• 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
pic
pic
pic
  • Loading stock data...

DFW Market Update – Q1 2018

DFW Market Update – Q1 2018

May 18, 2018 Market Reports 0 Comments 7 views

SUMMERTIME, AND THE LEASING IS EASY

By Ward Richmond

As we cruise into another hot Texas summer, I finally have had a moment to take a hard look at the Q1 2018 industrial numbers and I must say they look fairly weak compared to how we finished up 2017.

According to our high caliber research team at Colliers International, the DFW industrial market is holding steady at a 6% overall industrial vacancy. As a friendly reminder, 10% used to be the norm when I started in the business back in 2006.

While we only delivered about 3 Million SF in new product last quarter, we have another 24 Milly currently under construction which puts us on track to keep up with the great 28 million SF that we delivered in 2017.

The bad news is that we only had a little over 2 Mil SF in net absorption. At this rate, Landlords have to be getting a little bit nervous if they want to keep up with the 24 Millorama SF in net absorption we had in 2017.

Don’t worry though, guys and gals. I know what’s really happening out there and frankly, these absorption numbers don’t mean jack. My team alone is working on well over 5 Mil SF of assignments in DFW so all of you Landlords better stay focused, keep your eye on the ball and get ready to get aggressive and win these deals so you’re not left out in the cold with the dogs.

The beauty of DFW’s industrial landscape is that construction and absorption have been extremely well aligned during the longest and strongest bull market in commercial real estate history. This miracle allows landlords to stay fat and happy but also provides tenants with some pretty decent options and competitive economics. Everybody wins! We just wrapped up a few projects in LA and trust me, being a Tenant in Dallas is a cake walk compared to begging and fighting for subpar space in SoCal!

I predict that DFW will see some monster deals start slamming down this summer and when I report back after summer break, I’m hopeful that leasing will be clicking back on track to bust through the 20 Mil mark by Christmas.

Dallas, TX forever, y’all. Let’s do this!

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

Q1 2018 TOP DFW DEALS

    • Tellworks leased a 723K SF building at 4101 Research Drive in Arlington, TX.
    • Best Buy renewed a lease at their 600K SF facility located in DFW Airport/Flower Mound.
    • Exel Global Logistics leased 409K SF at 13601 Independence Pkwy in north Fort Worth.

Q1 2018 TOP RICHMOND TEAM PROJECTS

    • Keller Logistics – Dallas, TX – 472K SF – Sale
    • Marine Harvest – Miami, FL – 106K SF – Build to Suit
    • Indel Foods – Ennis, TX – 315K SF – For Lease

Key Takeaways

Big-Box deliveries were significantly lower this quarter with only four properties totaling 2 million square feet delivered. The construction pipeline, while lower than mid-2017 is still optimistic with 20 million square feet under construction, of which 70% is spec.

Vacancy for Big-Box product rose 0.1%, with vacant space increasing by 354,115 square feet. An increase in sublease space on the market caused the overall rise in vacancy, as direct vacancy was down 0.6% from the previous quarter, while sublease space increased half a percent.

Net absorption was significantly slower in Q1 2018 than activity in previous years. Total absorption was 1.6 million square feet. This was significantly affected by negative absorption from Restoration Hardware subleasing 858,000 square feet at 1303 W Pioneer Pky and 310,000 square feet of vacated sublet space in E DFW Airport.

Average asking rates for Big-Box product in Q1 2018 were $3.84 NNN, with a 1.3% increase quarter-over-quarter. Since rates dipped in the latter half of 2017, rates were only up half a percentage point year-over-year.

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.

The Richmond team also includes Liam Logan, Cole Hooper, Brad Balke, Zack Rutland, Renee Castillo, 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

Aug 20-22, 2018: Retail Delivery Connect, Ft. Lauderdale, FL
October 4-5, 2018: Colliers National Industrial Conference, Chicago, IL

BRAD BALKE
Associate

ZACK RUTLAND
Associate

RENÈE CASTILLO
Associate

RACHEL HENDRIX
Client Services Coordinator

MIKE OTILLIO
Research Director

KARI BEETS
Research Associate

The Richmond team is supported by Colliers International Research Team

SUBMARKET MAP

This is a new map that we created with our superb Colliers DFW marketing team in an e§ort to show DFW’s 8 key industrial submarkets. This map gives you a snapshot of the DFW metro highlighting landmarks, airports, intermodals, distribution hubs and manufacturing facilities for notable tenants and of course the Best BBQ joint each submarket has to o§er. We will keep evolving this map and if you would like to discuss the DFW marketplace, please contact our team to dig in further.

CONTACT WARD RICHMOND AT:

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




About the Author


Join Discussion