• 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

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DFW Market Update — Q2 2017

DFW-Market-Report-Q2-2017-8-8-17

DFW Market Update — Q2 2017

March 22, 2017 Market Reports 0 Comments

DFW Market Report — Q2 2017

by Ward Richmond

As consumer demand for delivery speed continues to grow, shippers around the globe are all focused on new ways to improve efficiencies throughout their supply chain. From where I’m standing, DFW looks like a pretty efficient place to be!

TALK EFFICIENCY TO ME

As we trek into Q3 2017, we see that the DFW industrial market is still going strong despite a 35% decrease in industrial leasing activity. Compared to the “large and in charge” midyear 2016 numbers– leasing is down from 30M SF to 20M SF.

Despite this slowdown in leasing, Q2 2017 numbers are still robust with rental rates continuing to push up, cap rates holding steady in the high 4’s/ low 5’s, and overall industrial vacancy decreasing slightly to 6.2% from 6.4% in Q2 2017.

DFW_Market_Report_Highlights_Chart 8-8-17

Notable Recent Activity Includes:

  • Kohler pulling the trigger on a 1.4M DC in Lancaster, TX
  • Discount Tire closed on land to accommodate a 700K SF Design Build
  • Wayfair sealed the deal on an 874K SF Build To Suit with Duke Realty

This aforementioned activity all occurred in the South Dallas submarket, which is known as the home of the Big Bombers and here are a few reasons why…

South Dallas Submarket Snapshot

  • Reasonably priced land in the $2-3 psf range
  • Prime logistics with access to all major interstates I-35E/ I-45/ I-20/ I-30 and the UP Intermodal
  • Aggressive rates in the mid $3’s psf NNN
  • The highest Big Box vacancy rate in town at 20%
  • Hyperactive construction volume with just under 4 M SF in YTD Deliveries and approximately 6 MMM U/C

Notable Q2 DFW Deals

Transpacific Development Co.

A real estate investment and development firm based in Torrance, California, Transpacific Development Co. purchased 713K SF soon-to-be delivered distribution hub which is 80% leased to Campbell Soup Supply Co. in Fort Worth.

Discount Tire

Will break ground on its new 700,000 SF facility at 9901 Bonnie View Road by the end of the month. They bought the land from Dan McAuliffe at The Allen Group and will be developing themselves.

S&S Activewear

Based in Bolingbrook, Ill., S&S Activewear has leased 493,000 SF from Dallas-based Hunt Southwest Real Estate Development. Hunt Southwest began construction on the 657,000 SF facility about a year ago in the southeast quadrant of I-35W and Loop 820 in Fort Worth.

DFW_Market_Report_Indicators_Chart-8-8-17

Notable Q2 Team Richmond Projects

Keller Logistics

Currently representing Keller Logistics on the sale / lease of their ±472,234 SF Final Mile Logistics Center located minutes away from the Dallas CBD.

Built-to-Suit Project

Currently marketing a 468,000 SF Build to Suit opportunity on behalf of CenterPoint Properties with Interstate 45 visibility in the heart of the South Dallas logistics hub directly across the freeway from the Union Pacific Intermodal.

Performance POP — Sale Leaseback

Represented Performance POP on a long-term sale leaseback of a two building portfolio comprised of 91,294 SF in Dallas.

DFW_Submarket_Map

Key Takeaways

  • Dallas’ big box market continues to be strong with 3.5 million SF of absorption in Q2 2017, up slightly from Q1. The Great Southwest (GSW) submarket had the highest level of absorption year-to-date, with 1.2 million coming in Q2.
  • Big box vacancy decreased 0.4% from the prior quarter and 0.1% year over year. South Dallas had the highest vacancy rate in the quarter at 20%, an increase of 2.1% from the previous quarter
  • Five properties were delivered in Q2 2017 totaling 2.5 million square feet. Year-to-date deliveries have exceeded net absorption by 3 million square feet. All Big Box properties that
  • delivered in Q2 2017 were speculative and were 6.9% leased at the end of the quarter. Big Box properties under construction totaled 17.5 million square feet and spec buildings were 23% pre-leased.
  • Asking rental rates continued to increase in Q2 2017, rising to an average of $3.83, up only slightly from $3.81 in the prior quarter. Rates should continue to increase, but expect the quarterly rate of increase to slow.
DFW_Market_Report_Big_Box 8-8-17
DFW_Market_Report_Indicators_Chart_2 8-8-17



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