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DALLAS’ Market Report

The Quarter Third Quarter | 2013


table contents OFFICE 06

CENTRAL BUSINESS DISTRICT

08

UPTOWN / TURTLE CREEK

10

RICHARDSON

12

QUORUM / BENT TREE

14

UPPER TOLLWAY / WEST PLANO

16

CENTRAL EXPRESSWAY

18

PRESTON CENTER

20

LAS COLINAS

INDUSTRIAL 24

GREAT SOUTHWEST – ARLINGTON

26

PINNACLE – LONESTAR – TURNPIKE

28

NORTHEAST DALLAS – GARLAND – MESQUITE

30

PLANO – RICHARDSON

32

DFW AIRPORT

34

NORTH STEMMONS – VALWOOD

36

SOUTHERN DALLAS COUNTY

38

SOUTH STEMMONS CORRIDOR


office summary Ove ral l I nve s t me n t Grade Inve n to ry SUBMARKET CENTRAL BUSINESS DISTRICT

INVENTORY

AVA I L A B L E SQUARE FEET

3Q 2013 AVA I L A B I L I T Y

26,961,813

7,555,925

28.0%

9,859,952

1,261,149

12.8%

RICHARDSON

15,477,001

1,782,157

11.5%

QUORUM/BENT TREE

23,455,510

4,164,618

17.8%

UPPER TOLLWAY/WEST PLANO

21,124,068

1,361,778

6.4%

CENTRAL EXPRESSWAY

10,294,378

2,296,350

22.3%

2,706,260

223,599

8.3%

27,663,261

5,038,451

18.2%

137,542,243

22,549,027

15.7%

UPTOWN/TURTLE CREEK

PRESTON CENTER LAS COLINAS

eight

15.7%

MAJOR DALLAS OFFICE SUBMARKETS

THIRD QUARTER AVA I L A B I L I T Y

137,542,243 OFFICE INVENTORY

22,549,027 AVA I L A B L E S Q U A R E F E E T

4


This map reflects the locations of the eight office submarkets within the greater Dallas metro area. Up-to-date market statistics, recent transactions, new development summaries, and current market trends can be found for each submarket on the following pages.

35E U P P ER TOLLWAY / WEST P LANO p a ge 1 4

1 21

LAS CO LI N AS

QU ORU M / B E NT TREE

p age 2 0

PRES IDENT GEORGE BUS H TOLLWAY

p a ge 1 2

PR ESTO N CEN TER

RI C H ARDS ON p a ge 10

p a ge 1 8

12 DAL L AS LOVEF I E L D

183

635 C ENTRAL EXP RES SWAY p a ge 1 6

U PTOW N / TU RTL E CR EEK

p a ge 0 8

30

C ENTRAL BU S I NES S DI STRI C T p a ge 0 6

360 12

175

20

35E 67

5

45


T HI RD QUA RTER 2 0 1 3 • C EN T R A L B U S I N E SS DI ST RI C T

28.0% AVA I LA BILITY

up REN TA L RATES

up CONST RUCTIO N

flat VAC A NCY ROSS TOW E R – 5 0 0 N A K A RD ST

Through the first half of the year, a number of large lease transactions materialized within the Dallas CBD and the momentum has carried into the third quarter. With construction on Hall Arts Tower/KPMG Plaza underway and major renovations of other Arts District-area buildings either completed or pending, office properties north of the DART rail line continue to ride the wave of optimism spawned by Klyde Warren Park. Landlords willing to invest in assets positioned on the north side of the CBD, in particular, are benefiting from a scarcity of large blocks of space in the neighboring Uptown submarket. Stream observed that nearly all CBD tenants will consider remaining in the CBD provided that a building can provide a) stable and proactive ownership, b) high quality improvements and services and c) an adequate parking ratio, preferably 3:1000 SF of space. For instance, two signature CBD buildings purchased out of foreclosure in the first half of the year (Comerica Bank Tower by M-M Properties and CBRE Capital Partners and Thanksgiving Tower by Woods Capital/Third Point Opportunity Master Fund) now have experienced wellcapitalized owners with plans to make investments necessary to attract and retain tenants. Furthermore, in 2012 institutional investors, INVESCO (Plaza of the Americas) and Cousins Properties (2100 Ross), entered the CBD market and there will likely be another with the sale of KPMG Centre at the end of 2013.

Statistics

IN V EN TORY

AVAIL AB L E SQUARE FE E T

3Q 2013 AVAIL AB IL ITY

Class A Tier 1 Class A Tier 2 Class B Total - Competitive Investor Owned Properties Plus - Owner User Properties Overall Investment Grade Inventory

7,551,365 6,873,665 11,848,573 26,273,603 688,210 26,961,813

1,455,085 2,618,500 3,398,747 7,472,332 83,593 7,555,925

19.3% 38.1% 28.7% 28.4% 12.1% 28.0%

6

“Office properties north of the DART rail line continue to ride the wave of optimism spawned by Klyde Warren Park.”

