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.
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
Corporate real estate solutions
LOGISTICS TRANSPORTATION ECOMMERCE CONSULTANT SPEAKER THOUGHT LEADER
KW International, Inc. is a total logistic company with unique business mind and brilliant people ...
Success Story: Peak Season Fire Drill
By Ward Richmond
KW International, Inc. is a total logistic company with unique business mind and brilliant people who strive to design and offer only the best logistic solution to its customers. We take pride in being a rapidly growing community of talented and special individuals, orchestrating every aspect of logistics to ensure we can be one-stop logistic solutions provider.
DETAILS OF THE DEAL
KW faced a mission critical challenge when one of their largest customers was forced to recall a massive amount of product.
Of course, this recall occurred in early December. If you are in tune to the logistics business, then you know that December is in the heat of “Peak Season” and most flexible space solutions are already in use do to increased consumer demand during the holiday season!
Nevertheless, KW required extremely flexible overflow space solutions as fast as humanly possible.
The Richmond Team got to work. Cole Hooper, my right hand man, is known throughout America as having the ability to perform world class market studies, for extremely difficult requirements in record timeframe. That’s how we roll! Cole and I worked together to put together a killer market study of flexible space solutions while utilizing our relationships with landlords to dig up these tough to find options for KW.
Our team provided a comprehensive market study of all available short term leases and sublet options that would allow KW the ﬂexibility they required within 48 hours of receiving the initial request.
We worked with client to secure 50K SF within 8 business days of initial request.
Due to increasing capacity demands, we secured and relocated to another 80K SF facility about 30 days later.
Due to another unexpected surge in recall inventory, we worked together to secure and relocate into 205K SF facility while negotiating a 50% reduction in the first month’s rental rate to meet cost goals during this hectic overflow procedure.
We wound up working with one key institutional Landlord (can you guess which one???) to accommodate these flexible space solutions while negotiating a 4 month term. This term aligned with the end of Q1 and Q2 which provided an abnormally short term for our client while allowing the Landlord to attain stronger occupancy numbers for two consecutive quarters making this transaction a “Win-Win” for all parties involved.
“he 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
Please contact The Wolf directly to discuss further details related to this exciting project.
August is here and the grass in my front yard is brown from the scorcher that swung through Texas this past July.
It’s a Scorcher Out There
By Ward Richmond
August is here and the grass in my front yard is brown from the scorcher that swung through Texas this past July. In case you did not know, a scorcher is several consecutive days of walking through warehouses when it’s 107° outside.
You know what else is scorching? The DFW industrial real estate market once again, is certifiably, on fire! We dipped down to sub 6 vacancy at an aggressive 5.9%. I will continue to say this every quarter so you don’t forget – 10% used to be the norm! According to our expert research team at Colliers International, the DFW industrial market experienced 5 Mil SF of Net Absorption this summer totaling up to almost 8 Mil SF YTD. I like to see it hit the 20 Mil SF mark every year so we need to pick up the pace but nobody can really complain. Seriously. This is semi-ridiculous, y’all! According to my leasing broker friends, they have never had so many leases out for signature in DFW in their careers. The time is now. Developers are doing their best to keep up delivering 7.6 Mil SF YTD falling just short of the 8 Mil in Net Absorption. Furthermore, these industrial real estate wildcats have another 25 Mil SF +/- under construction.
As previously mentioned, the beauty of this DFW industrial landscape is that construction and absorption are extremely well aligned during the longest and strongest bull market in commercial real estate history. This occurrence allows landlords to keep cashin’ checks and snappin’ necks but also provides tenants with some pretty decent options and competitive economics. I’ve found that comparatively working deals in markets like Miami, Seattle, San Francisco, Toronto, New Jersey, and LA (I can keep going, but I’ll stop) prove to be an absolute nightmare due to lack of new supply and extremely low vacancy.
