SUBMARKET INTELLIGENCE SOUTH FORT WORTH
HLC OUTLOOK The South Fort Worth industrial submarket posted a 1Q 2020 vacancy of 4.4%, a figure down from 5.5% in 4Q 2019, which is the lowest 1Q vacancy rate out of all major industrial DFW submarkets. This decrease in vacancy is due to no new deliveries yet in 2020 coupled with the fact that the submarket had a large portion of its new construction leased. Spec developments owned by Cabot, Majestic, and Hunt Southwest are all 100% leased. Everman Trade Center, a 457K SF four (4) building project, is 56% leased with leases out that will push the project to 60% leased.
18+ YEARS CRE EXPERIENCE MATT CARTHEY
Partner mcarthey@holtlunsford.com 817.710.1111
Absorption
vs. Prev. Qtr
vs. 12 Mths Ago
610,376
(232,148)
194,027
Vacancy
vs. Prev. Qtr
vs. 12 Mths Ago
4.4%
5.2%
3.9%
Leasing Act.
vs. Prev. Qtr
vs. 12 Mths Ago
477,246
1,535,344
827,028
U/C SF
vs. Prev. Qtr
vs. 12 Mths Ago
HLC Deal
Southwest Drive with Hickman Companies.
• RW Solutions has signed a 21,404 SF lease in 7524
1,487,422
893,603
Delivered SF
vs. Prev. Qtr
vs. 12 Mths Ago
120,000
TOP LEASE TRANSACTIONS • Novinium, Inc. has signed a 25K SF lease in 9300 HLC Deal
2,546,403 -
The South Fort Worth submarket also had an incredible 1Q start with more than 610K SF of absorption, a figure up 4.5 times from 1Q 2019. The market is also incredibly active on the development front. Crow Holdings and Rob Riner Companies are delivering 1,058,844 SF in a four (4) building spec project, while Black Creek Group has pads poured on its 569K SF three (3) building project located on the southwest corner of Joel East and Oak Grove. Finally, the latest groundbreaking is Majestic’s 489,150 SF two (2) building project at its Fort Worth South Business Park. The two newest announcements in the submarket are Jackson Shaw’s three (3) building 562,670 SF spec development, 46 Ranch Logistics Park, and Ascendant Commercial’s 858,420 SF crossdock. Both developments will not begin dirt work till late 2020. While there is still upward of 5.2M SF of proposed development in the pipeline, we don’t expect these sites to be put in production in the near future as Majestic, Mereken Land, Carter Foundation, Hillwood, and TCRG control most of the developable tracts and are currently holding for build-to-suits before building on a speculative basis.
Jack Newell Boulevard with Edificio Building
• Easy Ice has signed a 15K SF lease in 1300 S Forum
457,745
Way with Floyd Ventures.
• OFG, LLC has signed a 12K SF lease at 3333 E Loop
HLC Deal
VITAL STATS
6.0%
1,250,000
820 S with Johnson Properties, LLC.
1,050,000 5.0%
850,000 650,000
4.0%
450,000 3.0%
250,000 50,000
2.0%
-150,000 -350,000
1.0%
-550,000 0.0%
-750,000 1Q 17
2Q 17
3Q 17
4Q 17
Absorption
1Q 18
2Q 18
3Q 18
4Q 18
Deliveries
1Q 19
2Q 19
3Q 19
4Q 19
1Q 20
Vacancy
Source: CoStar 1Q 2020 Industrial Report
DEALS IN THE MARKET • 3131 W Bolt Street – a 136,570 SF building • 600 S 2nd Avenue – a 81,154 SF building • 4709 Edgewood Terrace – a 48,988 SF building • 3535 Alice Street – a 43,280 SF building
NEW DEVELOPMENTS • Carter Distribution Center FED – a 1,058,844 SF HLC Deal
four (4) building project with Rob Riner Companies and Crow Holdings Capital • Joel East and Oak Grove Road – a 569K SF three (3) building project with Black Creek Group • Fort Worth South Business Park | Buildings 2 and 3 – a 489,150 SF two (2) building project with Majestic Realty • 501 Easy Drive – a 173,603 SF building expansion with Klein Tools
LARGE EXISTING VACANCIES • 7550 Oak Grove Road – 471,847 SF • 301 E Risinger Road – 148,450 SF • 1400 W Everman Parkway – 145K SF • 6633 Oak Grove Road – 135,141 SF (Sublease) • 6445 Will Rogers Boulevard – 122,500 SF (Sublease) • 8300 South Freeway – 106,308 SF • 301 E Risinger Road – 71,850 SF 15