By Ward Richmond
Peace Out, 2020!
The Global Industrial Market boomed in 2020 as the COVID-19 pandemic changed the way we live, work, play and shop and eCommerce growth rate surged and the demand for modern bulk eCommerce distribution facilities went through the roof.
DFW was one of the most active markets in the world with Developers delivering over 30 Mil SF of new space in 2020 with another 32 Mil SF under construction. This is likely due to the ongoing demand by occupiers of Supply Chain Real Estate to relocate or expand their presence in our metroplex due to the amazing logistics infrastructure, low cost of living, central location, fast growing population, business friendly government and an industrial real estate market which is going to bust through the 1 Billion SF mark before we know it.
From what I can tell, the pedal is still firmly planted to the metal.
The Big Box Market (200K SF + facilities) hit solid absorption numbers with almost 19 Mil SF absorbed in 2020 which is almost exactly the same result as 2019. Q4 2020 was fairly slow with only 2.5 Mil SF of deals getting done versus 6.2 Mil SF in Q4 2019.
The NON Big-Box warehouse market had a big Q4 and reversed the negative absorption trends that we had seen since the onset of the pandemic with a strong Q4 and a total of 1 Mil SF of positive absorption in 2020.
We are hopeful that the COVID vaccine will return a sense of normalcy to the world so that we can get back to attending Supply Chain conferences with our clients and friends! I have to admit that I’m a little surprised at how much I miss spending time in those Marriott banquet rooms and needless to say, I can’t wait to get back and reunite with you all in person very soon!
We hope you all stay safe out there and please reach out direct if we can help you with your Supply Chain Real Estate needs.
To get further inside my supply chain brain,
please check out my website and blog:
AVG Qoated Rent:$4.58 SF
200,000-499,999 SF: 426/20
500,000-749,999 Sf: 111/9
750,000+ SF: 81/4
Even with million of square feet delivering and under Construction, the vacancy rate at 10.9% continues to remain strong. This rate equals roughly 30.7 million square feet of available space, offering new tenants moving to the market abundant options in all size categories.
While not completing absorbing all the new space delivered, the metroplex was able to come close absorbing almost 19 million square feet.
Rental rates shot up to $4.58 per square foot NNN, which means the overall asking rates continue to be over $4.00 per square feet.
Construction is showing no signs of slowing down with almost a record 23 million square feet still set to deliver over the next 18 months.
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.
Client Services Specialist
The Gladiator Group is supported by Colliers International Research Team