HISTO RICAL AVAIL AB IL ITY T REND S 2Q13

1Q13

4Q12

3Q12

19.8% 37.2% 28.6% 28.3% 12.2% 27.9%

19.8% 33.0% 30.2% 28.0% 0.0% 27.2%

19.4% 33.0% 30.2% 27.8% 0.0% 27.1%

19.4% 32.4% 28.6% 27.0% 0.0% 26.3%


T HI RD Q UART E R 2 0 1 3 • C E N T R AL B USI N ESS DI STR I CT Landlords know that even with all of these upgrades, parking remains a threshold challenge relative to Uptown buildings, which command rates nearly double that of “core” CBD buildings. Those that can make the leap by offering 3.0:1,000 SF or greater parking ratios will continue to receive the deepest interest from large tenants in the market. The same holds true with 2100 Ross and Lincoln Plaza/Ross Tower, both of which recently struck large leases with Lockton and IBM by guaranteeing a minimum of 3.0:1,000 SF parking by way of arrangements with surrounding garages.

Leasi ng Activ i ty

Investment Sales

TENANT

BUILDING

Netherland, Sewell & Associates

2100 Ross Ave

50,000

Turner Construction

2100 Ross Ave

30,000

Invitation Homes

BofA Plaza

28,208

IBM

Ross Tower

24,616

Which Wich Sandwiches

Adolphus Tower

14,000

Reid, Collins & Tsai LLP

Thanksgiving Tower

5,012

DartPoints

Bryan Tower

3,500

Prominent Dallas oncologist Dr. Vinay Jain purchased a 4.7 acre tract at Woodall Rodgers Freeway and Field Street from Gables Residential, which abandoned plans for a residential and mixeduse development on the site. Dr. Jain plans to build a South Asian Museum and Learning Center on the site, which is directly across the highway from the new Perot Museum.

Deals i n the Market

717 N Harwood St, a 827,000 SF, building is being marketed for sale by C-III Capital Partners and HFF.

Development •

S QUA RE FEET

Hall Financial broke ground on the 500,000 SF KPMG Plaza after striking leases with KPMG, Jackson Walker and UMB Bank for approximately 60% of the building. Rents for the balance of the available space are expected to exceed $40/SF plus electricity. Two other developments in the Arts District, Two Arts Plaza and The Spire, are on the hunt for anchor tenants to kick off preleasing.

TENANT

S QUARE F E E T

O CCUPA NCY

Santander

400,000

2015

Project Atlas

150,000

2015

Norton Rose Fulbright

140,000

2017

Gardere Wynne Sewell

130,000

2015

Locke Lord

120,000

2016

Strasburger & Price

80,000

2017

Hunton & Williams

60,000

2015

Petro-Hunt

60,000

2015

Sidley Austin

60,000

2014

Invesco

45,000

2014

Grant Thornton

40,000

2018

Hub International

35,000

2014

Estes Okon

25,000

2014

Fo r e c a s t B i g B lo ck Avai lab i li ties

The CBD is catching a tailwind given overall market large block scarcity and the new local amenity base. The next 2-3 years should be pivotal for the submarket as numerous large tenants within the area are coming to the market. With a substantial amount of new construction proposed in the Arts District and elsewhere in Uptown, Stream anticipates a modest influx of supply to the market in 2014 and 2015. Creative parking solutions will continue to drive the conversation among the most prominent repositioning opportunities within the CBD, including KPMG Centre, Comerica Bank Tower and Thanksgiving Tower.

7

BUILDING

ADDRESS

S QUA RE FEET

Elm Place

1401 Elm St

702,025

One Main Place

1201 Main St

508,591

KPMG Centre

717 N Harwood St

504,945

Thanksgiving Tower

1601 Elm St

284,572

Bank of America Plaza

901 Main St

269,556

Renaissance Tower

1201 Elm St

261,260

West End Market Place

603 Munger

237,254

The Belo Building

400 S Record St

223,824

1700 Pacific

1700 Pacific Ave

223,361

Comerica Bank Tower

1717 Main St

208,270

Pacific Place

1910 Pacific Ave

199,882

Ross Tower

500 N Akard St

172,046

Trammell Crow Center

2001 Ross Ave

161,421

Fountain Place

1445 Ross Ave

106,780

Plaza of the Americas

600 N Pearl St

68,098

2100 Ross Avenue

2100 Ross Ave

60,136

Bryan Tower

2001 Bryan St

54,904

Chase Tower

2200 Ross Ave

52,793

Stream Realty Partners


T HI RD QUA RTER 20 1 3 • U P TOWN - T URT L E C R E E K

10.7% AVA I LA BILITY

up REN TA L RATES

up CONST RUCTIO N

down VAC A NCY ON E M C K I N N E Y PL A Z A

The Uptown/Turtle Creek submarket is situated between Downtown and Dallas’ most prestigious neighborhood, Highland Park. Due to its proximity to the city’s center and affluent residences, Uptown/Turtle Creek commands some of the highest office rental rates in the Metroplex. Tenants and residents are drawn to this submarket because of its “live, work, play” amenities including: Stanley Korshak, The Ritz-Carlton Hotel and Tower Residences, West Village, American Airlines Center, McKinney Avenue retail, Turtle Creek residences, the Katy Trail, Klyde Warren Park, and the Perot Museum of Nature and Science. Additionally, the McKinney Avenue Trolley

Statistics Class A – Tier I Class A – Tier II Class B Total - Competitive Investor Owned Properties Plus - Owner User Properties Overall Investment Grade Inventory

extension is under construction and will connect from the CBD DART Rail through Uptown.

