the past year totaled 496,000 square feet, nearly double the overall average transaction size for a bulk industrial building.
    • Manufacturing occupiers continue to expand within the U.S. and have the potential to be one of the top growing industrial occupier types if trade issues are settled in the coming quarters.

Top 10 Occupiers of Space in the U.S. in 2018

E-Commerce Forcing Occupiers to Expand and
Modernize Supply Chain

    • U.S. e-commerce sales rose an impressive 14.5% in Q3 2018 compared with the same time last year and now represent 11.1% of non-auto total retail sales.
    • The continued surge in online sales and the need to get products to consumers quickly while minimizing supply chain costs are forcing retailers and wholesalers into more facilities throughout the country and rapidly changing supply chain strategy.
    • These changes will be a major contributor to industrial real estate demand for the foreseeable future.

Overall Net Absorption Positive for 35th Consecutive Quarter

Asking Rents Reach All-Time Highs But Remain A Small Portion of Overall Costs

Warehouse/Distribution Development Booming Because of Occupier Requirements

Since 2010, a whopping 1.2 billion square feet of warehouse product has been completed across the U.S. The top reason for this massive amount of development is the changes in supply chain because of e-commerce. Occupiers require different functionalities than many buildings completed before 2010 possess.

U.S. Industrial Sales Activity Overview

    • The industrial sector was firing on all cylinders in 2018. $92.4 billion worth of transactions were completed, over 70
      MSF of which was in Warehouse/Distribution facilities, an all-time record high. Sales prices also continue to rise with
      average price psf up 7.9% from a year ago.
    • Despite the turmoil in the financial markets, cap rates were largely unchanged-to-flat from a year earlier in Q4’18. Cap
      rates for flex assets averaged 6.7% in Q4’18 and a year earlier. Warehouse cap rates fell 20 bps over the last year
      though, to hit 6.3% in Q4’18.
    • There are warehouse assets in the market today trading at cap rate levels like those seen for office towers in
      Manhattan. Large distribution facilities with Amazon as a tenant have traded in the 4%-5% cap rate range. Larger
      buildings are also producing lower cap rates with buildings over 500,000 square feet selling at an average cap of 5.8%
      in 2018
    • Looking ahead, investors will continue to focus on secondary and tertiary markets because of easier opportunities of
      entry compared with core markets. Markets with large quantities of urban warehousing with high rents and low
      vacancies, including Seattle, Washington D.C., the NY Boroughs, Los Angeles and South Florida, will also enjoy
      increased owner interest, especially in “opportunity zone” designated areas.

U.S. Industrial Sales Activity Overview – Total Warehouse/Distribution Volume

U.S. Warehouse/Distribution Sales Activity Overview – Cap Rates and Avg $/sf

E-Commerce and a Solid U.S. Economy will Drive Demand

    • Industrial real estate will continue to prosper in 2019 with robust development, as well as strong
      positive absorption, and continued record low vacancy rates and record high asking rental rates.
    • Demand from 3PL’s and E‐Commerce occupiers will remain high, however we will see the biggest
      increases in new transactions from Manufacturers and the Food and Beverage industry.
    • Occupiers and investors will focus expansion on markets with high population concentrations,
      availability of labor, close proximity to major rail hubs, air cargo ports, seaports, and markets with
      economical rents and pro‐business environments.
    • Look for markets including St. Louis, Minneapolis, Savannah, Greenville, Las Vegas, Shenandoah Valley,
      Sacramento, the I‐4 Corridor, Seattle and the Lehigh Valley to experience the largest growth in activity
      and investor demand in the coming quarters.
    • Headwinds to look out for: Weakening Global Economy, Declining Home Sales in U.S., Labor Shortages,
      Disruptions to Global Trade.

