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Dallas/Ft. Worth Industrial MarketY e a r - E n d 2 0 1 7

CoStar Industrial Statistics

Dallas/Ft. Worth Industrial Market

©2018 CoStar Group, Inc. CoStar Industrial Statistics A

Year-End 2017 – Dallas/Ft. Worth

Table of ContentsTable of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . AMethodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BTerms & Definitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CMarket Highlights & Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1CoStar Markets & Submarkets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Inventory & Development Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Inventory & Development AnalysisSelect Top DeliveriesSelect Top Under Construction Properties

Figures at a Glance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Figures at a Glance by Building Type & MarketFigures at a Glance by Building Type & SubmarketHistorical Figures at a Glance

Leasing Activity Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13Select Top Lease Transactions

Sales Activity Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15Sales Activity AnalysisSelect Top Sales Transactions

Analysis of Individual CoStar Submarket Clusters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17DFW Airport MarketEast Dallas MarketGreat SW/Arlington MarketNorth Ft Worth MarketNortheast Dallas MarketNorthwest Dallas MarketSouth Dallas MarketSouth Ft Worth MarketSouth Stemmons Market


B CoStar Industrial Statistics ©2018 CoStar Group, Inc.

Dallas/Ft. Worth – Year-End 2017


©2018 CoStar Group, Inc. CoStar Industrial Statistics C


MethodologyThe CoStar Industrial Statistics calculates Industrial statistics using CoStar Group's base of existing, under construction and under renovation Industrial buildings in each given metropolitan area. All Industrial building types are included, including warehouse, flex / research & development, distribution, manufacturing, industrial showroom, and service buildings, in both single-tenant and multi-tenant buildings, including owner-occupied buildings. CoStar Group's global database includes approximately 119 billion square feet of coverage in 5.4 million properties. All rental rates reported in the CoStar Industrial Report are calculated using the quoted rental rate for each property.

© Copyright 2018 CoStar Group, Inc. All Rights Reserved. Although CoStar makes efforts to ensure the accuracy and reliability of the information contained herein, CoStar makes no guarantee, representation or warranty regarding the quality, accuracy, timeliness or completeness of the information. The publication is provided ‘as is’ and CoStar expressly disclaims any guarantees, representations or warranties of any kind, including those of MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

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For information on subscribing to CoStar’s other products and services, please contact us at 1-877-7COSTAR, or visit our web site at www.costar.com


B CoStar Industrial Statistics ©2018 CoStar Group, Inc.



©2018 CoStar Group, Inc. CoStar Industrial Statistics C


Terms & DefinitionsAvailability Rate: The ratio of available space to total rentable space, calculated by dividing the total available square feet by the total rentable square feet.

Available Space: The total amount of space that is currently being marketed as available for lease in a given time period. It includes any space that is available, regardless of whether the space is vacant, occupied, available for sublease, or available at a future date.

Build-to-Suit: A term describing a particular property, developed specifically for a certain tenant to occupy, with structural features, systems, or improvement work designed specifically for the needs of that tenant. A build-to-suit can be leased or owned by the tenant. In a leased build-to-suit, a tenant will usually have a long term lease on the space.

Buyer: The individual, group, company, or entity that has purchased a commercial real estate asset.

Cap Rate: Short for capitalization rate. The Cap Rate is a calculation that reflects the relationship between one year’s net operating income and the current market value of a particular property. The Cap Rate is calculated by dividing the annual net operating income by the sales price (or asking sales price).

CBD: Abbreviation for Central Business District. (See also: Central Business District)

Central Business District: The designations of Central Business District (CBD) and Suburban refer to a particular geographic area within a metropolitan statistical area (MSA) describing the level of real estate development found there. The CBD is characterized by a high density, well organized core within the largest city of a given MSA.

Class A: A classification used to describe buildings that generally qualify as extremely desirable investment-grade properties and com-mand the highest rents or sale prices compared to other buildings in the same market. Such buildings are well located and provide efficient tenant layouts as well as high quality, and in some buildings, one-of-a-kind floor plans. They can be an architectural or historical landmark designed by prominent architects. These buildings contain a modern mechanical system, and have above-average maintenance and management as well as the best quality materials and workmanship in their trim and interior fittings. They are generally the most attractive and eagerly sought by investors willing to pay a premium for quality.

Class B: A classification used to describe buildings that generally qualify as a more speculative investment, and as such, command lower rents or sale prices compared to Class A properties. Such buildings offer utilitarian space without special attractions, and have ordinary design, if new or fairly new; good to excellent design if an older non-landmark building. These buildings typically have average to good maintenance, management and tenants. They are less appealing to tenants than Class A properties, and may be deficient in a number of respects including floor plans, condition and facilities. They lack prestige and must depend chiefly on a lower price to attract tenants and investors.

Class C: A classification used to describe buildings that generally qualify as no-frills, older buildings that offer basic space and command lower rents or sale prices compared to other buildings in the same market. Such buildings typically have below-average maintenance and management, and could have mixed or low tenant prestige, inferior elevators, and/or mechanical/electrical systems. These build-ings lack prestige and must depend chiefly on a lower price to attract tenants and investors.

Construction Starts: Buildings that began construction during a specific period of time. (See also: Deliveries)

Contiguous Blocks of Space: Space within a building that is, or is able to be joined together into a single contiguous space.

Deliveries: Buildings that complete construction during a specified period of time. In order for space to be considered delivered, a certifi-

cate of occupancy must have been issued for the property.

Delivery Date: The date a building completes construction and receives a certificate of occupancy.

Developer: The company, entity or individual that transforms raw land to improved property by use of labor, capital and entrepreneurial efforts.

Direct Space: Space that is being offered for lease directly from the landlord or owner of a building, as opposed to space being offered in a building by another tenant (or broker of a tenant) trying to sublet a space that has already been leased.

Existing Inventory: The square footage of buildings that have received a certificate of occupancy and are able to be occupied by tenants. It does not include space in buildings that are either planned, under construction or under renovation.

Flex Building: A type of building designed to be versatile, which may be used in combination with office (corporate headquarters), research and development, quasi-retail sales, and including but not limited to industrial, warehouse, and distribution uses. A typical flex building will be one or two stories with at least half of the rentable area being used as office space, have ceiling heights of 16 feet or less, and have some type of drive-in door, even though the door may be glassed in or sealed off.

Full Service Rental Rate: Rental rates that include all operating expenses such as utilities, electricity, janitorial services, taxes and insur-ance.

Gross Absorption: The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing Activity, which is the sum of all space leased over a certain period of time. Unless otherwise noted Gross Absorption includes direct and sublease space.

Growth in Inventory: The change in size of the existing square footage in a given area over a given period of time, generally due to the construction of new buildings.

Industrial Building: A type of building adapted for such uses as the assemblage, processing, and/or manufacturing of products from raw materials or fabricated parts. Additional uses include warehous-ing, distribution, and maintenance facilities. The primary purpose of the space is for storing, producing, assembling, or distributing product.

Landlord Rep: (Landlord Representative) In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the owner/landlord is referred to as the Landlord Rep.

Leased Space: All the space that has a financial lease obligation. It includes all leased space, regardless of whether the space is currently occupied by a tenant. Leased space also includes space being offered for sublease.

Leasing Activity: The volume of square footage that is commit-ted to and signed under a lease obligation for a specific building or market in a given period of time. It includes direct leases, subleases and renewals of existing leases. It also includes any pre-leasing activity in planned, under construction, or under renovation buildings.

Market: Geographic boundaries that serve to delineate core areas that are competitive with each other and constitute a generally accepted primary competitive set of areas. Markets are building-type specific, and are non-overlapping contiguous geographic designations having a cumulative sum that matches the boundaries of the entire Region (See also: Region). Markets can be further subdivided into Submarkets. (See also: Submarkets)

Multi-Tenant: Buildings that house more than one tenant at a given time. Usually, multi-tenant buildings were designed and built to accommodate many different floor plans and designs for different


D CoStar Industrial Statistics ©2018 CoStar Group, Inc.

Dallas/Ft. Worth – Year-End 2017 Year-End 2017 – Dallas/Ft. Worth


©2018 CoStar Group, Inc. CoStar Industrial Statistics 1

tenant needs. (See also: Tenancy).

Net Absorption: The net change in occupied space over a given period of time. Unless otherwise noted Net Absorption includes direct and sublease space.

Net Rental Rate: A rental rate that excludes certain expenses that a tenant could incur in occupying office space. Such expenses are expected to be paid directly by the tenant and may include janitorial costs, electricity, utilities, taxes, insurance and other related costs.

New Space: Sometimes called first generation space, refers to space that has never been occupied and/or leased by a tenant.

Occupied Space: Space that is physically occupied by a tenant. It does not include leased space that is not currently occupied by a tenant.

Office Building: A type of commercial building used exclusively or primarily for office use (business), as opposed to manufacturing, warehousing, or other uses. Office buildings may sometimes have other associated uses within part of the building, i.e., retail sales, finan-cial, or restaurant, usually on the ground floor.

Owner: The company, entity, or individual that holds title on a given building or property.

Planned/Proposed: The status of a building that has been announced for future development but not yet started construction.

Preleased Space: The amount of space in a building that has been leased prior to its construction completion date, or certificate of occupancy date.

Price/SF: Calculated by dividing the price of a building (either sales price or asking sales price) by the Rentable Building Area (RBA).

Property Manager: The company and/or person responsible for the day-to-day operations of a building, such as cleaning, trash removal, etc. The property manager also makes sure that the various systems within the building, such as the elevators, HVAC, and electrical systems, are functioning properly.

Quoted Rental Rate: The asking rate per square foot for a par-ticular building or unit of space by a broker or property owner. Quoted rental rates may differ from the actual rates paid by tenants following the negotiation of all terms and conditions in a specific lease.

RBA: Abbreviation for Rentable Building Area. (See also: Rentable Building Area)

Region: Core areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Regions are further divided into market areas, called Markets. (See also: Markets)

Relet Space: Sometimes called second generation or direct space, refers to existing space that has previously been occupied by another tenant.