“ Uptown continues to remain fundamentally strong.”

IN V EN TORY

4,053,136 3,330,632 2,196,368 9,580,136 279,816 9,859,952

AVAIL AB L E SQUARE FE E T

3Q 2013 AVAIL AB IL ITY

219,361 393,856 398,870 1,012,087 0 1,012,087

5.4% 13.3% 18.2% 11.0% 0.0% 10.7%

8

Third quarter 2013 statistics show a continued occupancy decrease in overall investment grade properties. Overall, the vacancy rate decreased from 12.8% to 10.7%. During the last real estate cycle, developers put a shovel in the ground in 2005 when Uptown overall vacancy hit 13.2%. Several key offices sites are in development stages. Last quarter, Frost Bank finalized its 57,558 SF lease in the proposed Frost Tower to be developed by Harwood International. The Richards Group headquarters project is

HISTO RICAL AVAIL AB IL ITY T REND S 2Q13

1Q13

4Q12

3Q12

10.6% 17.2% 11.7% 13.2% 0.0% 12.8%

11.0% 17.8% 12.0% 13.6% 0.0% 13.2%

14.4% 19.2% 12.6% 15.7% 0.0% 15.2%

13.9% 23.8% 21.8% 19.1% 0.0% 18.6%


T HI R D Q UART E R 2 0 1 3 • UP TOW N - T U RTLE CR EEK underway. Their 250,000 SF build-to-suit is situated at the southwest corner of Haskell Avenue and Central Expressway. TRT Holdings just moved into their 150,000 SF build-to-suit in Crow Holdings’ Old Parkland development.

Leasi ng Activ i ty TENANT

Big block availability in Uptown continues to remain scarce. Notable leases that were executed this quarter include ISN Software at One McKinney Plaza for 70,000 SF. ISN Software evaluated numerous options ranging from new developments to purchase options and decided that a 37,000 SF expansion combined with an extension of their existing lease would best suit their requirement. Gables Residential is relocating from their multi-family project, Gables Villa Rosa, to 14,568 SF at 3811 Turtle Creek. Gables plans to convert their old office space to multi-family units.

BUILDING

ISN Software

One McKinney Plaza

70,000

Gables

3811 Turtle Creek

14,568

Compass Professional Health

The Centrum

12,212

Services Korn Ferry

Rosewood Court

7,095

US Oncology

The Centrum

5,205

Deals i n the Market TENANT

Uptown is fueled by strong demand from other parts of DFW for the “live, work, play” environment in addition to organic growth within the submarket. For these reasons, Uptown continues to remain fundamentally strong. The supply is limited and rates continue to increase across the board. In addition to Frost Tower, the buzz surrounding new developments continues as the Tier AA product continues to tighten and large block availability is scarce. In Uptown, Crescent and KDC are all actively hunting for a lead tenant to kick off new projects. In addition, just south of Woodall Rodgers Freeway, Billingsley and Spire are also targeting lead tenants for their projects.

S QUARE F E E T

O CCUPA NCY

Gardere Wynn Sewell

130,000

2016

Locke Lord

120,000

2015

Heritage Auctions

100,000

2017

Strasburger & Price

80,000

2015

Invesco

45,000

2014

Grant Thornton

40,000

2018

Godwin Ronquillo

35,000

2016

Estes Okon

25,000

2014

Development

250,000

Build To Suit

Uptown is going through a true land grab in multiple real estate sectors. In addition to office developers competing for the best sites, multi-family is on fire with developers buying up land and competing to put cranes in the air. The Centrum is benefitting from this phenomenon as Mattito’s will be relocating their 12,500 SF restaurant from Routh Street. This retail site is being converted into a five-story multi-family building called Routh Street Flats.

S QUA RE FEET

Richard’s Group

B i g B lo ck Avai lab i li ties

Harwood International has finalized the 57,558 SF lease with Frost Bank and will develop Frost Tower, a 167,251 SF, 22 story office building at the south corner of the McKinnon Street and Wolf Street intersection. Richard’s Group formally announced their $45 million, 250,000 SF build-to-suit. Designed by Perkins + Will and situated on the Cityplace land at the southwest corner of Haskell Avenue and Central Expressway, this building will be delivered first quarter 2015.

Fo r e c a s t With tightening market fundamentals, rental rates are on the rise and supply is limited. Stream expects this trend to continue until new, multi-tenanted product is delivered to the marketplace.