Changes Coming

    Greater focus on creative industrial

    • Increasing Consumer Expectation for Speed
    • Lack of Qualified Labor
    • Transparency
    • Automation
    • Gig Economy
    • Threat of Amazon
    • Transportation Changes
    • Automated Vehicles/ Trucks
    • How to Control the Cost of the Last Mile

    Bigger Hubs & smaller/closer last mile

Occupiers and Owners are Trying to Solve the Final-Mile

    • As consumers increasingly expect that their e‐commerce orders are fulfilled and delivered in two days or less,
      demand for closer “in‐town” smaller final‐mile fulfillment centers is exploding.
    • It is this segment of the supply chain – getting the order to the end consumer – that overwhelmingly is the most
      expensive portion of the total transportation costs.
    • Final‐mile distribution centers tend to be near highly‐populated areas to access as many customers as possible.
      This is the primary value of the site.
    • In many populous areas however, industrial markets are mature and provide relatively few options for
      distribution needs. This is forcing occupiers to get more creative, and use more in‐depth location analysis than
      ever before.
    • In many markets, functionally obsolete industrial or converted retail space is being absorbed because of the
      ability to quickly reach end users is more important than building amenities when it comes to the final‐mile.

Occupiers and Owners are Trying to Solve the Final-Mile (cont.)

    • Use mapping, supply chain, national research, and marketing resources to analyze the final-mile.
    • The final-mile can be different in every market, there is no set answer.
    • We are starting a series of final-mile reports that will eventually encompass most major markets.
    • Los Angeles Basin and New Jersey Corridor Final-Mile Reports were released in 2018 and plans are in the works for other major metro reports in 2019.

The Availability of Labor will be Integral to Site Selection

    • With the U.S. economy near full employment and the industrial market needing more workers due to ecommerce, intensifying warehouse demand, and many occupiers are having difficulty finding adequate labor.
    • This trend could have a negative effect on markets with a shortage of industrial labor and could be a boon to markets with an adequate trained labor force in the coming quarters.
    • While the availability of labor will gain in importance in industrial site selection, look for the use of automation and other technologies to increase as a way of combating labor shortages throughout the country.

Tariffs Could Impact Markets Differently Based on Geography

The U.S. industrial market is heavily reliant on international trade. Because of this, tariffs on imports and counter tariffs on exports could lower demand for industrial real estate.

Tariffs could affect markets differently based on its proximity to ports and types on products stored. NAFTA, China, and Europe could all have more affects than others.

Many tariffs are currently affecting raw materials or finished materials that are not major occupiers or industrial products, but this could change, especially if tariffs are increased to 25%.

COLLIERS U.S. INDUSTRIAL RESEARCH REPORTS COMING SOON

    • 10 Emerging Markets to Watch in 2019 (February)
    • U.S. 2018 Year-End Report and Outlook (March)
    • North America Big-Box Report and Outlook (March)
    • Planning the Final-Mile – Chicago (April)
    • U.S. Seaport Outlook (May)
    • Blogs on Opportunity Zones, Labor, External Indicators and Market of the Month Profiles

JAMES BREEZE
NATIONAL DIRECTOR OF INDUSTRIAL RESEARCH
(602) 222-5184
[email protected]

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Power Broker of the Year

March 12, 2019 Success Stories 0 Comments

Commercial real estate brokers are changing the way they do business. These are the ones at the top of the game

The brokerage business is changing, and it’s producing a new breed of brokers capable of fielding the increasingly complicated needs of clients in today’s market. The professionals melding data and new technologies with the high-level of service customers are demanding are the ones at the top of the industry. For the first time in the eight-year history of D CEO’s Power Brokers program, we’ve selected outstanding commercial real estate professionals to honor in eight specialties.

Ward Richmond - Colliers International

Industrial Tenant Rep

Ward Richmond is a recognized leader in the industrial sector and oversees multiple national accounts. He has developed a strong understanding of supply-chain real estate through negotiating more than 500 transactions in 50 cities around the globe. He was Colliers International’s top Dallas producer in 2018.

“A key strategy of mine has been to work closely with business and life coaches. I also regularly attend seminars to elevate my game. … The industrial market has been riding the monster tidal wave of activity generated by rapid eCommerce growth for a long time. And so far, 2019 already has the pedal to the metal. … My advice to young brokers is to be disciplined about your approach to your goals and adjust as needed—but do not quit.”

Terrence Maiden - Corinth Properties

Community Impact

Since graduating from Texas Christian University (where he and his twin brother were standout football players for the Horned Frogs), Terrence Maiden has focused his distinguished real estate career to benefit the southern sector of Dallas, where he’s now leading development of the former Red Bird Mall. He’s also co-founder of the nonprofit Two-Wins Foundation.