Rentable Building Area: (RBA) The total square footage of a building that can be occupied by, or assigned to a tenant for the purpose of determining a tenant’s rental obligation. Generally RBA includes a percentage of common areas including all hallways, main lobbies, bathrooms, and telephone closets.

Rental Rates: The annual costs of occupancy for a particular space quoted on a per square foot basis.

Sales Price: The total dollar amount paid for a particular property at a particular point in time.

Sales Volume: The sum of sales prices for a given group of buildings in a given time period.

Seller: The individual, group, company, or entity that sells a particular commercial real estate asset.

SF: Abbreviation for Square Feet.

Single-Tenant: Buildings that are occupied, or intended to be occupied by a single tenant. (See also: Build-to-suit and Tenancy)

Sublease Space: Space that has been leased by a tenant and is being offered for lease back to the market by the tenant with the lease obligation. Sublease space is sometimes referred to as sublet space.

Submarkets: Specific geographic boundaries that serve to delin-eate a core group of buildings that are competitive with each other and constitute a generally accepted primary competitive set, or peer group. Submarkets are building type specific (office, industrial, retail, etc.), with distinct boundaries dependent on different factors relevant to each building type. Submarkets are non-overlapping, contiguous geographic designations having a cumulative sum that matches the boundaries of the Market they are located within (See also: Market).

Suburban: The Suburban and Central Business District (CBD) des-ignations refer to a particular geographic area within a metropolitan statistical area (MSA). Suburban is defined as including all office inven-tory not located in the CBD. (See also: CBD)

Tenancy: A term used to indicate whether or not a building is occu-pied by multiple tenants (See also: Multi-tenant) or a single tenant. (See also: Single-tenant)

Tenant Rep: Tenant Rep stands for Tenant Representative. In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the tenant is referred to as a Tenant Rep.

Time On Market: A measure of how long a currently available space has been marketed for lease, regardless of whether it is vacant or occupied.

Under Construction: Buildings in a state of construction, up until they receive their certificate of occupancy. In order for CoStar to consider a building under construction, the site must have a concrete foundation in place. Abbreviated UC.

Vacancy Rate: A measurement expressed as a percentage of the total amount of physically vacant space divided by the total amount of existing inventory. Under construction space generally is not included in vacancy calculations.

Vacant Space: Space that is not currently occupied by a tenant, regardless of any lease obligation that may be on the space. Vacant space could be space that is either available or not available. For example, sublease space that is currently being paid for by a tenant but not occupied by that tenant, would be considered vacant space. Likewise, space that has been leased but not yet occupied because of finish work being done, would also be considered vacant space.

Weighted Average Rental Rate: Rental rates that are cal-culated by factoring in, or weighting, the square footage associated with each particular rental rate. This has the effect of causing rental rates on larger spaces to affect the average more than that of smaller spaces. The weighted average rental rate is calculated by taking the ratio of the square footage associated with the rental rate on each individual available space to the square footage associated with rental rates on all available spaces, multiplying the rental rate by that ratio, and then adding together all the resulting numbers. Unless specifically specified otherwise, rental rate averages include both Direct and Sublet available spaces.

Year Built: The year in which a building completed construction and was issued a certificate of occupancy.

YTD: Abbreviation for Year-to-Date. Describes statistics that are cumulative from the beginning of a calendar year through whatever time period is being studied.


D CoStar Industrial Statistics ©2018 CoStar Group, Inc.

Dallas/Ft. Worth – Year-End 2017 Year-End 2017 – Dallas/Ft. Worth



Overview

Dallas/Ft. Worth’s Vacancy Decreases to 6.4% Net Absorption Positive 7,656,000 SF in the Quarter

The Dallas/Ft. Worth Industrial market ended the fourth quarter 2017 with a vacancy rate of 6.4%. The vacancy rate was down over the previous quarter, with net

absorption totaling positive 7,656,000 square feet in the fourth quarter. Vacant sublease space decreased in the quarter, end-ing the quarter at 1,740,367 square feet. Rental rates ended the fourth quarter at $5.60, an increase over the previous quarter. A total of 34 buildings delivered to the market in the quarter totaling 6,840,572 square feet, with 20,911,406 square feet still under construction at the end of the quarter.

AbsorptionNet absorption for the overall Dallas/Ft. Worth Industrial

market was positive 7,656,000 square feet in the fourth quar-ter 2017. That compares to positive 4,998,256 square feet in the third quarter 2017, positive 6,124,784 square feet in the second quarter 2017, and positive 4,114,549 square feet in the first quarter 2017.

The Flex building market recorded net absorption of nega-tive (64,674) square feet in the fourth quarter 2017, compared to positive 313,453 square feet in the third quarter 2017, positive 1,152,199 in the second quarter 2017, and positive 1,193,898 in the first quarter 2017.

The Warehouse building market recorded net absorp-tion of positive 7,720,674 square feet in the fourth quarter 2017 compared to positive 4,684,803 square feet in the third quarter 2017, positive 4,972,585 in the second quarter 2017, and positive 2,920,651 in the first quarter 2017.

Vacancy

The Industrial vacancy rate in the Dallas/Ft. Worth market area decreased to 6.4% at the end of the fourth quarter 2017. The vacancy rate was 6.5% at the end of the third quarter 2017, 6.5% at the end of the second quarter 2017, and 6.7% at the end of the first quarter 2017.

Flex projects reported a vacancy rate of 6.3% at the end of the fourth quarter 2017, 6.0% at the end of the third quarter 2017, 6.1% at the end of the second quarter 2017, and 6.2% at the end of the first quarter 2017.

Warehouse projects reported a vacancy rate of 6.4% at the end of the fourth quarter 2017, 6.6% at the end of third quarter 2017, 6.5% at the end of the second quarter 2017, and 6.8% at the end of the first quarter 2017.

Largest Lease SigningsThe largest lease signings occurring in 2017 included: the

1,300,000-square-foot lease signed by Kohler Co. at 9500 S Polk St in the South Dallas market; the 1,004,400-square-foot deal signed by UPS at Arlington Commerce Center - Building E in the Great SW/Arlington market; and the 920,275-square-foot lease signed by Amazon at DalParc I-20 - Building 1 in the South Dallas market.

Sublease VacancyThe amount of vacant sublease space in the Dallas/Ft.

Worth market decreased to 1,740,367 square feet by the end of the fourth quarter 2017, from 2,159,281 square feet at the end of the third quarter 2017. There was 1,977,509 square feet vacant at the end of the second quarter 2017 and 2,167,503 square feet at the end of the first quarter 2017.

Vacancy Rates by Building Type 100-2017

Source: CoStar Property®

Absorption & Deliveries U.S. Vacancy ComparisonPast 10 Quarters Past 10 Quarters

Source: CoStar Property® Source: CoStar Property®

0%

2%

4%

6%

8%

10%

12%

14%

2001 4q 2002 4q 2003 4q 2004 4q 2005 4q 2006 4q 2007 4q 2008 4q 2009 4q 2010 4q 2011 4q 2012 4q 2013 4q 2014 4q 2015 4q 2016 4q 2017 4

Vaca

ncy

Rate

Flex Warehouse Total Market

1.5

7.8

6.2

2.7

9.9

6.9

4.1

6.1

5.0

7.7

3.3

5.7

4.54.9 4.9

5.8

11.3

4.7

5.9

6.8

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2015 3q 2016 1q 2016 3q 2017 1q 2017 3q

Millions

SF

Net Absorption Deliveries

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

2015 3q 2016 1q 2016 3q 2017 1q 2017 3q

Vaca

ncy

Rate

Dallas/Ft Worth United States

2 CoStar Industrial Statistics ©2018 CoStar Group, Inc.

Dallas/Ft. Worth � Year-End 2017

Dallas/Ft. Worth Industrial MarketYear-End 2017 – Dallas/Ft. Worth



Overview

Dallas/Ft. Worth’s Flex projects reported vacant sublease space of 170,741 square feet at the end of fourth quarter 2017, down from the 395,168 square feet reported at the end of the third quarter 2017. There were 458,866 square feet of sublease space vacant at the end of the second quarter 2017, and 363,094 square feet at the end of the first quarter 2017.

Warehouse projects reported decreased vacant sublease space from the third quarter 2017 to the fourth quarter 2017. Sublease vacancy went from 1,764,113 square feet to 1,569,626 square feet during that time. There was 1,518,643 square feet at the end of the second quarter 2017, and 1,804,409 square feet at the end of the first quarter 2017.

Rental RatesThe average quoted asking rental rate for available

Industrial space was $5.60 per square foot per year at the end of the fourth quarter 2017 in the Dallas/Ft. Worth market area. This represented a 6.3% increase in quoted rental rates from the end of the third quarter 2017, when rents were reported at $5.27 per square foot.

The average quoted rate within the Flex sector was $9.80 per square foot at the end of the fourth quarter 2017, while Warehouse rates stood at $4.75. At the end of the third quar-ter 2017, Flex rates were $9.52 per square foot, and Warehouse rates were $4.50.

Deliveries and ConstructionDuring the fourth quarter 2017, 34 buildings totaling

6,840,572 square feet were completed in the Dallas/Ft. Worth market area. This compares to 31 buildings totaling 5,916,675 square feet that were completed in the third quarter 2017, 38 buildings totaling 4,705,121 square feet completed in the sec-ond quarter 2017, and 11,263,737 square feet in 57 buildings completed in the first quarter 2017.

There were 20,911,406 square feet of Industrial space under construction at the end of the fourth quarter 2017.

Some of the notable 2017 deliveries include: SouthPort Logistics Park - Building 1, a 1,075,260-square-foot facility that delivered in first quarter 2017 and is now 0% occupied, and Arlington Commerce Center - Building E, a 1,004,400-square-foot building that delivered in fourth quarter 2017 and is now 100% occupied.

The largest projects underway at the end of fourth quar-ter 2017 were 9500 S Polk St, a 1,300,000-square-foot building with 100% of its space pre-leased, and Trammell Crow at 35 Eagle - Building A, a 1,089,642-square-foot facility that is 0% pre-leased.