9

BUILDING

ADDRESS

1919 McKinney

1919 McKinney Ave

S QUA RE FEET

3500 Maple

3500 Maple Ave

The Centrum

3102 Oak Lawn Ave

60,057

Citymark

3100 McKinnon St

55,174

2727 N Harwood Street

2727 N Harwood Street

42,089

Akard Plaza

2414 N Akard St

38,150

One McKinney Plaza

3232 McKinney Avenue

34,105

Hampton Court

4311 Oak Lawn Ave

33,392

Harwood International

2828 N Harwood St

33,297

One Victory Park

2323 Victory Ave

28,992

Turtle Creek Centre

3811 Turtle Creek Blvd

26,834

Rosewood Court

2101 Cedar Springs Rd

22,651

The Crescent

200 Crescent Ct

22,459

2727 Oak Lawn

2727 Oak Lawn

22,440

119,310 94,087

Stream Realty Partners


T H I RD QUA RTER 2 0 1 3 • R IC H A R D S O N

11.5% AVA I LA BILITY

up REN TA L RATES

up CONST RUCTIO N

down VAC A NCY 2 6 0 0 N C E N T RA L E X PY

Armed with a strong first and second quarter, Richardson continued its torrid run during the third quarter. Vacancy has been nearly cut in half from the third quarter of 2012, going from 19.8% to 11.5% in overall investment grade properties. Class A product vacancy has led the charge dropping from 22.8% to 6.7% in the last year. Not all of these gains are permanent. As State Farm has leased approximately one million SF on a short-term basis. They signed a short-term 800,000 SF lease at Lakeside Campus this quarter as they build their headquarters at George Bush and US 75. The health of the Richardson Class A market in 2016 will certainly depend on how much space, if any, State Farm decides to convert

from short-term leases to long-term leases.

"Class A product vacancy has led the charge dropping from 24.8% to 6.7% in the last year."

Statistics

IN V EN TORY

AVAIL AB L E SQUARE FE E T

3Q 2013 AVAIL AB IL ITY

Class A Class B Total - Competitive Investor Owned Properties Plus - Owner User Properties Overall Investment Grade Inventory

4,883,777 7,349,766 12,233,543 3,243,458 15,477,001

325,252 1,449,424 1,774,676 7,481 1,782,157

6.7% 19.5% 14.4% 0.2% 11.5%

10

State Farm has undoubtedly been the driving force in the Richardson market over the last twelve months, but several other large deals landed in Richardson during the third quarter. Associa signed a new 90,000 SF lease at Fobare’s 1225 Alma Road redevelopment project that will be finished in first quarter of 2014. Associa will be consolidating their executive and back offices, relocating from the Central Expressway market, continuing the trend of high-density parking options (6 per 1,000 and greater) being absorbed at a rapid pace. Liberty Mutual officially signed a 55,000 SF lease at Greenway Plaza II, for

HISTO RICAL AVAIL AB IL ITY T REND S 2Q13

1Q12

4Q12

3Q12

7.1% 19.7% 14.7% 0.2% 11.7%

14.3% 21.9% 18.9% 0.2% 15.0%

15.1% 24.4% 20.3% 0.3% 16.9%

22.8% 25.1% 24.1% 0.3% 19.8%


T HI RD Q UART E R 2 0 1 3 • R I CH A R DSON five years, taking down 2.5 floors. The project is now 56.3% leased. Additionally, Edmentum signed a new 25,000 SF lease at Palisades I, taking the asset to 78% leased.

Leasi ng Activ i ty

Safety Kleen announced that they will be putting their 90,000 SF office on the market for sublease at Tower 2600. Safety Kleen was acquired in 2012, after signing a seven year lease in late 2011 and their space will be the best option in Richardson for tenants seeking Class A space.

TENANT

BUILDING

State Farm

Lakeside Campus

S QUA RE FEET

Associa

1225 Alma

90,000

Liberty Mutual

Greenway Plaza II

55,000

Edmentum

Palisades I

25,000

800,000

Class A product will continue to be the preferred option for tenants. Expect the majority of absorption gains to come from Class B product, as the quality of vacancies remaining in Class A diminishes.

Investment Sales •

Deals i n the Market

Lakeside Tower (2350 Lakeside) is marketed for sale by CB Richard Ellis. The asset is 97% leased, with Texas Capital Bank occupying all but one floor through 2023.

TENANT

Development Fobare will be finalizing their redevelopment of 1225 Alma, and expanding the parking to 8:1000.

S QUARE F E E T

O CCUPA NCY

ZTE

30,000

2014

HBS Systems

25,000

2014

ADVA

20,000

2014

Taqua

15,000

2014

HR Smart

13,000

2014

Fo r e c a s t Class A product continues to lead the market, and Class B buildings are experiencing a strong “trickle-down” effect as good options are leased up. Expect a slow-down in the absorption numbers through 2013 and early 2014. Growth will be moderate, but not as strong as the early returns in 2013. Big blocks with heavy parking will continue to dominate both the A & B sectors, as users become denser and denser.