“My philosophy is people-first. Being in an industry like real estate, which is often driven by profit and wealth, I always remind myself who we are doing this work for—the community. I am motivated by knowing that my efforts each day can impact people for generations to come. It’s a huge responsibility. … My advice for young brokers is to trust the process. Half the battle is staying committed to the industry through the highs and lows.”

Steven A. Lieberman - The Retail Connection

Retail
Steve Lieberman knows how to juggle. He leads his company as CEO while also consistently ranking as one of the nation’s top retail brokers. He pioneered the use of data mining in retail real estate and has long worked to solve inefficiencies in the sector. Last year, Lieberman closed more than 650,000 square feet in transactions valued at $350 million.

“Looking back on my career, I’m most proud of representing Bed Bath & Beyond, our development of Arlington Highlands, the redevelopment of Village on the Parkway, and the opportunity ahead with the Knox District. … A key strategy has been knowing that the best team wins. Partner, align with, inspire, leverage, and reward the best team possible, as all collaborations are connected and cumulative.”

Mark Allen - SVN | Investment Sales Group

Rookie of the Year

After attending the U.S. Military Academy at West Point, playing Division 1A football, and serving as an officer in the U.S. Army, Mark Allen pursued a career in commercial real estate, joining SVN to specialize in multifamily investment sales. In under two years, he has closed more than $250 million in commercial property transactions.

“A week into my career, I secured a listing from a referral in Appleton, Wisconsin. It was a small multifamily community in a market I’m not familiar with, and it was my very first transaction. I knew I could sell anything after that. … I’ll never forget the advice I was once given by Roger Staubach: ‘Prospect, prospect, prospect, and meet with at least two potential clients per week.’ Although this advice is simple, it has paid off.”

Tony Creme - Hillwood

Industrial Project Leasing

A 21-year Hillwood vet, Tony Creme has been a key player in the growth of AllianceTexas. During his tenure, it has grown from 50 industrial tenants to more than 500. Last year, Creme brokered 3 million square feet in lease deals, launched 4 million square feet of spec space, and led the acquisition of 500 acres of new industrial land.

“The value of working hard was instilled in me at an early age. I learned there is no substitute for putting in the time and effort necessary to succeed. … I have been with Hillwood my entire career. I’m fortunate to regularly interact with the leadership team, and I continue to learn from them every day. … The fundamentals of the overall industrial market are still very good, and 2019 will be a great year, especially in North Texas.”

Lynn Dowdle - Dowdle Real Estate

Commercial Property Sales

After a long career in the retail division of the former Staubach Co., Lynn Dowdle went off on her own in 2011 to forge a new area of specialization: hotel site selection. Last year, she closed 21 sales valued at more than $44 million—all hotels, with the exception of Music City Frisco. An active industry volunteer, she also recently served as president of NTCAR.

“This business is not for sissies.It often takes a ton of perseverance and fortitude to get the tough ones done. … If I go into each transaction knowing I can accomplish my goal of creating value, there’s usually no stopping me. I believe reputation is everything, so I’m very intentional about the way I transact. … My advice for young brokers is to work hard, work smart, and don’t expect to be an overnight success. That can take about 20 years!”

Chris Taylor - Cushman & Wakefield

Office Project Leasing

Office property owners across the region trust Chris Taylor to lease up their space. With good reason. He was the top-producing broker across all business lines for the Dallas office of Cushman & Wakefield in 2018. Taylor closed more than 1 million square feet in lease transactions and helped bring two projects to 100 percent occupancy.

“I’ve always strived to develop sincere business relationships and friendships, to be persistent, work hard, be consistent and honest in my business dealings, and always put the interests of my clients first. … I have had several great mentors throughout my career, but Johnny Johnson and Bret Bunnett have had the greatest influence on me. … My advice for young brokers is to always remember that this business is a marathon, not a sprint.”

Jeff Ellerman - CBRE

Office Tenant Rep

Throughout his 35-year career, Jeff Ellerman has had a hand in many of the region’s largest and most notable office leases, negotiating more than 30 million square feet of deals valued at more than $14 billion. Last year was another blockbuster for CBRE’s top producer, with headquarters leases for AT&T, Fossil, Merit Energy, MetroPCS, and Kosmos Energy.

