NORTHWEST DALLAS

Current Events

Through Q1 2023, the Northwest Dallas industrial submarket continues to be one of the strongest-performing submarkets in DFW. Valwood is a haven for building supply companies as well as 3PL’s with direct access to I-35. Billingsley, Longpoint, Panattoni, and TA Realty have leased their recent developments in Valwood. The Metropolitan/Addison submarket is extremely tight from a vacancy standpoint as there are no more available sites for development. Lastly, as developers move north to track down sites in Denton and Sanger, Highway 121 is now centrally located in the DFW market and an extremely desirable location for users. The Northwest Dallas submarket started the year off with a 4.3% vacancy rate which will stay along that number in Q2 2023 as the final wave of developments on Highway 121 deliver, which will be leased soon after delivery.

Top Lease Transactions

• SMS has signed a 117,843 SF lease at Bridge Logistics new development at 280 E Corporate Drive in Lewisville.

• Rinchem, Inc. renewed their 54K SF lease at 4650 Simonton in Farmers Branch.

• K-9 Culture signed a 53,149 SF lease at 1000 Crosby in Valwood.

• Vallen has signed a 37,773 SF lease at Link’s new Live Oak development located at 4101 Live Oak Drive in The Colony.

• A&W Trucking renewed their 32K SF lease with Principal Financial Group at 13920 Senlac located in Valwood.

• Interface Systems signed a 30,860 SF lease in Carrollton at PDL Flooring’s new development at 3005 Belmeade.

Deals In The Market

• Mary Kay Distribution Center – 186K SF currently on the market for sale located in the Frankford Trade Center pocket in Valwood

Vital Stats

New Developments

• Exeter Westpark II – a 1.1M SF development with Exeter in Denton, set for completion in Q2 2023

• Exeter Westpark III – a 421,200 SF development with Exeter in Denton, set for completion in Q3 2023

• Denton Crossing 1 and 2 – a 699K SF two (2) building crossdock project with Scannell, set for completion in Q2 2023

• Urban District 35 – a 441K SF four (4) building project with Urban Logistics Realty located in Denton with I-35 frontage, set for completion in Q2 2023

• ICC - 35 – a 1.1M SF three (3) building project with CLX Ventures located directly off of Loop 288 and I-35 in Denton, set for completion in Q4 2023

• 3333 University Drive – Billingsley is under construction on a two (2) building project in Denton totaling over 900K SF, set for completion Q3 2023

• 288/380 Logistics Park – an 800K SF four (4) building project with Velocis in Denton located at Loop 288 and 380, set for completion in Q3 2023

• Live Oak Logistics Park, Phase II – They are under construction on their final phase with two buildings totaling 240K SF, set for completion in Q3 2023

• Red River Business Park – Hines is under construction on their three (3) building development in Lewisville at Highway 121 and I-35. The SF totals 248,936 set for completion in Q3 2023

South Dallas

Vital Stats

Current Events

The overall South Dallas Industrial submarket as surveyed off I-30 west of downtown, I-20, & I-45 is approximately 167 Million SF. In accordance with the area surveyed, CoStar is reporting positive Net Absorption of 4,178,031 SF for South Dallas in Q1 2023. Despite the positive Net Absorption this combined sector of the industrial market is now 10.0% vacant which is 3.5% higher than reported in Q4 2022. According to CoStar research South Dallas delivered 10.8 Million SF in Q1 of 2023 and still has 16.7 Million SF remaining under construction in the I-30, I-20, & I-45 corridors. Besides the residual projects under construction, this submarket has another 18 Million SF planned development positioned for the future.

Top Lease Transactions

• DSV leased 1,037,316 SF from MetLife/Panattoni at 3701 Midpoint Drive in Lancaster, Texas just south of I-20.

• Blue Triton leased 603,328 SF from AEW at 2900 West Drive in Lancaster, Texas just east of I-35 and south of I-20. French Settlement Road in Dallas off Interstate 30.

• William-Sonoma leased 383,899 SF from Principal Real Estate Investors at 2200 Danieldale Road, in Lancaster, Texas just south of Interstate 20.

• Undisclosed Freezer/Cooler tenant leased 205,931 SF from Cold Summit Development at 2800 Cedardale Road in Dallas, Texas east of Dallas Ave south of I-20.

• Allied Stone leased 110,600 SF from EQT/Exeter at 2050 Kestrel Ave in DeSoto, Texas just south of Interstate 20 off Hampton Road.

Deals In The Market

• 3199 Telephone Road – LINK (Seller) offering 920,275 SF leased to Amazon south of I-20

• 3800 Cedardale Road – Arcapita (Seller) offering 776,629 SF leased to FedEx off I-20

• 1600 N Polk Street – 350,798 SF offered by Modlo

Large Existing Vacancies

• 1301 & 1501 Southport Parkway (Building 1 & 2) for 2,126,880 SF with Xebec in Wilmer, Texas

• 3486 Cedardale Road – 1,084,460 SF with Trammell Crow Company

• 950 N Interstate Highway 45 – 1,013,833 SF with Majestic Realty

• 4235 Singleton Boulevard – 1,005,200 SF with Lovett Commercial (shell complete)

• 601 Distribution Drive – 610,662 SF spec with Champion Partners

• 4601 Langdon Road – 488,780 SF with LINK (2nd generation)

• Crystal Lake Boulevard & Dan Morton – 467,541 SF with Eider Creek Capital (shell complete)

For the past 3 years, the South Dallas submarket of I-30, I-20, and I-45 has enjoyed an average single-digit vacancy rate of 6.025%. However, the rapid pace of an abundance of construction projects and deliveries has flooded this submarket with inventory. Deliveries have outpaced tenant demand in the changing macro-economic environment hence washing away the previous single-digit vacancy along Interstate 20 and Interstate.

Please note: CoStar’s South Dallas boundaries do not include the west Dallas I-30 corridor. As such, their data in the charts will vary.