B i g B lo ck Avai lab i li ties BUILDING

11

ADDRESS

S QUA RE FEET

2201 Lakeside Blvd

2201 Lakeside Blvd

812,503

The Tower Lakeside

2221 Lakeside Blvd

812,503

2280 N Greenville Ave

2280 N Greenville Ave

190,000

2323 N Central Expy

2323 N Central Expy

140,000

Campbell Commons

1201 E Campbell Rd

114,247

Tower 2600

2600 N Central Expy

90,962

3000-3030 Waterview Pky

3000-3030 Waterview Pky

84,425

17787 Waterview Pky

17787 Waterview Pky

57,302

Stream Realty Partners


T H I RD QUA RTER 2 0 1 3 • Q U O R U M - B E N T T R E E

17.8% AVA I LA BILITY

flat REN TA L RATES

up CONST RUCTIO N

down VAC A NCY Q U ORU M PL AC E

“ Although development activity is sluggish compared to the Upper Tollway, Quorum/Bent Tree will soon

have more cranes in the air." The Quorum/Bent Tree submarket is home to a number of large corporate tenants, such as Mary Kay, MBNA and Coca-Cola, as well as a myriad of smaller professional firms. The area is well known for its strong retail presence, including the Galleria Dallas and numerous restaurants and shops along Belt Line Road.

years. At Gramercy Center North, which is currently on the market, Tellabs reduced their Premises to 30,000 SF and renewed for three years. Finally, National Bankruptcy Services signed a new ten-year, 67,000 SF at the Aberdeen. Although development activity is sluggish compared to the Upper Tollway, Quorum/Bent Tree will soon have more cranes in the air. Beck Ventures continued to make progress on its redevelopment plans for the Valley View Mall area. Dubbed “Dallas Midtown” the 430 acre site will be repurposed into a mixed-use office, retail and multifamily destination. Plans for the project were completed by Omniplan and call for nearly $3 billion of capital to be invested over the next ten to fifteen years. After securing Sundown Energy, Cawley Partners also began work on Knoll Trail Plaza. The 120,000 SF development sits on the east side of the Tollway across from

Third quarter leasing activity in Quorum remained active. Ryan and Co. signed a direct renewal and expansion at the Galleria Tower III, increasing their total SFage to 130,000 SF. RMG Networks, a digital media solutions company, inked a new 32,000 SF lease at the Colonnade. Sundown Energy kicked off the first new office development in the submarket, Knoll Trail Plaza, with their 38,000 SF lease. As part of the deal, Sundown will also have equity in Knoll Trail Plaza, which is scheduled to deliver in November 2014. Systemware renewed their 45,000 SF at the Colonnade for five

Statistics

IN V EN TORY

AVAIL AB L E SQUARE FE E T

3Q 2013 AVAIL AB IL ITY

Class A – Tier I Class A – Tier II Class B Total – Competitive Investor Owned Proper Plus - Owner User Properties Overall Investment Grade Inventory

8,495,807 4,297,009 8,919,028 21,711,844 1,743,666 23,455,510

1,337,217 707,949 2,109,043 4,154,209 10,409 4,164,618

15.7% 16.5% 23.6% 19.1% 0.6% 17.8%

12

HISTO RICAL AVAIL AB IL ITY T REND S 2Q13

1Q13

4Q12

3Q12

17.2% 16.7% 25.7% 20.6% 0.0% 19.1%

17.2% 16.4% 24.6% 20.1% 0.0% 18.3%

17.2% 17.7% 25.6% 20.8% 0.0% 18.9%

17.2% 21.2% 30.6% 24.1% 0.2% 22.1%


T HI RD Q UART E R 2 0 1 3 • Q UO RUM - BENT TR EE Mary Kay and is currently 50% preleased.

Leasi ng Activ i ty

Quorum/Bent Tree’s high vacancy rates and healthy concessions continue across the submarket; however, numerous factors point to increased demand over the coming years. Construction to the south along I-635, which began in April 2011 and is expected to take five years to complete, has pushed tenants north. Tightening supply and increased rental rates in Legacy have also encouraged tenants to seek lower cost options in Quorum/Bent Tree and surrounding submarkets. Further redevelopment in the submarket will also entice new businesses into the area.

Investment Sales •

Briargrove Place – 128,092 SF – Crown Sterling Properties is marketing the 97.3% leased asset for sale. Gramercy Center North and South – 256,155 SF – JLL is marketing the asset for sale on behalf of Billingsley Co.