“The commercial real estate game is long, and you have to show up every day hungry, committed, and disciplined. I’m motivated by the chase of the next deal and executing the best possible outcomes for clients. … Other than the safety of my family, my greatest fear is losing my competitive edge. … My advice for brokers just getting started in the business is to stay focused and disciplined—and keep making those calls.”

Dave Anderson - CBRE

Lifetime Achievement Award

Dave Anderson is a real estate rock star. He’s a vice chairman at CBRE, one of just three industrial brokers worldwide to earn the title. During his 35-year career, he has put together more than 1,000 deals, totaling 100 million square feet of space and 10,000 acres of land. Last year, he closed 8.5 million square feet in transactions for a combined value of more than $350 million. This would be notable for any broker, but even more so for Anderson, who did it while in a third year of a fierce battle with pancreatic cancer. D CEO is proud to honor him with its first-ever Power Brokers Lifetime Achievement Award.

What deal are you most proud of?

“It’s difficult to select just one. However, a transaction our team closed last month for a 1.2 million-square-foot build-to-suit for Goodyear has to rank high on the list. It involved site selection over a broad area, labor and transportation analysis, tax analysis, and negotiations of incentives, including infrastructure upgrades. Perhaps as rewarding as the end results we achieved (and subsequent pay day) was an email from the client during the process saying within the first five minutes of meeting me, he knew I was the right guy to handle the job.”

Why do you love what you do?

“I love tackling the challenges each transaction brings, but what I value most is the people in our industry. My associates with CBRE, quality competitive brokers with high morals, the best developers in the nation, and a strong array of investors. Trust me, that is not true in most cities.”

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Come on in, the KoolAid is fine!

March 5, 2019 Life Coaching, Etc. 0 Comments

In the Summer of 2016, my brother-in-law, James attended Tony’s most popular seminar, Unleash The Power Within, when it rolled through Dallas/ Ft. Worth

An Open Letter To The Skeptics and Haters of Tony Robbins: Part 2

By Ward Richmond

In the Summer of 2016, my brother-in-law, James attended Tony’s most popular seminar, Unleash The Power Within, when it rolled through Dallas/ Ft. Worth, where we live. When he told me about the experience, and the cost associated with it, my eyebrows raised.

I threw out a few skeptical questions letting him know that I do not need to attend seminars to be a high performing businessman.
When he told me that he walked on coals, all I could muster was, “You have got to be kidding me, bro!”

About 6 months later, I picked up the Tim Ferriss masterpiece Tools of Titans which quickly became my favorite book of all time. In Tools of Titans, Tim profiles Tony Robbins.

I had to re-read this chapter a few times because I needed to establish Certainty (Certainty is one of the 6 Basic Human needs) that I had fallen in Love with a man (Love & Connection is another).

Had I lost my damned mind?!

The next thing I knew, I started googling Tony Robbins and looking into seminars. I read Awaken The Giant Within and then I watched the Netflix documentary, “I Am Not Your Guru”.

Then, after about 4 phone calls with the Tony Robbins organization, I wrote a check for $10K to attend Business Mastery in Las Vegas which is a 5 Day Seminar Tony leads that is specifically built to help business owners take their sh*t to the next level.

After Business Mastery, I was hooked. No need to bore you with the details but I continued with coaching for 18 months and attended multiple other seminars, walked on fire and even got to meet the big guy a couple of times!

If you are a skeptic or a hater, I double dog dare you to make an investment in yourself and get with the Tony Robbins program. I will personally guaranty that if you attend one of his seminars with an open mind and you are HUNGRY, you will learn at least one simple actionable item that will positively impact your life and thought process.

6 Of My Favorite Things We Discuss At Tony Robbins Seminars:

  • 1) Mindfulness. We learn and reinforce a lot of simple actionable items that help me to attack my days in a strategic manner with certainty and confidence. I’ve picked up new habits like reading a lot of books. I have embraced Meditation. I’ve learned the value of taking ice copld showers which I now do almost every day. His nutrition coaching has made me acutely aware of the physical and psychological impact of what I am putting into my body. My time management skills have been taken to the next level. I have mindfully shifted my focus from fear of not being successful to a hyper focus on Value Creation. I now know that if you create value, you will receive. It is that simple. There’s no need to worry about anything else. There is so much more but these are just a few examples.
  • 2) The 6 Basic Human Needs.
    Growth
    Contribution
    Certainty
    Variety
    Significance
    Love & Connection

    We discuss that by understanding and focusing on meeting these needs of the people in your life and the customers of your business, you will absolutely crush it.