InventoryTotal Industrial inventory in the Dallas/Ft. Worth market

area amounted to 878,665,205 square feet in 21,243 buildings as of the end of the fourth quarter 2017. The Flex sector consist-ed of 132,473,569 square feet in 6,946 projects. The Warehouse sector consisted of 746,191,636 square feet in 14,297 buildings. Within the Industrial market there were 3,340 owner-occupied buildings accounting for 220,550,330 square feet of Industrial space.

Sales ActivityTallying industrial building sales of 15,000 square feet or

larger, Dallas/Ft Worth industrial sales figures fell during the third quarter 2017 in terms of dollar volume compared to the second quarter of 2017.

In the third quarter, 16 industrial transactions closed with a total volume of $59,434,740. The 16 buildings totaled 810,207 square feet and the average price per square foot equated to $73.36 per square foot. That compares to 24 transactions totaling $264,130,187 in the second quarter. The total square footage was 4,060,725 for an average price per square foot of $65.05.

Total year-to-date industrial building sales activity in 2017 is up compared to the previous year. In the first nine months of 2017, the market saw 72 industrial sales transactions with a total volume of $560,016,409. The price per square foot has averaged $61.40 this year. In the first nine months of 2016, the market posted 38 transactions with a total volume of $325,533,189. The price per square foot averaged $58.77.

Cap rates have been lower in 2017, averaging 7.97%, com-pared to the first nine months of last year when they averaged 8.60%.

One of the largest transactions that has occurred within the last four quarters in the Dallas/Ft Worth market is the sale of 2305 W Marshall Drive in Grand Prairie. This 667,635-square-foot industrial building sold for $52,000,000, or $77.89 per square foot. The property sold on 1/25/2017.

Report compiled by William Trentzsch, CoStar Senior Research Manager, and Tyler Grote, CoStar Research Manager.

Vacancy Rates by Building Type 100-2017


Absorption & Deliveries U.S. Vacancy ComparisonPast 10 Quarters Past 10 Quarters


0%

2%

4%

6%

8%

10%

12%

14%

2001 4q 2002 4q 2003 4q 2004 4q 2005 4q 2006 4q 2007 4q 2008 4q 2009 4q 2010 4q 2011 4q 2012 4q 2013 4q 2014 4q 2015 4q 2016 4q 2017 4

Vaca

ncy

Rate


1.5

7.8

6.2

2.7

9.9

6.9

4.1

6.1

5.0

7.7

3.3

5.7

4.54.9 4.9

5.8

11.3

4.7

5.9

6.8

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2015 3q 2016 1q 2016 3q 2017 1q 2017 3q

Millions

SF

Net Absorption Deliveries

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

2015 3q 2016 1q 2016 3q 2017 1q 2017 3q

Vaca

ncy

Rate







CoStar Submarket Clusters & SubmarketsIn analyzing metropolitan areas, CoStar has developed geographic designations to help group properties together, called Markets, Submarket Clusters and Submarkets. Markets are the equivalent of metropolitan areas, or areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Markets are then divided into Submarket Clusters, which are core areas within a metropolitan area that are known to be competitive with each other in terms of attracting and keeping tenants. Markets are then further subdivided into smaller units called Submarkets, which serve to delineate a core group of buildings that are competitive with each other and constitute a generally accepted competitive set, or peer group.

Markets

Submarket Clusters Submarkets

DFW Airport Ind E DFW Air/Las Colinas Ind W DFW Air/Grapevine Ind

East Dallas Ind Central East Dallas Ind East Dallas/Mesquite Ind Forney/Terrll/Kauf Cy Ind Outlying Kaufman Cnty Ind

Great SW/Arlington Ind Arlington Ind Lower Great Southwest Ind Upper Great Southwest Ind

North Ft Worth Ind Meacham Fld/Fossil Cr Ind NE Tarrant/Alliance Ind Parker County Ind West Tarrant IndWise County Ind

Northeast Dallas Ind Allen/McKinney Ind Delta County Ind Hunt County Ind NE Dallas/Garland IndOutlying Collin Cnty Ind Plano Ind Richardson Ind Rockwall Ind

Northwest Dallas Ind Denton Ind Lewisville Ind Metropolitan/Addison Ind N Stemmons/Valwood Ind

South Dallas Ind Outlying Ellis Cnty Ind Redbird Airport Ind SE Dallas/I-45 Ind SW Dallas/US 67 Ind

South Ft Worth Ind East Ft Worth Ind Hood County Ind Johnson County Ind Mansfield IndN Central Ft Worth Ind S Cen.Tarrant Cnty Ind S Central Ft Worth Ind Southwest Tarrant Ind

South Stemmons Ind East Brookhollow Ind East Hines North Ind Eastern Lonestar/Tpke Ind North Trinity IndWest Brookhollow Ind West Hines North Ind Western Lonestar/Tpke Ind






Historical Deliveries 1982 - 2017

Source: CoStar Property® * Future deliveries based on current under construction buildings.

Construction Activity Markets Ranked by Under Construction RBA

# Bldgs Preleased SF Preleased % All Existing U/C

South Dallas Ind 10 3,360,566 45.7% 57,378 735,183

North Ft Worth Ind 15 841,349 23.0% 60,232 244,355

Great SW/Arlington Ind 7 2,197,000 68.1% 61,721 461,093

DFW Airport Ind 8 1,039,176 47.8% 81,181 271,838

Northwest Dallas Ind 13 496,098 37.6% 53,293 101,498

Northeast Dallas Ind 12 144,000 11.6% 38,093 103,887

East Dallas Ind 1 877,230 100.0% 25,684 877,230

South Stemmons Ind 6 189,200 26.5% 28,257 119,155

South Ft Worth Ind 4 8,775 2.6% 26,618 83,403

Totals 76 9,153,394 43.8% 41,363 275,150


Recent Deliveries Future Deliveries Leased & Un-Leased SF in Deliveries Since 2013 Preleased & Un-Leased SF in Properties Scheduled to Deliver


7,351,835

20,911,406

3,665,330

3,227,650

2,174,702

1,319,475

1,246,640

877,230

714,933

333,611

Market

Under Construction Inventory Average Bldg Size

Total RBA

16.317.3

23.724.9

18.4

11.7

5.74.1

5.63.5 3.7 3.4

6.6

9.4

16.6

22.0

17.4

24.223.323.8

15.6

7.9

13.5

8.6

14.316.2

24.3

12.1

1.9 2.1 2.8

8.2

17.919.9

21.6

30.3

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

1982 1986 1990 1994 1998 2002 2006 2010 2014

Millions

of

SF

Deliveries Average Delivered SF

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

2013 2015 2017

Millions

of

SF

Leased Un-Leased

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2018 1q 2018 3q

Tho

usa

nds

of

SF

Preleased Un-Leased

Inventory & development






Historical Construction Starts & DeliveriesSquare Footage Per Quarter Starting and Completing Construction


Recent Deliveries by Project Size Breakdown of Year-to-Date Development Based on RBA of Project

Building Size # Bldgs RBA SF Leased % Leased Avg Rate Single-Tenant Multi-Tenant

< 50,000 SF 80 999,760 635,964 63.6% $9.22 88,180 911,580

50,000 SF - 99,999 SF 16 1,164,554 722,374 62.0% $6.68 255,000 909,554

100,000 SF - 249,999 SF 30 4,299,853 2,387,909 55.5% $4.72 769,000 3,530,853

250,000 SF - 499,999 SF 25 9,097,116 4,137,334 45.5% $4.02 1,856,626 7,240,490

>= 500,000 SF 18 13,563,841 7,729,811 57.0% $3.89 1,139,448 12,424,393


Recent Development by Tenancy Existing Inventory ComparisonBased on RBA Developed for Single & Multi-Tenant Use Based on Total RBA

2017 Deliveries


Currently Under Construction By Building Type By Tenancy Type

6.3

2.5

6.6

4.5

3.54.0

7.78.0 7.7

8.4

3.8

7.5

5.8 6.0

4.3

5.45.1

1.52.2

8.7

6.8

3.3 3.3

5.7

4.54.9 4.9

5.8

11.3

4.7

5.9

6.8

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2014 1q 2015 1q 2016 1q 2017 1q

Millions

of

SF

Construction Starts Deliveries

81%

19%

Multi Single

86%

14%

Multi Single

15%

85%

Flex Warehouse

50%50%

Multi Single







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Flex Market Statistics Year-End 2017

YTD Net YTD Under Quoted

Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates

DFW Airport Ind 340 9,102,729 822,090 838,075 9.2% 9,709 6,600 0 $9.66

East Dallas Ind 653 8,519,849 921,671 921,671 10.8% (31,744) 0 0 $9.16

Great SW/Arlington Ind 496 10,273,588 609,141 617,258 6.0% 354,085 11,000 0 $9.36

North Ft Worth Ind 297 5,771,411 67,487 70,287 1.2% 727,647 262,000 62,000 $8.98

Northeast Dallas Ind 1,309 31,525,978 2,562,346 2,598,574 8.2% 1,191,301 1,944,695 270,000 $9.66

Northwest Dallas Ind 744 21,122,331 1,480,859 1,504,325 7.1% 402,953 349,281 484,000 $10.12

South Dallas Ind 381 4,439,850 85,204 85,204 1.9% (8,163) 0 0 $7.75

South Ft Worth Ind 924 13,513,721 484,995 544,892 4.0% (35,216) 18,600 0 $8.14

South Stemmons Ind 1,802 28,204,112 1,115,919 1,140,167 4.0% (15,696) 24,800 16,000 $11.15

Totals 6,946 132,473,569 8,149,712 8,320,453 6.3% 2,594,876 2,616,976 832,000 $9.80


Warehouse Market Statistics Year-End 2017



DFW Airport Ind 571 64,852,939 3,149,584 3,314,500 5.1% 1,653,707 1,976,219 2,174,702 $4.69

East Dallas Ind 1,321 42,180,777 1,358,976 1,368,976 3.2% 848,785 351,874 877,230 $4.50