TENANT

BUILDING

Ryan & Co

Galleria Tower III

S QUA RE FEET

National Bankruptcy

The Aberdeen

67,250

SystemWare

Colonnade I

45,076

Sundown Energy

Knoll Trail Plaza

38,000

RMG Networks

The Colonnade I/II/III

32,000

Capital Senior Living

Parkway Office Center South

26,436

Placemark Investments

One Hanover Park

25,859

NDEX

Forum at Belt Line

18,705

Mary Crowley Medical Research

Centura Tower

16,934

Goldin, Peiser & Peiser

Parkway North

16,487

INS

Sojourn Office Center

14,039

Hyphen Solutions

Bent Tree Tower II

12,911

AXIOMetrics

Quorum Place

10,258

Dent Wizard

Kellway Business Center

130,000

8,250

Development •

Dallas Midtown – a 430 acre, $3 billion redevelopment of the Valley View mall area spearheaded by Beck Ventures.

Deals i n the Market

Knoll Trail Plaza – a 120,000 SF, four-story Class A office building being developed by Cawley Partners. TENANT

Fo r e c a s t Landlords in Quorum/Bent Tree will continue their rate war for new tenants over the next six months. Well-capitalized landlords focused on occupancy will continue to win the lion’s share of new deals in this submarket. Construction on I-635 and economic incentives from Plano and Frisco will continue to attract tenants from Quorum and surrounding submarkets. Examples include Yum! Brands and EnCana, who have chosen to leave Quorum enticed by new product farther north. Tough economic times will continue to produce short sales and foreclosures, primarily with older, functionally obsolete buildings. Construction noise and delays along I-635 will continue to push LBJ tenants to surrounding submarkets, including Quorum/ Bent Tree. As the economy picks up momentum and rates north of 190 continue to increase, Quorum/Bent Tree will be poised for improvement.

S QUARE F E E T

O CCUPA NCY

FedEx Office

225,000

Concentra

125,000

2014

National Default Exchange

100,000

Various

2015

1st Data

70,000

-

Clear Channel

50,000

2014

Invesco

45,000

2015

Columbus Data Services

25,000

2015

GHA Architects

30,000

2015

LenderLive

25,000

-

B i g B lo ck Avai lab i li ties

13

BUILDING

ADDRESS

The Aberdeen

14841 N Dallas Pky

S QUA RE FEET 184,503

16675 Addison Rd

16675 Addison Rd

137,992

Stanford Corporate Centre

14001 N Dallas Pky

129,564

Galleria North Tower II

13727 Noel Rd

93,875

Alpha Tower

5757 Alpha Rd

66,112

Greenhill Park

14131 Midway Rd

61,682

The Princeton

14651 N Dallas Pky

52,688

Trinity Centre-West

2312 E Trinity Mills Rd

50,082

Stream Realty Partners


T HIRD QUA RTER 20 1 3 • U P P ER TO LLWAY / W E ST P L AN O

6.4% AVA I LA BILITY

up REN TA L RATES

up CONST RUCTIO N

down VAC A NCY L EG ACY C OM M ON S - 5 5 5 6 - 5 5 6 0 T E N N YSON PA RK WAY

The Upper Tollway/West Plano submarket has witnessed a significant supply and demand imbalance, pushing rates to new all-time highs. Year to date average rental rates have increased 2.83%. Leading the way, KBS made a strategic decision at Legacy Town Center to restructure all renewals and new leases to a Triple Net structure as opposed to a Plus E structure. New construction has followed suit as some spec developments are now quoting north of $25.00 NNN. While many tenants are willing to pay the freight, some are choosing to relocate to lesser quality assets with lower rental rates in surrounding submarkets. Total Competitive Investor Owned properties have witnessed a 2.3% decrease in vacancy year to date, bringing the current vacancy to 10.1%. That equates to 1,336,803 SF available for lease in a market with total inventory around 13,237,068. Currently 1,774,066 SF of office space is under construction across the market which will increase the total inventory 13.4% by 2015. Of the new construction underway, less than half is still available as 53.7% is either preleased or earmarked for build to suit developments.

Statistics Class A – Tier I Class A – Tier II Class B Total – Competitive Investor Owned Properties Total – Owner User Properties Overall Investment Grade Inventory

IN V EN TORY

AVAIL AB L E SQUARE FE E T

2,256,033 6,648,753 4,332,282 13,237,068 7,887,000 21,124,068

89,976 495,178 751,649 1,336,803 24,975 1,361,778

14

3Q 2013 AVAIL AB IL ITY

4.0% 7.4% 17.3% 10.1% 0.3% 6.4%

“Ex isti ng sup p ly for large avai lab le bloc ks o f space is sca rce wi thi n the sub market. The re are a to tal of five leasab le o p ti o ns greater than 5 0 ,0 0 0 SF.”

HISTO RICAL AVAIL AB IL ITY T REND S 2Q13

1Q13

4Q12

3Q12

3.7% 10.0% 14.6% 10.4% 0.2% 6.6%

4.4% 10.5% 16.4% 11.4% 0.5% 7.3%

5.3% 12.6% 15.8% 12.4% 0.0% 8.1%

3.7% 9.7% 13.9% 10.0% 0.00% 6.6%


T H I RD Q UART E R 2 0 1 3 • UP P E R TO L LWAY / WEST P LA NO Existing supply for large available blocks of space is scarce within the submarket. There are a total of five existing options greater than 50,000 SF and only two greater than 150,000 SF. With so few big blocks remaining and new development at least 12 months out, existing building owners are capitalizing on market conditions. Equity Office Properties, for instance, recently structured a buyout with MedAssets after they vacated 5556/5560 Tennyson in order to regain control of one of the largest blocks in Legacy.