  • 3) Physiology. We discuss how our posture, energy level, and physicality directly impacts our ability to make decisions which determines our actions and therefore our results in life.
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  • 4) Stress = Fear. We discuss how “stress” is nothing but the achiever’s word for “fear”.  Are you stressed, bro? Nope- you are just scared!! The first step is recognizing that you have this problem. Then, smash your fears and limiting beliefs and stop being stressed. As Grant Cardone might say, “Don’t be a little b*tch!”
  • 5) Suffering. We discuss how “suffering” aka anger, frustration, worry is all in your head and within your control and how living in a state of suffering will be ultimately detrimental to your ability to make decisions and achieve favorable results (in life and business).
  • 6) Winter Is Coming. We discuss how “winter” aka a recession is undoubtedly coming our way and why it is critical to understand all of the value and opportunity that becomes available when we are in the midst of a recession. The best example of these opportunities are the number of quality companies that began in the depth of a recession, like FedEx, Apple and ExxonMobil – to name a few.

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Hi Mom- I joined A Cult!

February 18, 2019 Life Coaching, Etc. 0 Comments

No- I did not really join a cult, Mom! I am not a naïve guy. I am well aware that some people roll their eyes when I start passionately talking about how Tony Robbins changed my life. I know. It’s OK, though.

An Open Letter To The Skeptics and Haters of Tony Robbins: Part 1

By Ward Richmond

No- I did not really join a cult, Mom!

I am not a naïve guy. I am well aware that some people roll their eyes when I start passionately talking about how Tony Robbins changed my life. I know. It’s OK, though.

I used to be that skeptical, eye rolling guy.

Now, I’ve morphed into that other guy: The “Tony Robbins guy”!

Oh, Holy Shit! I still laugh out loud about this strange occurrence and wonder WTF has happened to me?!

Quite literally, just 3 years ago, I would have laughed you out of the room if you told me I was about to become a living, breathing, fire walking, student of Tony! But hey- life is weird and people change.

All of that being said, I know that we have a lot of Tony Robbins haters out there in this world and I am certain that the world would be a better place if this was not the case.

There are also a lot of people out there who undoubtedly think I am a whack job for writing this blog, and posting motivational quotes on Instagram on a weekly basis and literally spending tens of thousands of hard earned dollars on coaching and seminars over the last few years.

That’s OK though. The ROI has been significant and Significance, according to Tony “F**kin” Robbins is one of the 6 Basic Human Needs so I recommend you GET YOU SOME!

These days, I like to talk about my man crush on Tony during my business presentations. This is typically the first slide of my presentation deck, no less!

Don’t be hatin’, bro, just keep readin’ and I’ll tell you how it plays out and why I do this crazy sh*t!

The Four Types of People I Meet When I Talk About Tony Robbins In A Business Presentation:

  • 1) The Fellow Cult Member. When I drop my Tony slide on a fellow cult member, lightning strikes (in a good way!). If you get it, you get it. If you are speaking to a likeminded beast who has hardwired their brain to think the way Tony Robbins thinks, the odds of closing the deal have drastically increased. An immediate bond has been formed and we both know that we are dealing with a high performing, hungry, value creation obsessed individual. Boom!
  • 2) The Empathizer. The Empathizer is the type of person who may not necessarily drink the Tony Robbins “KoolAid” but still appreciates working with a “Tony Robbins guy”. These smart business leaders will quickly acknowledge that they are dealing with a passionate, nerd who is into self-help and recognize this as a potential asset to their organization.
  • 3) The Skeptic. As mentioned, this used to be me. While skeptical, The Skeptic can still be turned when I explain that I tripled my income within 24 Months after I started working with Tony and I began implementing his coaching into my life. ***There are lots of other neat tricks I have learned from Tony other than money making but the story of massive revenue growth fascinates most human beings and can turn most skeptics on a dime.
  • 4) The Hater. This is the dude or dudette that cannot and will not be turned. The polar opposite of the Cult Member. Their mindset is: “Self-Help is for losers. Tony Robbins is a snake oil salesman and this guy talking about him is a f**king idiot. What is he thinking?!”