Great SW/Arlington Ind 1,309 101,132,733 9,094,294 9,274,667 9.2% 3,544,509 7,001,315 3,227,650 $4.40

North Ft Worth Ind 1,241 86,865,938 4,453,190 4,473,990 5.2% 5,721,743 3,713,327 3,603,330 $5.33

Northeast Dallas Ind 1,764 85,532,412 3,983,259 4,645,629 5.4% 1,520,349 2,098,616 976,640 $4.94

Northwest Dallas Ind 1,339 89,887,173 3,269,939 3,391,709 3.8% 3,498,388 2,245,954 835,475 $5.14

South Dallas Ind 1,300 92,012,603 9,563,743 9,811,135 10.7% 4,460,028 6,933,030 7,351,835 $3.67

South Ft Worth Ind 2,516 78,050,691 4,165,618 4,223,218 5.4% (800,962) 1,046,053 333,611 $5.63


Totals 14,297 746,191,636 46,286,761 47,856,387 6.4% 20,298,713 26,109,129 20,079,406 $4.75


Total Industrial Market Statistics Year-End 2017



DFW Airport Ind 911 73,955,668 3,971,674 4,152,575 5.6% 1,663,416 1,982,819 2,174,702 $5.83

East Dallas Ind 1,974 50,700,626 2,280,647 2,290,647 4.5% 817,041 351,874 877,230 $4.95

Great SW/Arlington Ind 1,805 111,406,321 9,703,435 9,891,925 8.9% 3,898,594 7,012,315 3,227,650 $4.99

North Ft Worth Ind 1,538 92,637,349 4,520,677 4,544,277 4.9% 6,449,390 3,975,327 3,665,330 $5.53

Northeast Dallas Ind 3,073 117,058,390 6,545,605 7,244,203 6.2% 2,711,650 4,043,311 1,246,640 $6.48

Northwest Dallas Ind 2,083 111,009,504 4,750,798 4,896,034 4.4% 3,901,341 2,595,235 1,319,475 $6.37

South Dallas Ind 1,681 96,452,453 9,648,947 9,896,339 10.3% 4,451,865 6,933,030 7,351,835 $3.74

South Ft Worth Ind 3,440 91,564,412 4,650,613 4,768,110 5.2% (836,178) 1,064,653 333,611 $6.04


Totals 21,243 878,665,205 54,436,473 56,176,840 6.4% 22,893,589 28,726,105 20,911,406 $5.60


Existing Inventory Vacancy



Figures at a Glance






Figures at a Glance

Flex Submarket Statistics Year-End 2017



Allen/McKinney Ind 88 2,414,388 129,290 137,845 5.7% 66,428 68,000 190,000 $11.84

Arlington Ind 163 2,945,018 75,495 78,632 2.7% 272,080 11,000 0 $11.11

Central East Dallas . 441 5,054,695 117,568 117,568 2.3% (53,682) 0 0 $11.53

Delta County Ind 0 0 0 0 0.0% 0 0 0 $0.00

Denton Ind 58 1,918,456 60,300 60,300 3.1% 16,811 0 14,000 $7.38

E DFW Air/Las Colina. 154 6,511,434 683,113 694,259 10.7% (36,880) 0 0 $9.95

East Brookhollow Ind 120 1,921,557 139,974 139,974 7.3% 43,208 0 0 $14.84

East Dallas/Mesquite. 156 2,907,704 781,265 781,265 26.9% 36,076 0 0 $11.07

East Ft Worth Ind 287 4,820,163 135,594 135,594 2.8% 5,492 0 0 $7.27

East Hines North Ind 395 6,644,452 235,411 235,411 3.5% (24,600) 0 0 $8.15

Eastern Lonestar/Tpk. 159 2,244,203 100,123 100,123 4.5% (68,123) 0 16,000 $6.28

Forney/Terrll/Kauf C. 50 511,745 22,838 22,838 4.5% (14,138) 0 0 $4.74

Hood County Ind 19 184,303 8,953 8,953 4.9% 27,122 0 0 $6.74

Hunt County Ind 23 211,127 0 0 0.0% 14,250 14,250 0 $12.35

Johnson County Ind 51 563,359 10,780 10,780 1.9% 920 0 0 $11.12

Lewisville Ind 137 3,201,979 195,092 200,634 6.3% 360,527 330,000 470,000 $12.07

Lower Great Southwes. 190 3,204,191 154,565 154,565 4.8% 35,555 0 0 $8.43

Mansfield Ind 28 844,700 8,176 8,176 1.0% (4,796) 0 0 $13.84

Meacham Fld/Fossil C. 125 2,431,474 23,584 23,584 1.0% 244,477 12,000 0 $8.79

Metropolitan/Addison. 277 8,819,666 573,445 573,445 6.5% 126,821 0 0 $11.01

N Central Ft Worth I. 171 1,954,354 29,089 29,089 1.5% 45,548 0 0 $9.08

N Stemmons/Valwood I. 272 7,182,230 652,022 669,946 9.3% (101,206) 19,281 0 $8.21

NE Dallas/Garland In. 624 11,275,082 472,646 482,868 4.3% 903,014 1,000,000 0 $6.89

NE Tarrant/Alliance . 98 2,535,687 9,310 9,310 0.4% 472,851 250,000 62,000 $9.40

North Trinity Ind 522 6,467,976 304,962 322,594 5.0% (4,640) 0 0 $15.08

Outlying Collin Cnty. 16 158,191 65,300 65,300 41.3% 12,825 65,225 80,000 $11.90

Outlying Ellis Cnty . 46 432,743 0 0 0.0% 8,202 0 0 $9.00

Outlying Kaufman Cnt. 6 45,705 0 0 0.0% 0 0 0 $0.00

Parker County Ind 32 305,118 10,080 12,880 4.2% (2,769) 0 0 $9.83

Plano Ind 223 7,551,052 833,131 850,582 11.3% 111,239 467,460 0 $11.84

Redbird Airport Ind 64 811,295 11,199 11,199 1.4% (1,499) 0 0 $7.99

Richardson Ind 299 9,453,158 1,041,653 1,041,653 11.0% 87,971 329,760 0 $9.44

Rockwall Ind 36 462,980 20,326 20,326 4.4% (4,426) 0 0 $10.54

S Cen.Tarrant Cnty I. 80 1,816,790 55,794 66,491 3.7% 28,979 18,600 0 $7.05

S Central Ft Worth I. 220 2,389,996 62,633 62,633 2.6% 80,895 0 0 $9.04

SE Dallas/I-45 Ind 98 1,367,022 36,194 36,194 2.6% (23,230) 0 0 $6.80

Southwest Tarrant In. 68 940,056 173,976 223,176 23.7% (219,376) 0 0 $8.46

SW Dallas/US 67 Ind 173 1,828,790 37,811 37,811 2.1% 8,364 0 0 $7.93

Upper Great Southwes. 143 4,124,379 379,081 384,061 9.3% 46,450 0 0 $9.00

W DFW Air/Grapevine . 186 2,591,295 138,977 143,816 5.5% 46,589 6,600 0 $8.63

West Brookhollow Ind 381 7,850,680 265,719 272,335 3.5% 5,861 24,800 0 $8.06

West Hines North Ind 144 2,374,949 69,730 69,730 2.9% 22,198 0 0 $9.08

West Tarrant Ind 31 414,275 22,013 22,013 5.3% (7,346) 0 0 $15.79

Western Lonestar/Tpk. 81 700,295 0 0 0.0% 10,400 0 0 $8.65

Wise County Ind 11 84,857 2,500 2,500 2.9% 20,434 0 0 $4.65

Totals 6,946 132,473,569 8,149,712 8,320,453 6.3% 2,594,876 2,616,976 832,000 $9.80








Figures at a Glance

Warehouse Submarket Statistics Year-End 2017




Arlington Ind 463 19,678,316 2,218,496 2,254,122 11.5% 2,018,658 2,778,133 901,132 $4.33

Central East Dallas . 507 15,052,270 326,561 336,561 2.2% 1,157 0 0 $5.12

Delta County Ind 4 113,699 0 0 0.0% 0 0 0 $0.00

Denton Ind 286 10,540,769 368,242 401,742 3.8% 855,569 958,280 310,969 $6.11

E DFW Air/Las Colina. 279 47,969,527 2,445,180 2,605,796 5.4% 1,201,489 1,629,177 1,527,906 $4.39

East Brookhollow Ind 178 7,352,596 12,760 12,760 0.2% (7,790) 0 0 $8.24

East Dallas/Mesquite. 469 18,260,348 732,765 732,765 4.0% 648,967 351,874 877,230 $5.13

East Ft Worth Ind 713 20,791,178 1,337,076 1,388,676 6.7% 44,725 112,800 0 $5.25

East Hines North Ind 531 15,479,970 286,066 293,566 1.9% 96,642 0 0 $5.09

Eastern Lonestar/Tpk. 375 24,389,731 1,415,893 1,473,703 6.0% (67,146) 518,241 0 $3.70

Forney/Terrll/Kauf C. 310 8,365,515 248,600 248,600 3.0% 210,090 0 0 $4.03

Hood County Ind 106 844,629 59,084 59,084 7.0% (7,680) 27,000 0 $6.03

Hunt County Ind 138 7,110,532 639,901 639,901 9.0% (206,936) 0 0 $5.48

Johnson County Ind 408 9,957,406 153,062 153,062 1.5% 358,543 372,939 8,000 $6.40

Lewisville Ind 269 22,738,441 823,336 823,336 3.6% 1,640,727 484,011 288,606 $5.60

Lower Great Southwes. 397 33,818,366 723,692 731,102 2.2% 482,997 70,000 1,000,000 $4.50

Mansfield Ind 154 4,720,568 173,582 173,582 3.7% 68,705 0 0 $4.31

Meacham Fld/Fossil C. 497 39,876,661 1,619,453 1,630,453 4.1% 2,081,113 2,043,711 1,053,485 $5.57

Metropolitan/Addison. 239 12,721,549 506,745 506,745 4.0% (76,726) 0 0 $5.52


N Stemmons/Valwood I. 545 43,886,414 1,571,616 1,659,886 3.8% 1,078,818 803,663 235,900 $4.58