Leasi ng Activ i ty

Development •

Capital One – 5040/5050 Headquarters Drive – 500,000 SF

Legacy Tower – 7250 Dallas Parkway – 342,066 SF

Granite Park IV – 5850 Granite Parkway – 300,000 SF

Hall Office Park – 3001 Dallas Parkway – 200,000 SF

Conifer Health Solutions – Duke Bridges IV – 200,000 SF

International Business Park – 6111 West Plano Parkway – 150,000 SF (ReachLocal occupying 100,000 SF)

TENANT

BUILDING

Brierley

The Plaza at Legacy

S QUA RE FEET 31,742

Tellabs

Gramercy Center North

30,117

Performance Pipe

Park Ventura Phase I

25,438

Smile Brands of Texas

Tollway North Office Park

20,298

Ameriprise

Lincoln Legacy One

14,782

RealPage

International Business Park

13,957

Texakoma

Granite Park III

12,959

NAI Robert Lynn

The Plaza at Legacy

12,529

Deals i n the Market

Tyler Technologies – 5101 Tennyson Parkway – 82,000 SF

Fo r e c a s t Tenant demand continues to grow in anticipation of the speculative construction underway. Since new construction is 9-12 months out, tenants are considering alternative submarkets, like Richardson and Las Colinas, due to the limited existing supply within the submarket. The Upper Tollway/West Plano submarket has more speculative office development underway than any other submarket across the metroplex. This trend should continue during this development cycle. As more Fortune 500 companies consider submarkets like the Upper Tollway/West Plano, expect more and less notable developers to begin pushing dirt in the next 24 months.

TENANT

S QUARE F E E T

CoreLogic

500,000

O CCUPA NCY 2017

RealPage

450,000

2016

Santander

400,000

2015

EXCO Resources

300,000

2015

FedEx Office

225,000

2015

Barclays

125,000

-

Aegis

120,000

-

National Default Exchange

100,000

Various

Pepsi

100,000

2014

B i g B lo ck Avai lab i li ties BUILDING

ADDRESS

Legacy Commons

5556-5560 Tennyson Pky

S QUA RE FEET 162,704

Tollway Office Center II

3905 N Dallas Pky

160,000

International Business Park

6500 International Pky

121,111

The Campus at Legacy

5360 Legacy Dr

122,248

International Business Park

4100 International Pky

88,581

Lincoln R&D in Legacy V

6400 Pinecrest Dr

76,000

The Campus at Legacy

5340 Legacy Dr

66,651

Office Tech Center G-1

2401 Internet Blvd

58,332

Gamercy Center North

18583 N Dallas Pky

54,799

Legacy Town Center

7800 N Dallas Pky

52,600

Lincoln Legacy One

6860 N Dallas Pky

*53,996

Granite Park Three

5601 Granite Pky

*51,688

Headquarters I

*Sublease

15

Stream Realty Partners


TFH I RST I RD QUA QUARTE RTERR22001 1 3 3• C EN T R A L EX P RE SSWAY

22.3 21.8% AVA I LA BILITY

ful apt REN TA L RATES

d ou w pn CONST RUCTIO N

ful apt VAC A NCY N O RTHPA RK C E N T RA L - 8 7 5 0 N C E N T RA L E X PRE SSWAY

"Central Expressway offers something for virtually any tenant’s budget, as evidenced by an inventory evenly distributed among Class AA, Class A, and Class B product and quoted rates typically ranging from the mid-teens to mid-twenties plus electric." tenants whose employee base resides in Richardson, Plano, and North Dallas.

The Central Expressway submarket is comprised of 10.3 million SF of office space stretching along U.S. Highway 75 from Haskell Avenue to Forest Lane. The submarket typically attracts tenants that prefer proximity to inner suburbs such as Highland Park, University Park, Preston Hollow, Lakewood and Lake Highlands and desire the access, visibility and exposure Central Expressway provides. Central Expressway is home to prominent users like Dean Foods, The Richards Group, ACS, and also contains one of DFW’s largest collections of medical office buildings from Park Lane to Forest Lane along the submarket’s northern quadrant. Rail access continues to be a key demand driver for the Central Expressway submarket as buildings with proximity to DART stations attract

Despite the increases in vacancy, the third quarter did witness significant activity in the submarket with several large tenants electing to renew or relocate within the submarket. The most noteworthy transaction involved The Richards Group’s official announcement that they will relocate from approximately 150,000 SF in Northpark Central to a 250,000 SF build-to-suit in the West Village in early 2015. Stan Richards and his foundation will own the new building. In other news involving Northpark Central, Fletcher, Farley, Shipman, & Salinas opted to relocate their office to a full floor (25,642 SF) across Central Expressway at The Pyramids at Park