That’s OK though!! Because, believe it or not, this still creates a Win/ Win scenario for me:

Win Scenario #1: I still get hired because I am a total badass at what I do!

Win Scenario #2: I don’t get hired but I also don’t have to work with a close minded hater who thinks I’m an idiot! This is seriously an incredible thing and even if I don’t win the business, it will positively impact my life in the long run.

As mentioned, I know about these haters and skeptics because I used to be one. And- it wasn’t that long ago! Which category do you fall into? Do you think I left something out? Let me know!

In Part 2 of this blog I will tell you about all of the cult like things we discuss at a Tony Robbins seminar so you can get a taste of the KoolAid!

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DFW Market Update – Q4 2018

February 8, 2019 Market Reports 0 Comments

2018 came to a close and we have seen another year of tremendous industrial real estate activity in the DFW Metroplex.

All We Do Is Win, Win, Win, No Matter What, What What!

By Ward Richmond

2018 came to a close and we have seen another year of tremendous industrial real estate activity in the DFW Metroplex. Not to mention, the world!

My sentiments about 2018 are nothing other than warm and fuzzy! We are a very grateful group of Gladiators! We did not set absorption records; nevertheless, activity was undoubtedly strong and steady. Please, keep in mind that what I call “steady” might be described by others around the world as “absolutely freaking explosive.”

DFW finished the year with just over 19 Million SF in Total Industrial Absorption, while delivering almost 25 Million SF of new product with another 23 Million SF under construction as we maintain a vacancy rate in the Low 6’s at 6.3%. Big Box rates have bumped up from $3.75 to $3.82 to reflect Investor confidence in the market as well as the inevitably rising construction and material costs.

Consumerism continues at an all-time high; hence, the absurd demand for Big Box Distribution Centers. We also expect to see a major spike in shipping numbers for Q4 2018 due to distributors trying to get as much product as possible into the USA before the new proposed trade tariffs take effect.

Third Party Logistics companies (3PL’s) need to be held responsible for the bulk of industrial leasing activity as they fight to keep Brands profitable and alive in the Age of Digital Commerce by providing their customers with modern distribution solutions.
3PL’s lead the way nationally accounting for about 30% of the USA “big box” (100k SF+) industrial absorption in 2018 signing 115 Million SF of bulk distribution deals! Other key contenders responsible for absorption in 2018 include Retail, Manufacturing and eCommerce companies.

If you are a Retail Brand and you can’t figure out how to ship your product to customers via next day delivery (Think, Toys R Us), you are going to lose your customer base to Amazon. End of story. The only way to fight back and battle Amazon is to have an Amazon-like distribution infrastructure which is impossible for any brand to duplicate (unless that brand is WalMart) and that is the value gap being filled by these solution-hungry 3PL’s as they continue to take down space like a pack of Amazonian warriors!

2018 was an incredible, record year for our team. We closed over 4 Million SF of transactions, globally, as we continue to be recognized for our ability to deliver innovative corporate real estate solutions to dominant Logistics, Retail and Manufacturing companies. We plan to continue to build and grow in 2019 while develop new, massive value offerings for our customers.

Call me anytime to discuss Industrial Real Estate solutions, Supply Chain & eCommerce trends or even if you just want to talk about Tony Robbins!

“If you’re not getting better, you’re getting worse. Staying the same isn’t an option.”

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

2018 TOP TEAM RICHMOND PROJECTS

    • Keller Logistics – Dallas, TX – 472,000 SF Sale
    • USA Shade – DFW Airport, TX – 173,110 SF New Lease
    • Palmer Logistics – Dallas, TX – 157,467 SF New Lease
    • TForce Final Mile – Irving, TX – 101,900 SF New Lease
    • DB Schenker – DFW Airport, TX – 130,270 SF Renewal

2018 TOP DFW DEALS

    • Mars Petco leased 1.5 Mil SF from Bandera Ventures landing just South of DFW Airport.
    • Black & Decker leased 1.2 Mil SF at Alliance Airport from the mighty, helicopter flying, Hillwood
    • Home Depot leased 2.3 Mil SF from NorthPoint Development at Dallas Global Industrial Center in Dallas.
    • Amazon renewed 920K SF with GLP in South Dallas while simultaneously securing 395K SF with Port Logistics Realty just across I-45 in Wilmer, TX.
    • Amazon leased 855,000 SF from Hillwood at Commerce 30 just south of I-30 along Chalk Hill Road in the Cockrell Hill area of west Dallas.