NE Dallas/Garland In. 847 41,603,649 2,254,397 2,851,986 6.9% 862,867 1,225,366 764,400 $4.12

NE Tarrant/Alliance . 310 38,001,609 2,335,075 2,335,075 6.1% 3,619,533 1,602,016 2,389,845 $4.75


Outlying Collin Cnty. 63 1,009,624 25,100 25,100 2.5% 170,149 168,000 0 $10.14

Outlying Ellis Cnty . 334 12,222,478 5,000 241,592 2.0% 166,356 0 0 $4.02

Outlying Kaufman Cnt. 35 502,644 51,050 51,050 10.2% (11,429) 0 0 $3.33

Parker County Ind 216 3,152,004 146,072 146,072 4.6% (16,701) 6,000 20,000 $7.21

Plano Ind 295 14,144,688 733,748 789,096 5.6% 243,616 185,750 9,970 $8.05

Redbird Airport Ind 201 19,239,875 390,642 395,642 2.1% 1,051,592 0 0 $3.55

Richardson Ind 111 9,155,456 117,288 126,721 1.4% (5,519) 0 0 $5.74

Rockwall Ind 111 3,097,039 36,250 36,250 1.2% 383,250 389,500 0 $6.73

S Cen.Tarrant Cnty I. 348 21,709,257 2,027,263 2,033,263 9.4% (1,288,636) 504,814 308,061 $5.01

S Central Ft Worth I. 331 8,602,742 178,094 178,094 2.1% (53,474) 0 0 $4.99

SE Dallas/I-45 Ind 400 34,057,052 6,337,705 6,343,505 18.6% 3,140,840 6,876,030 5,103,455 $3.70

Southwest Tarrant In. 113 1,848,021 79,751 79,751 4.3% (39,075) 28,500 17,550 $8.45

SW Dallas/US 67 Ind 365 26,493,198 2,830,396 2,830,396 10.7% 101,240 57,000 2,248,380 $3.52

Upper Great Southwes. 449 47,636,051 6,152,106 6,289,443 13.2% 1,042,854 4,153,182 1,326,518 $4.41

W DFW Air/Grapevine . 292 16,883,412 704,404 708,704 4.2% 452,218 347,042 646,796 $7.06

West Brookhollow Ind 1,050 34,856,995 451,636 481,776 1.4% (495,443) 0 0 $4.76


West Tarrant Ind 108 4,183,766 206,741 206,741 4.9% (29,003) 35,350 90,000 $5.56

Western Lonestar/Tpk. 150 11,052,450 4,591,149 4,591,149 41.5% 279,722 224,500 698,933 $4.49

Wise County Ind 110 1,651,898 145,849 155,649 9.4% 66,801 26,250 50,000 $6.06

Totals 14,297 746,191,636 46,286,761 47,856,387 6.4% 20,298,713 26,109,129 20,079,406 $4.75








Figures at a Glance

Total Industrial Submarket Statistics Year-End 2017




Arlington Ind 626 22,623,334 2,293,991 2,332,754 10.3% 2,290,738 2,789,133 901,132 $4.93

Central East Dallas . 948 20,106,965 444,129 454,129 2.3% (52,525) 0 0 $6.11

Delta County Ind 4 113,699 0 0 0.0% 0 0 0 $0.00

Denton Ind 344 12,459,225 428,542 462,042 3.7% 872,380 958,280 324,969 $6.22

E DFW Air/Las Colina. 433 54,480,961 3,128,293 3,300,055 6.1% 1,164,609 1,629,177 1,527,906 $5.55

East Brookhollow Ind 298 9,274,153 152,734 152,734 1.6% 35,418 0 0 $10.05

East Dallas/Mesquite. 625 21,168,052 1,514,030 1,514,030 7.2% 685,043 351,874 877,230 $5.76

East Ft Worth Ind 1,000 25,611,341 1,472,670 1,524,270 6.0% 50,217 112,800 0 $5.51

East Hines North Ind 926 22,124,422 521,477 528,977 2.4% 72,042 0 0 $6.03

Eastern Lonestar/Tpk. 534 26,633,934 1,516,016 1,573,826 5.9% (135,269) 518,241 16,000 $3.84

Forney/Terrll/Kauf C. 360 8,877,260 271,438 271,438 3.1% 195,952 0 0 $4.09

Hood County Ind 125 1,028,932 68,037 68,037 6.6% 19,442 27,000 0 $6.21

Hunt County Ind 161 7,321,659 639,901 639,901 8.7% (192,686) 14,250 0 $6.86

Johnson County Ind 459 10,520,765 163,842 163,842 1.6% 359,463 372,939 8,000 $6.50

Lewisville Ind 406 25,940,420 1,018,428 1,023,970 3.9% 2,001,254 814,011 758,606 $7.32

Lower Great Southwes. 587 37,022,557 878,257 885,667 2.4% 518,552 70,000 1,000,000 $5.15

Mansfield Ind 182 5,565,268 181,758 181,758 3.3% 63,909 0 0 $4.64

Meacham Fld/Fossil C. 622 42,308,135 1,643,037 1,654,037 3.9% 2,325,590 2,055,711 1,053,485 $5.71

Metropolitan/Addison. 516 21,541,215 1,080,190 1,080,190 5.0% 50,095 0 0 $8.19


N Stemmons/Valwood I. 817 51,068,644 2,223,638 2,329,832 4.6% 977,612 822,944 235,900 $5.19

NE Dallas/Garland In. 1,471 52,878,731 2,727,043 3,334,854 6.3% 1,765,881 2,225,366 764,400 $4.51

NE Tarrant/Alliance . 408 40,537,296 2,344,385 2,344,385 5.8% 4,092,384 1,852,016 2,451,845 $4.91


Outlying Collin Cnty. 79 1,167,815 90,400 90,400 7.7% 182,974 233,225 80,000 $11.11

Outlying Ellis Cnty . 380 12,655,221 5,000 241,592 1.9% 174,558 0 0 $4.60

Outlying Kaufman Cnt. 41 548,349 51,050 51,050 9.3% (11,429) 0 0 $3.33

Parker County Ind 248 3,457,122 156,152 158,952 4.6% (19,470) 6,000 20,000 $7.40

Plano Ind 518 21,695,740 1,566,879 1,639,678 7.6% 354,855 653,210 9,970 $9.95

Redbird Airport Ind 265 20,051,170 401,841 406,841 2.0% 1,050,093 0 0 $3.61

Richardson Ind 410 18,608,614 1,158,941 1,168,374 6.3% 82,452 329,760 0 $8.71

Rockwall Ind 147 3,560,019 56,576 56,576 1.6% 378,824 389,500 0 $7.62

S Cen.Tarrant Cnty I. 428 23,526,047 2,083,057 2,099,754 8.9% (1,259,657) 523,414 308,061 $5.20

S Central Ft Worth I. 551 10,992,738 240,727 240,727 2.2% 27,421 0 0 $5.72

SE Dallas/I-45 Ind 498 35,424,074 6,373,899 6,379,699 18.0% 3,117,610 6,876,030 5,103,455 $3.72

Southwest Tarrant In. 181 2,788,077 253,727 302,927 10.9% (258,451) 28,500 17,550 $8.46

SW Dallas/US 67 Ind 538 28,321,988 2,868,207 2,868,207 10.1% 109,604 57,000 2,248,380 $3.78

Upper Great Southwes. 592 51,760,430 6,531,187 6,673,504 12.9% 1,089,304 4,153,182 1,326,518 $4.99

W DFW Air/Grapevine . 478 19,474,707 843,381 852,520 4.4% 498,807 353,642 646,796 $7.63

West Brookhollow Ind 1,431 42,707,675 717,355 754,111 1.8% (489,582) 24,800 0 $5.16


West Tarrant Ind 139 4,598,041 228,754 228,754 5.0% (36,349) 35,350 90,000 $6.59

Western Lonestar/Tpk. 231 11,752,745 4,591,149 4,591,149 39.1% 290,122 224,500 698,933 $4.54

Wise County Ind 121 1,736,755 148,349 158,149 9.1% 87,235 26,250 50,000 $5.78

Totals 21,243 878,665,205 54,436,473 56,176,840 6.4% 22,893,589 28,726,105 20,911,406 $5.60








Figures at a Glance

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Historical Rental RatesBased on Quoted Rental Rates


Vacancy by Available Space Type Vacancy by Building TypePercent of All Vacant Space in Direct vs. Sublet Percent of All Vacant Space by Building Type


U.S. Rental Rate Comparison Future Space AvailableBased on Average Quoted Rental Rates Space Scheduled to be Available for Occupancy*

Source: CoStar Property® Source: CoStar Property® * Includes Under Construction Space

Dallas/Ft Worth United States Dallas/Ft Worth United States

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

2001 4q 2003 4q 2005 4q 2007 4q 2009 4q 2011 4q 2013 4q 2015 4q 2017 4q

Dol

lars

/SF/Y

ear


$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

2015 3q 2016 1q 2016 3q 2017 1q 2017 3q

Dol

lars

/SF/Y

ear


97%

3%

Direct Sublet

96%

4%

Direct Sublet

15%

85%

Flex Warehouse

12.4

4.2

0.0 0.3 0.0 0.2

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2018 1q 2018 3q 2019 1q

Millions

14%

86%

Flex Warehouse

Leasing Activity






Leasing Activity


* Renewal

Building Submarket SF Qtr Tenant Name Tenant Rep Company Landlord Rep Company

1 9500 S Polk St SW Dallas/US 67 Ind 1,300,000 3rd Kohler Co. N/A CBRE

2 Arlington Commerce Center - Building E Arlington Ind 1,004,400 1st UPS N/A Exeter Property Group

3 DalParc I-20 - Building 1 SE Dallas/I-45 Ind 920,275 3rd Amazon N/A CBRE

4 Wayfair SE Dallas/I-45 Ind 874,566 3rd Wayfair N/A N/A

5 Wildlife 6 Upper Great Southwest Ind 703,040 3rd Haier N/A Crow Holdings Industrial

6 Sandy Lake 121 Distribution Center E DFW Air/Las Colinas Ind 604,800 3rd Amazon.com CBRE Cushman & Wake�eld of Texas, Inc.