Why is this happening? In my opinion, it is fairly simple: The rise of e-commerce and the Amazon effect. Today, I get my Casper mattress delivered – and installed – and then I get my old mattress removed and disposed of – by XPO logistics (I am a shareholder). My IKEA furniture is delivered by TForce Final Mile (I am a shareholder). My groceries are delivered using my SHIPT app. I do my shopping on Instagram and get my coffee (and coffee maker) and Halloween costume and pretty much everything else I can ever think of via Amazon (I am a shareholder).
When do I want it? Basically, I want it as fast as my customers want their market surveys. Yesterday! The only way to make that happen is to build some serious distribution infrastructure and that’s what we are doing! There is no doubt in my mind that 2018 will go down in the history books as one of the most fruitful years in the history of the logistics and industrial real estate business – in DFW and across the globe.
Mars Petco leased 1.5 Mil SF from Bandera Ventures landing just South of DFW Airport.
Black & Deckerleased 1.2 Mil SF at Alliance Airport from the mighty, helicopter ying,
Hillwood. Once you step foot in their helicopter, it’s hard to say No!
Living Spaces subleased 858,000 SF in Grand Prairie from Restoration Hardware.
VM Innovations My buddy Matt Elliott slammed down a 416K SF repping Core 5 with VM Innovations
adjacent to the UP Intermodal in Hutchins, TX.
Amazon keeps crushing DFW by allegedly renewing 920K SF with GLP (in the old Van Trust building) in South Dallas while simultaneously securing 395K SF with Port Logistics Realty just across I-45 in Wilmer, TX. Rumor has it, they have another 1 Mil SF working in South Dallas and another 1 Mil SF working on the tarmac at DFW Airport. Jeff Bezos, this is ridiculous. Please hire me.
Q2 2018 TOP RICHMOND TEAM PROJECTS
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
TForce Final Mile – Fullerton, CA – 100,000 SF – Renewal and Expansion
Indel Food – 601 National Drive – Ennis TX – 315,000 SF – FOR LEASE
Big-Box deliveries picked up in Q2, after an unusually slow Q1. Seven properties totaling 3.5 million square feet were delivered, almost double last quarter’s total. Deliveries YTD are 5 million square feet behind the half-year mark in 2017. Pre-leasing activity is still healthy; delivered properties were 60% leased as of quarter end.
Vacancy declined 0.6% from the previous quarter and is down 1%from the prior year. Sublet space on the market continues to be high at 1.5 million square feet. Expect vacancy to continue its downward trend for the rest of the year, as e-commerce demand is strong and deliveries this year are expected to total 15 million square feet, almost 6 million square feet less than 2017.
After a very slow Q1, net absorption returned to levels normal for this real estate cycle in Q2. Absorption totaled 4.5 million square feet, bringing the YTD total to 6.3 million square feet, just 8% slower than half-year 2017. Expect Big-Box absorption to hover around the 3-5 million mark for the next few quarters.
Average asking rates for Big-Box product were flat quarter-to-quarter and year-over-year at $3.83.
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, Renèe 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
ON THE ROAD AGAIN
August 20-22, 2018: 3PL Value Creation North America Summit, Chicago, IL October 4-5, 2018: Colliers National Industrial Conference, Chicago, IL
Client Services Coordinator
Business Development & Content Strategist
The Richmond team is supported by Colliers International Research Team
This is a new map that we created with our superb Colliers DFW marketing team in an effort 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 offer. We will keep evolving this map and if you would like to discuss the DFW marketplace, please contact our team to dig in further.
We encourage our clients and prospective clients to take time to complete this thorough Needs Analysis in an effort to help our team to better understand your business as it relates to your current Supply Chain Real Estate strategy.
This Project Specifications template helps our team to gain a comprehensive understanding related to specific project goals. This detailed form also helps our clients to thoroughly analyze all project components ranging from geography, operation functionality, and labor requirements related to specific projects.
Industrial Tenant Questionnaire
Please find attached PDF.
This e-mail was sent from a contact form on (https://supplychainrealestate.com)
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