Q4 2018 TOP DFW DEALS

    • Thirty-One Gifts leased 651,000 SF from Prologis at Prologis Flower Mound 1 in Flower Mound. – Dallas, TX – 472,000 SF Sale
    • Hill’s Pet Nutrition leased 594,000 SF from Principal Financial Groupa t Turnpike Distribution Center in Dallas.
    • Smith System lease 336,960 SF & 280,860 SF from Core5 at Valwood Crossroads in Carrollton.
    • Noble Cotton leased 470,000 SF from State Teachers Retirement System of Ohio at 1011 Isuzu Pky in Grand Prairie.
    • Staples renewed their 377,228 SF lease from LBA Realty at AmberPoint Business Park in Coppell.

Key Takeaways

Vacancy rose again for the sixth straight quarter and finished the year 1.8% higher than at the start of the year ending 2018 at 11.2%. This is the highest vacancy rate since Q1 2015.

Overall for 2018 the market delivered 41 Big-Box buildings for a total of 19.6 million square feet. These totals are second only to 2017 when 44 buildings with 22.4 million square feet delivered. Construction is still strong as well with 29 Big-Box buildings totaling 15.2 million square feet scheduled to deliver over the next 18 months.

Average rental rates were flat for the year ending at $3.82 by the close of the 4th quarter.

Absorption for the quarter was over 3.4 million square feet bringing the annual absorption to over 14 million square feet. This annual total is the 4th highest in the history of DFW Big-Box absorption.

MEET THE TEAM MEMBERS

Ward Richmond has over twelve 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.

WARD RICHMOND, SIOR
Executive Vice President

COLE HOOPER
Senior Associate

ZACK RUTLAND
Associate

ON THE ROAD AGAIN

March 10-13: IWLA – Savannah, GA
May 8-10: Colliers L&T Port Tour, Seattle, WA

BRAD BALKE
Associate

LIAM LOGAN
Senior Associate

KRISTINA RODRIGUEZ
Client Services Specialist

MIKE OTILLIO
Research Director

MAYA SHAW
Senior Associate

The Gladiator Group is supported by Colliers International Research Team

2018 3PL ROBUST ACTIVITY

“Occupier activity across the Unites States continues to be robust, particularly in bulk industrial space 100,000 square feet and larger…”

“The average size of a bulk transaction was 266,000 square feet—much higher than the 242,000 square feet average the previous year. The increase in size range was a direct result of third-party logistics and packaging companies (3PLs) and automotive-related companies taking larger chunks of space compared with the same time last year.”

– Occupier Activity Remains Robust in 2018 Thanks for 3PL Activity, James Breeze, 17 Jan 2019

CONTACT WARD RICHMOND AT:

Office 214.217.1201
Mobile 214.336.5757
Email [email protected]

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The GaryVee Audio Experience!

November 21, 2018 Podcast 0 Comments

I am excited as hell and humbled AF to be featured on the GaryVee Audio Experience this week.

The GaryVee Audio Experience!

by Ward Richmond

I am excited as hell and humbled AF to be featured on the GaryVee Audio Experience this week. I discovered Gary Vee a couple of years ago and had the opportunity to meet with him and his core team at Vaynermedia to discuss digital marketing strategies in 2018! The experience was mind blowing, to say the least.

I highly recommend that you listen to this podcast and let Gary do his thing and drop some serious knowledge on you.

DISCLAIMER & FOUL MOUTHED LANGUAGE WARNING: If you don’t know Gary (or me) – then you may not know that we both like to cuss like sailors when we talk on Podcasts. So, if that happens to offend you, please refrain from listening below and I recommend you go read my Q3 2018 DFW Industrial Market Report which does not have any cussing. Rather, it discusses why I am thankful for industrial real estate and how others find warehouses to be “sexy”.

This Podcast is titled INSIDE 4D’s: Episode 1 and was released on November 18, 2018. You can find it right here! http://askgaryvee.garyvee.libsynpro.com/inside-4ds-episode-1

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