7 300 Gateway Pky NE Tarrant/Alliance Ind 603,050 4th N/A N/A CBRE

8 Lasko Products Inc* Meacham Fld/Fossil Cr Ind 505,000 1st Lasko Products, Inc. N/A N/A

9 35/820 @ Mercantile Center Meacham Fld/Fossil Cr Ind 492,322 2nd S&S Activewear Cushman & Wake�eld of Texas, Inc.; Lee & Associates

10 Commerce 20 - Building 2 SE Dallas/I-45 Ind 488,780 2nd N/A N/A CBRE

11 Millwork Distribution Center* SW Dallas/US 67 Ind 476,341 2nd DW Distribution Inc. N/A N/A

12 DFW Trade Center II* E DFW Air/Las Colinas Ind 401,572 1st KidKraft N/A CBRE

13 Liberty Park GSW South - Building 2 Arlington Ind 365,000 2nd Fedex N/A Liberty Property Trust

14 Alliance Westport 19 NE Tarrant/Alliance Ind 360,000 2nd N/A N/A Hillwood Properties

15 FedEx Ground Distribution Facility East Dallas/Mesquite Ind 351,874 2nd FedEx N/A N/A

16 Northport 35 Business Center - Building A NE Tarrant/Alliance Ind 349,425 1st Allen Distribution N/A Stream Realty Partners, LP

17 Southpointe 20/35 - Building 1 SE Dallas/I-45 Ind 343,421 2nd N/A CBRE Holt Lunsford Commercial, Inc.

18 Prologis Freeport Corporate Center 3* E DFW Air/Las Colinas Ind 335,480 1st KGP Logistics Lee & Associates Prologis

19 South Central Industrial SE Dallas/I-45 Ind 305,000 4th N/A N/A CBRE

20 5000 South Fwy S Cen.Tarrant Cnty Ind 300,890 4th N/A N/A TCRG Properties, LLC.

21 Ridge Railhead - Building 1 Meacham Fld/Fossil Cr Ind 299,000 1st Dematic N/A Lee & Associates

22 1700 Meacham Blvd* Meacham Fld/Fossil Cr Ind 295,000 1st Lasko Products N/A N/A

23 Prologis Northgate 18* NE Dallas/Garland Ind 267,690 2nd Speed FC N/A CBRE

24 35/20 Crossroads Distribution Center S Cen.Tarrant Cnty Ind 264,125 2nd N/A N/A Sealy & Company; Holt Lunsford Comm

25 Point West 400 E DFW Air/Las Colinas Ind 263,625 3rd XPO Logistics N/A Duke Realty Corporation

26 Logistics Pointe Distribution Ctr - Building NE Dallas/Garland Ind 260,959 2nd The Kraft Heinz Company CBRE CBRE

27 Liberty Park GSW North Building 2 Upper Great Southwest Ind 225,889 1st Geodis Logistics LLC CBRE JLL

28 Park 20/35 - Building 7 SE Dallas/I-45 Ind 211,948 1st Mars Pet Care N/A CBRE

29 Alliance Airport NE Tarrant/Alliance Ind 209,081 1st Robinson Aerospace N/A CBRE

30 Riverbend West Distribution Center East Ft Worth Ind 192,350 2nd Ecolab Jackson Cooksey Holt Lunsford Commercial, Inc.

31 Great Southwest Distribution Center - Lower Great Southwest Ind 179,875 3rd Biagi Brothers N/A Prologis

32 2901 W Kingsley Rd NE Dallas/Garland Ind 168,657 4th Hayes Retail N/A JLL

33 DFW Distribution Center* E DFW Air/Las Colinas Ind 167,820 1st BFS Services, Inc. Lee & Associates Transpaci�c Development Company

34 DCT Waters Ridge Lewisville Ind 165,705 3rd The Hillman Group, Inc. N/A Lee & Associates

35 Blue Linx* Meacham Fld/Fossil Cr Ind 161,911 1st Blue Linx N/A N/A

36 CentrePort Upper Great Southwest Ind 159,068 4th Image MicroSystems Stream Realty Partners, LP CBRE

37 Lasko Products, Inc.* Meacham Fld/Fossil Cr Ind 152,052 1st Lasko Products N/A N/A

38 CentrePort 5 Upper Great Southwest Ind 148,357 1st Suddath N/A CBRE

39 GSW Distribution Center 20 Lower Great Southwest Ind 147,645 1st PetMate Spartan Partners Inc Lee & Associates

40 Patriot Drive II* E DFW Air/Las Colinas Ind 140,000 1st CEVA Logistics N/A Stream Realty Partners, LP

Select Top Industrial Leases Based on Leased Square Footage For Deals Signed in 2017






Sales Activity

The Optimist Sales Index Average of Two Highest Price/SF's and Two Lowest Cap Rates Per Quarter

Source: CoStar COMPS®

Sales Volume & Price Sales Analysis by Building SizeBased on Industrial Building Sales of 15,000 SF and Larger Based on Industrial Bldg Sales From Oct. 2016 - Sept. 2017

Bldg Size # RBA $ Volume Price/SF Cap Rate

< 25,000 SF

44 645,307 $56,549,308 87.63$ 7.95%

25K-99K SF

37 1,698,510 $73,682,551 43.38$ 8.17%

100K-249K SF

13 1,910,829 $123,800,103 64.79$ 8.00%

>250K SF 17 9,942,526 $640,563,360 64.43$ 6.66%

Source: CoStar COMPS® Source: CoStar COMPS®

U.S. Price/SF Comparison U.S. Cap Rate ComparisonBased on Industrial Building Sales of 15,000 SF and Larger Based on Industrial Building Sales of 15,000 SF and Larger

Source: CoStar COMPS® Source: CoStar COMPS®

$30

$40

$50

$60

$70

$80

$90

2014 1q 2015 1q 2016 1q 2017 1q

Dallas/Ft Worth US

$0

$50

$100

$150

$200

$250

$300

$350

2014 1q 2015 1q 2016 1q 2017 1q

Millions

of

Sale

s V

olu

me D

ollars

$0

$10

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$30

$40

$50

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$70

$80

$90

Price

/SF

Sales Volume Price/SF

1.0%

2.0%

3.0%

4.0%

5.0%

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7.0%

8.0%

9.0%

10.0%

11.0%

2014 4q 2015 4q 2016 4q

Cap R

ate

Perc

enta

ge

$40

$90

$140

$190

$240

$290

Dolla

rs/SF

Cap Rate Price/SF

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

11.0%

2014 1q 2015 1q 2016 1q 2017 1q

Cap R

ate

Perc

enta

ge

Dallas/Ft Worth US






Dallas/Ft. Worth Industrial MarketMARKET HIGHLIGHTS - Flex & Warehouse

Sales Activity

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D F W A i r p o r t M a r k e t

Deliveries, Absorption & Vacancy Historical Analysis, Flex and Warehouse


Vacant Space Quoted Rental RatesHistorical Analysis, Flex and Warehouse Historical Analysis, Flex and Warehouse


Net QuotedPeriod # Bldgs Total RBA Vacant SF Vacancy % Absorption # Bldgs Total RBA # Bldgs Total RBA Rates

2017 4q 911 73,955,668 4,152,575 5.6% 463,667 3 282,128 8 2,174,702 $5.83

2017 3q 908 73,673,540 4,334,114 5.9% 1,129,224 2 504,356 9 2,262,895 $5.39

2017 2q 905 73,056,901 4,846,699 6.6% (311,243) 1 6,600 9 2,232,738 $5.45

2017 1q 904 73,050,301 4,528,856 6.2% 381,768 12 1,189,735 8 1,929,181 $5.60

2016 4q 892 71,860,566 3,720,889 5.2% 2,187,795 2 204,175 20 3,118,916 $5.60

2016 3q 890 71,656,391 5,704,509 8.0% 575,521 2 167,796 14 1,256,045 $5.59

2016 2q 888 71,488,595 6,112,234 8.5% (90,718) 0 0 12 1,118,898 $5.57

2016 1q 889 71,811,185 6,344,106 8.8% (23,801) 5 804,121 12 1,118,898 $5.70

2015 4q 884 71,007,064 5,516,184 7.8% 2,078,588 3 510,019 12 1,488,347 $5.87

2015 3q 881 70,497,045 7,084,753 10.0% (447,981) 5 520,902 8 1,154,676 $5.68

2015 2q 875 69,939,463 6,079,190 8.7% 112,367 1 5,965 10 1,275,850 $5.53

2015 1q 874 69,933,498 6,185,592 8.8% (230,812) 10 1,288,400 11 1,281,815 $5.85

2014 4q 864 68,645,098 4,666,380 6.8% 678,420 2 1,373,000 18 2,276,776 $5.88

2014 3q 862 67,272,098 3,971,800 5.9% 1,340,135 2 423,778 12 2,661,400 $5.73

2014 2q 860 66,848,320 4,888,157 7.3% (67,441) 2 263,444 9 2,507,180 $5.73

2014 1q 858 66,584,876 4,557,272 6.8% 200,126 4 646,904 6 2,060,222 $5.45


UC InventoryDelivered InventoryExisting Inventory Vacancy

(1.000)

(0.500)

0.000

0.500

1.000

1.500

2.000

2.500

2014 1q 2014 2q 2014 3q 2014 4q 2015 1q 2015 2q 2015 3q 2015 4q 2016 1q 2016 2q 2016 3q 2016 4q 2017 1q 2017 2q 2017 3q 2017 4q

Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Perce

nt V

aca

nt

Delivered SF Absorption SF Vacancy

$5.10

$5.20

$5.30

$5.40

$5.50

$5.60

$5.70

$5.80

$5.90

2016 1q 2016 3q 2017 1q 2017 3q

Dollars

/SF/Y

ear

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

2016 1q 2016 3q 2017 1q 2017 3q

Millions

SF

Direct SF Sublet SF







E a s t D a l l a s M a r k e t






2017 4q 1,974 50,700,626 2,290,647 4.5% 229,473 0 0 1 877,230 $4.95

2017 3q 1,974 50,700,626 2,520,120 5.0% 295,601 1 351,874 0 0 $4.37

2017 2q 1,971 50,334,752 2,459,847 4.9% 331,641 0 0 2 355,874 $4.31

2017 1q 1,969 50,326,752 2,783,488 5.5% (39,674) 0 0 4 363,874 $4.28

2016 4q 1,969 50,326,752 2,743,814 5.5% (21,822) 0 0 3 359,874 $4.08

2016 3q 1,970 50,397,863 2,793,103 5.5% 165,023 0 0 0 0 $4.05

2016 2q 1,971 50,437,633 2,997,896 5.9% (284,323) 0 0 0 0 $4.13

2016 1q 1,971 50,437,633 2,713,573 5.4% (293,696) 3 34,755 0 0 $3.98

2015 4q 1,969 50,410,542 2,392,786 4.7% 906,646 0 0 3 34,755 $3.87

2015 3q 1,968 50,404,542 3,293,432 6.5% 701,962 0 0 3 35,755 $3.84

2015 2q 1,968 50,404,542 3,995,394 7.9% (689,542) 0 0 1 6,000 $3.80

2015 1q 1,967 50,400,942 3,302,252 6.6% (309,870) 0 0 1 3,600 $3.14

2014 4q 1,968 50,425,942 3,017,382 6.0% (52,009) 1 90,000 1 3,600 $3.05

2014 3q 1,968 50,368,592 2,908,023 5.8% (95,628) 0 0 1 90,000 $2.99

2014 2q 1,968 50,368,592 2,812,395 5.6% 685,868 2 13,500 1 90,000 $3.03

2014 1q 1,970 50,374,129 3,503,800 7.0% 94,971 2 9,373 3 103,500 $3.14



(0.800)

(0.600)

(0.400)

(0.200)

0.000

0.200

0.400

0.600

0.800

1.000


Millions

SF

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

Perce

nt V

aca

nt


$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

2016 1q 2016 3q 2017 1q 2017 3q

Dollars

/SF/Y

ear

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

2016 1q 2016 3q 2017 1q 2017 3q

Millions

SF

Direct SF Sublet SF







G r e a t S W / A r l i n g t o n M a r k e t






2017 4q 1,805 111,406,321 9,891,925 8.9% 1,996,465 6 2,248,739 7 3,227,650 $4.99

2017 3q 1,799 109,157,582 9,639,651 8.8% 106,210 1 750,000 12 4,981,871 $4.63

2017 2q 1,798 108,407,582 8,995,861 8.3% 1,398,123 6 1,351,526 12 4,899,871 $4.57

2017 1q 1,792 107,056,056 9,042,458 8.4% 397,796 8 2,662,050 15 4,585,397 $4.50

2016 4q 1,784 104,198,129 6,582,327 6.3% 1,354,751 5 1,461,162 20 6,542,718 $4.60

2016 3q 1,777 102,375,417 6,114,366 6.0% 460,061 3 917,480 22 7,095,565 $4.51

2016 2q 1,771 100,901,198 5,100,208 5.1% 124,993 2 597,455 23 6,621,712 $4.50

2016 1q 1,769 100,303,743 4,627,746 4.6% 623,915 5 757,229 16 4,748,697 $4.48

2015 4q 1,764 99,546,514 4,494,432 4.5% 1,134,738 0 0 16 4,060,674 $4.48

2015 3q 1,763 99,400,935 5,483,591 5.5% 320,768 2 497,400 11 2,760,986 $4.38

2015 2q 1,760 98,791,535 5,194,959 5.3% 200,037 0 0 7 1,288,330 $4.71

2015 1q 1,760 98,791,535 5,394,996 5.5% 1,657,926 4 1,077,958 6 1,246,181 $4.68

2014 4q 1,756 97,713,577 5,974,964 6.1% 209,880 4 912,958 8 1,832,937 $4.76

2014 3q 1,753 97,241,981 5,713,248 5.9% 833,267 2 431,521 8 1,821,495 $4.66

2014 2q 1,751 96,810,460 6,114,994 6.3% 569,689 1 667,635 10 2,253,016 $4.53

2014 1q 1,750 96,142,825 6,017,048 6.3% 1,636,546 3 1,169,543 7 2,278,072 $4.52



0.000

0.500

1.000

1.500

2.000

2.500

3.000


Millions

SF

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

Perce

nt V

aca

nt


$4.20

$4.30

$4.40

$4.50

$4.60

$4.70

$4.80

$4.90

$5.00

$5.10

2016 1q 2016 3q 2017 1q 2017 3q

Dollars

/SF/Y

ear

0.00

2.00

4.00

6.00

8.00

10.00

12.00

2016 1q 2016 3q 2017 1q 2017 3q

Millions

SF

Direct SF Sublet SF







N o r t h F t W o r t h M a r k e t






2017 4q 1,538 92,637,349 4,544,277 4.9% 1,262,427 4 658,656 15 3,665,330 $5.53

2017 3q 1,533 91,878,693 5,048,048 5.5% 2,362,050 9 1,689,535 17 3,591,501 $4.73

2017 2q 1,524 90,205,927 5,737,332 6.4% 1,387,528 12 85,600 25 5,038,286 $4.62

2017 1q 1,511 90,119,077 7,038,010 7.8% 1,437,385 6 1,541,536 27 4,520,737 $4.31

2016 4q 1,505 88,577,541 6,933,859 7.8% 1,910,629 8 1,386,979 14 3,141,478 $4.35

2016 3q 1,494 87,127,902 7,394,849 8.5% 2,634,936 5 1,900,500 19 3,247,175 $4.25

2016 2q 1,489 85,227,402 8,129,285 9.5% 77,230 3 585,253 21 5,082,075 $4.33

2016 1q 1,487 84,652,949 7,632,062 9.0% 2,601,313 9 1,462,835 9 3,655,300 $4.13

2015 4q 1,479 83,192,994 8,773,420 10.5% (302,331) 3 559,367 17 4,578,687 $4.11

2015 3q 1,476 82,633,627 7,911,722 9.6% (1,531,446) 3 238,038 15 3,745,455 $4.10

2015 2q 1,473 82,395,589 6,142,238 7.5% 1,016,791 2 1,346,487 11 2,120,150 $4.08

2015 1q 1,471 81,049,102 5,812,542 7.2% 1,144,053 5 1,468,250 7 1,789,602 $4.03

2014 4q 1,467 79,589,452 5,496,945 6.9% 324,836 7 2,399,764 8 2,823,487 $4.13

2014 3q 1,457 77,164,488 3,396,817 4.4% 279,588 5 983,001 16 4,935,093 $4.15

2014 2q 1,449 76,100,269 2,612,186 3.4% 16,321 0 0 21 5,974,562 $4.41

2014 1q 1,447 76,044,082 2,572,320 3.4% 1,439,669 2 9,200 19 5,695,253 $4.46



(2.000)

(1.500)

(1.000)

(0.500)

0.000

0.500

1.000

1.500

2.000

2.500

3.000


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Perce

nt V

aca

nt


$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

2016 1q 2016 3q 2017 1q 2017 3q

Dollars

/SF/Y

ear

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

2016 1q 2016 3q 2017 1q 2017 3q

Millions

SF

Direct SF Sublet SF







N o r t h e a s t D a l l a s M a r k e t






2017 4q 3,073 117,058,390 7,244,203 6.2% 1,239,655 8 1,418,500 12 1,246,640 $6.48

2017 3q 3,065 115,639,890 7,065,358 6.1% 116,611 1 270,016 18 2,456,900 $6.04

2017 2q 3,063 115,355,669 6,911,953 6.0% 1,442,654 6 1,246,000 15 1,958,516 $5.99

2017 1q 3,058 114,429,758 7,434,696 6.5% (87,270) 9 1,108,795 21 3,204,516 $6.03

2016 4q 3,050 113,335,168 6,238,631 5.5% 132,502 4 275,461 23 3,656,311 $6.41

2016 3q 3,046 113,059,707 6,095,672 5.4% 537,204 2 50,096 24 2,778,256 $6.22

2016 2q 3,044 113,009,611 6,582,780 5.8% (45,472) 1 121,835 24 2,746,102 $6.24

2016 1q 3,044 112,897,956 6,425,653 5.7% 1,384,274 6 334,976 11 1,446,616 $6.11

2015 4q 3,038 112,562,980 7,474,951 6.6% 363,397 4 792,249 8 631,811 $5.89

2015 3q 3,032 111,764,031 7,039,399 6.3% (231,116) 3 288,616 13 1,255,760 $5.96

2015 2q 3,026 111,413,185 6,457,437 5.8% 1,045,611 1 51,000 14 1,432,341 $6.00

2015 1q 3,024 111,354,585 7,444,448 6.7% 1,307,494 5 35,362 11 1,088,019 $6.13

2014 4q 3,020 111,353,052 8,750,409 7.9% 1,067,740 2 429,540 11 544,107 $5.99

2014 3q 3,022 110,950,666 9,415,763 8.5% 888,929 1 9,530 11 683,587 $5.91

2014 2q 3,020 110,933,136 10,287,162 9.3% 207,909 2 55,834 5 469,070 $6.00

2014 1q 3,020 110,932,124 10,494,059 9.5% 767,863 1 117,261 6 502,904 $6.01



(0.400)

(0.200)

0.000

0.200

0.400

0.600

0.800

1.000

1.200

1.400

1.600


Millions

SF

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

Perce

nt V

aca

nt


$5.70

$5.80

$5.90

$6.00

$6.10

$6.20

$6.30

$6.40

$6.50

$6.60

2016 1q 2016 3q 2017 1q 2017 3q

Dollars

/SF/Y

ear

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

2016 1q 2016 3q 2017 1q 2017 3q

Millions

SF

Direct SF Sublet SF







N o r t h w e s t D a l l a s M a r k e t






2017 4q 2,083 111,009,504 4,896,034 4.4% 1,128,345 4 688,888 13 1,319,475 $6.37

2017 3q 2,079 110,320,616 5,335,491 4.8% 695,423 6 159,783 12 1,707,394 $6.08

2017 2q 2,072 110,153,033 5,863,331 5.3% 609,793 5 312,003 16 1,738,177 $6.19

2017 1q 2,067 109,841,030 6,161,121 5.6% 1,467,780 10 1,434,561 16 1,868,374 $6.01

