DFW Market Update — Q3 2017
DFW Market Report — Q3 2017
by Ward Richmond
DFW roars into Q4 after an explosive summer of rock-solid leasing activity. Just when we thought Amazon might chill out for a little bit and settle into the 8 million square feet they occupy, they go and sign 600K and 920K square foot leases. Rumor has it that they have another 400-500K square foot deal in the pipeline that will land this year. Thanks Jeff Bezos! If only they were my client, I could retire and move to Hawaii.
DFW Leasing Activity Explodes in 3Q 2017
Much like I focus on retiring in Hawaii with millions of dollars stashed away, supply chain wizards continue to focus on improving supply chain efficiencies and customer experience (CX) to help their companies gain market share – and in some cases – just keep the doors open! This continued effort towards gaining a competitive edge through innovative supply chain strategy is the primary driver behind all the explosive leasing activity.
In addition to Amazon, Haier signed 700K square feet. Rumor has it that Ghirardelli Chocolate is about to land this quarter. The mega 3PL, XPO, has landed multiple deals over the summer totaling out and over 500K SF. They are still going strong winning contracts left and right. Bradley Jacobs is the man! Another notable deal in the infill Brookhollow submarket occurred with Humanetic purchasing the former Mary Kay cosmetics manufacturing facility. Pink Cadillacs not included.
Notable recent activity includes:
DFW 3Q Big Box Numbers are “Steady Eddie” with 3 million in absorption pushing YTD absorption to 9.5 million. Big Box construction and vacancy numbers are holding steady with 17.5 million square feet under construction and vacancy at 10.5%.
I’m Going Through The Big D And Don’t Mean Dallas!
When I say Big D, I mean BIG DISTRIBUTION Markets! If you know me, you know that I can talk to you all day long about how DFW is the best, our market is booming, etc. etc.. While this is true to a certain extent, the fact of the matter is the industrial real estate market booming everywhere! Our team is currently working on tenant representation projects in Seattle, NorCal, LA, Atlanta, Lehigh Valley, New Jersey, Miami among others, and we continue to see similar trends of robust industrial activity across the board.
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