2016 4q 2,057 108,406,469 6,194,340 5.7% 871,977 4 747,972 23 2,959,595 $6.16

2016 3q 2,053 107,658,497 6,318,345 5.9% 1,851,441 2 338,355 25 3,224,782 $5.89

2016 2q 2,051 107,320,142 7,831,431 7.3% (268,911) 3 577,890 19 3,345,706 $5.76

2016 1q 2,048 106,742,252 6,984,630 6.5% 728,544 6 562,650 15 2,953,415 $5.59

2015 4q 2,042 106,179,602 7,150,524 6.7% 870,416 7 696,985 15 2,195,783 $5.71

2015 3q 2,035 105,482,617 7,323,955 6.9% 1,372,511 4 312,924 20 2,685,368 $5.77

2015 2q 2,031 104,817,333 8,031,182 7.7% 1,467,128 2 407,600 20 2,853,322 $5.74

2015 1q 2,029 104,409,733 9,090,710 8.7% 188,358 6 1,084,894 18 2,741,592 $5.81

2014 4q 2,024 103,346,117 8,215,452 7.9% 583,068 5 1,555,163 15 2,436,832 $6.00

2014 3q 2,019 102,604,197 8,056,600 7.9% (37,892) 4 171,115 16 3,170,747 $5.94

2014 2q 2,015 102,433,082 7,847,593 7.7% 49,799 2 260,286 14 2,867,121 $5.75

2014 1q 2,012 102,162,796 7,627,106 7.5% 1,251,081 3 584,696 13 2,333,625 $5.73



(0.500)

0.000

0.500

1.000

1.500

2.000


Millions

SF

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

Perce

nt V

aca

nt


$5.20

$5.40

$5.60

$5.80

$6.00

$6.20

$6.40

$6.60

2016 1q 2016 3q 2017 1q 2017 3q

Dollars

/SF/Y

ear

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

2016 1q 2016 3q 2017 1q 2017 3q

Millions

SF

Direct SF Sublet SF







S o u t h D a l l a s M a r k e t






2017 4q 1,681 96,452,453 9,896,339 10.3% 2,231,071 1 754,897 10 7,351,835 $3.74

2017 3q 1,678 95,341,587 11,016,544 11.6% 710,515 6 2,142,672 10 5,788,135 $3.72

2017 2q 1,672 93,198,915 9,584,387 10.3% 499,628 3 1,304,642 13 6,153,195 $3.78

2017 1q 1,669 91,894,273 8,779,373 9.6% 1,010,651 5 2,730,819 13 5,630,560 $3.93

2016 4q 1,664 89,163,454 7,059,205 7.9% (153,537) 3 1,101,329 16 7,282,999 $3.98

2016 3q 1,661 88,062,125 5,804,339 6.6% 2,520,953 6 1,514,980 14 7,207,462 $3.86

2016 2q 1,656 86,549,767 6,812,934 7.9% 2,636,611 7 2,959,898 17 7,251,439 $3.77

2016 1q 1,648 83,135,461 6,035,239 7.3% 843,472 2 282,748 23 9,571,006 $3.77

2015 4q 1,646 82,852,713 6,595,963 8.0% 1,329,655 8 2,991,196 18 7,298,923 $3.61

2015 3q 1,638 79,861,517 4,934,422 6.2% 349,718 2 1,151,380 18 6,256,700 $3.59

2015 2q 1,636 78,710,137 4,132,760 5.3% 3,139,461 2 1,499,508 11 4,392,216 $3.45

2015 1q 1,634 77,210,629 5,772,713 7.5% 1,727,437 2 1,406,027 10 4,673,956 $3.59

2014 4q 1,632 75,804,602 6,094,123 8.0% 341,873 3 1,956,783 12 6,079,983 $3.58

2014 3q 1,629 73,847,819 4,479,213 6.1% 3,154 1 3,000 13 6,896,606 $3.58

2014 2q 1,628 73,844,819 4,479,367 6.1% (158,763) 0 0 4 2,225,665 $3.54

2014 1q 1,628 73,844,819 4,320,604 5.9% 1,896,894 6 2,369,117 2 2,217,480 $3.41



(0.500)

0.000

0.500

1.000

1.500

2.000

2.500

3.000

3.500


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Perce

nt V

aca

nt


$3.55

$3.60

$3.65

$3.70

$3.75

$3.80

$3.85

$3.90

$3.95

$4.00

$4.05

2016 1q 2016 3q 2017 1q 2017 3q

Dollars

/SF/Y

ear

0.00

2.00

4.00

6.00

8.00

10.00

12.00

2016 1q 2016 3q 2017 1q 2017 3q

Millions

SF

Direct SF Sublet SF







S o u t h F t W o r t h M a r k e t






2017 4q 3,440 91,564,412 4,768,110 5.2% (824,535) 6 763,964 4 333,611 $6.04

2017 3q 3,434 90,807,648 3,186,811 3.5% 123,329 5 48,439 8 794,314 $5.72

2017 2q 3,430 90,789,456 3,291,948 3.6% 52,989 3 174,250 12 825,203 $5.61

2017 1q 3,425 90,602,206 3,160,687 3.5% (187,961) 6 78,000 10 332,689 $5.47

2016 4q 3,419 90,524,206 2,894,726 3.2% 473,265 4 334,625 11 269,689 $4.89

2016 3q 3,413 90,172,081 3,015,866 3.3% 580,480 2 39,677 12 579,125 $4.70

2016 2q 3,409 90,128,653 3,552,918 3.9% 578,001 1 23,492 13 575,053 $4.65

2016 1q 3,405 90,094,071 4,096,337 4.5% 123,534 1 16,575 8 228,260 $4.77

2015 4q 3,404 90,077,496 4,203,296 4.7% 330,744 4 138,900 7 241,084 $4.74

2015 3q 3,399 89,936,196 4,392,740 4.9% 805,738 5 113,950 7 312,875 $4.66

2015 2q 3,394 89,822,246 5,084,528 5.7% (773,399) 1 12,000 11 271,825 $4.56

2015 1q 3,395 89,892,246 4,381,129 4.9% (68,762) 3 34,750 7 163,050 $4.47

2014 4q 3,394 89,957,996 4,378,117 4.9% (694,054) 0 0 6 141,950 $4.42

2014 3q 3,394 89,957,996 3,684,063 4.1% 223,575 2 101,581 4 71,950 $4.22

2014 2q 3,391 89,847,215 3,796,857 4.2% 347,352 1 94,000 3 110,781 $4.29

2014 1q 3,393 89,962,210 4,259,204 4.7% (177,649) 4 67,500 4 204,781 $4.16



(1.000)

(0.800)

(0.600)

(0.400)

(0.200)

0.000

0.200

0.400

0.600

0.800

1.000


Millions

SF

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Perce

nt V

aca

nt


$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

2016 1q 2016 3q 2017 1q 2017 3q

Dollars

/SF/Y

ear

0.00

1.00

2.00

3.00

4.00

5.00

6.00

2016 1q 2016 3q 2017 1q 2017 3q

Millions

SF

Direct SF Sublet SF







S o u t h S t e m m o n s M a r k e t






2017 4q 4,738 133,880,482 8,492,730 6.3% (70,568) 2 24,800 6 714,933 $6.27

2017 3q 4,736 133,855,682 8,397,362 6.3% (540,707) 0 0 8 739,733 $6.15

2017 2q 4,737 133,884,078 7,885,051 5.9% 713,671 2 224,500 8 739,733 $6.41

2017 1q 4,737 134,229,058 8,975,098 6.7% (265,926) 1 518,241 2 224,500 $6.20

2016 4q 4,736 133,710,817 8,190,931 6.1% 175,850 1 292,200 3 742,741 $6.12

2016 3q 4,736 133,424,917 8,080,881 6.1% 535,110 0 0 3 1,025,441 $6.00

2016 2q 4,736 133,424,917 8,615,991 6.5% (41,681) 1 4,080 2 810,441 $5.85

2016 1q 4,740 133,530,077 8,679,470 6.5% 221,131 2 273,845 2 296,280 $5.92

2015 4q 4,740 133,278,286 8,648,810 6.5% 1,104,852 3 31,326 3 277,925 $5.75

2015 3q 4,741 133,485,260 9,960,636 7.5% 165,918 1 221,844 5 305,171 $5.63

2015 2q 4,745 133,531,786 10,173,080 7.6% 671,377 0 0 4 510,083 $5.48

2015 1q 4,744 133,517,361 10,830,032 8.1% 850,022 1 376,601 6 533,583 $5.37

2014 4q 4,749 133,171,071 11,333,764 8.5% 231,022 2 22,351 6 645,771 $5.10

2014 3q 4,750 133,193,480 11,587,195 8.7% 556,860 2 94,500 6 644,622 $5.05

2014 2q 4,750 133,136,380 12,086,955 9.1% 704,600 1 168,000 6 140,677 $4.82

2014 1q 4,752 133,051,251 12,706,426 9.6% (2,366,646) 4 129,759 5 274,000 $4.82



(3.000)

(2.500)

(2.000)

(1.500)

(1.000)

(0.500)

0.000

0.500

1.000

1.500


Millions

SF

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Perce

nt V

aca

nt


$5.50

$5.60

$5.70

$5.80

$5.90

$6.00

$6.10

$6.20

$6.30

$6.40

$6.50

2016 1q 2016 3q 2017 1q 2017 3q

Dollars

/SF/Y

ear

7.20

7.40

7.60

7.80

8.00

8.20

8.40

8.60

8.80

9.00

9.20

2016 1q 2016 3q 2017 1q 2017 3q

Millions

SF

Direct SF Sublet SF

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