Statistics

IN INVVEN ENTORY TORY

AVAIL AVAILAB ABLLEE SQUARE SQUARE FE FEEETT

1Q 3Q 2013 2013 AVAIL AVAILAB ABIL ILITY ITY

Class A – Tier I Class A – Tier II Class B Total – Competitive Investor Owned Properties Total – Owner User Properties Overall Investment Grade Inventory

3,362,297 3,549,844 3,382,237 10,294,378 0 10,294,378

675,822 881,903 738,625 2,296,350 0 2,296,350

20.1% 24.8% 21.8% 22.3% 0.0% 22.3%

16

HISTO HISTORICAL RICAL AVAIL AVAILAB ABIL ILITY ITY TTREND RENDSS 4Q12 3Q12 2Q12 1Q12 4Q12 3Q12 1Q13 2Q13

19.2% 23.6% 22.0% 21.6% 0.0% 21.6%

13.6% 24.3% 23.1% 20.4% 0.0% 20.4%

13.2% 21.9% 22.1% 19.1% 0.0% 19.1%

14.4% 22.0% 15.5% 17.3% 0.0% 17.3%


T HI R D Q UART E R 2 0 1 3 •SCuE b N Tm R AL a r EXP k e tR ESSWAY Name Lane and Fiserv decided to renew their lease for the top two floors at Northpark Central.

Leasi ng Activ i ty

Two buildings will now bear the CBS name on Central Expressway. Fitzhugh Tower will be renamed CBS Radio Tower as part of CBS Radio’s long-term 50,000 SF renewal that was executed in the third quarter. Coit Central Tower will also get a new moniker, CBS Tower, as part of the 19,000 SF lease that was recently signed there. CBS 11 and TXA 21 will move their Dallas newsrooms and offices from a facility that the broadcast company owned near Walnut Hill and Central Expressway to CBS Tower. Davaco, which had been in the market for more than a year, has decided to extend their lease by five years at Energy Square for 38,576 SF. The most significant new deal to the submarket was the 30,043 SF lease BB&T signed at The Tower at Cityplace, which will consolidate the bank’s operations throughout DFW and also account for some expansion. There are still two large lease transactions that have the attention of the Central Expressway submarket. Encompass Home Healthcare, located in Energy Square III, is still in the market for 70,000 SF and is likely to make a decision on their location by year-end. EXCO Resources, located in Lakeside Square, is evaluating build-to-suits and existing buildings for up to 300,000 SF and they are considering North Dallas and Richardson options along with Central Expressway. The Tower at Cityplace also hit the investment sales market and drew broad attention from both coasts with the sales price expected to exceed $150 million for the 70% leased asset. One Lincoln Park will also hit the investment sales market early in the fourth quarter and will attract significant attention as one of the newest buildings in the submarket with a traditionally low vacancy rate.

TENANT

BUILDING

S QUA RE FEET

The Richards Group

Richards Tower

CBS Radio

CBS Radio Tower

50,000

Fiserv Solutions

NorthPark Central

48,000

Davaco

Three Energy Square

38,576

BB&T

Tower at City Place

30,043

Fletcher, Farley, Shipman

The Pyramids

25,642

CBS Local TV Offices

CBS Tower

19,000

Northpark Management

8080 NCX

17,000

North Dallas Dermatology

Walnut Glen Tower

16,000

Schmidt & Stacy

Tower at City Place

12,300

Gilbert Mediation

CBS Tower

10,700

Fanning Harper

Two Energy Square

10,500

Shelton Communication

Churchill Tower

9,300

Neurology Consultants of Dallas

7515 Greenville

8,800

250,000

Deals i n the Market TENANT

Development

S QUARE F E E T

O CCUPA NCY

EXCO Resources

300,000

2015

Undisclosed Corp.

100,000

2014

70,000

2014

Relocation

Offices at Park Lane, owned by Northwood Investors, have two projects planned: •

8000 Park Lane – 190,000 SF (120,000 SF of office) – Construction beginning in fourth quarter of 2013.

8130 Park Lane – 100,000 SF (Renovating the building for office use) – Construction beginning in fourth quarter of 2013.

Encompass Home Health

B i g B lo ck Avai lab i li ties

Construction is also underway on the Preston Hollow Village, a 40-acre mixed-use development at the northwest corner of Walnut Hill and Central Expressway. A Trader Joe’s store will be completed in August 2014 along with a freestanding building that will feature a Frost Bank branch on the ground floor and 46,000 SF of speculative office space above.

Fo r e c a s t Most Central Expressway landlords will continue to focus on occupancy as their buildings offer discounted lease rates relative to the surrounding options in Preston Center and Uptown/Turtle Creek. Tier 1 buildings within the submarket (namely, The Tower at Cityplace and Northpark Central) will have an opportunity to exploit the scarcity of quality large block availabilities in the infill Dallas submarkets by pushing lease rates that compare favorably to new construction. However, an overhang of low cost large block availabilities in the so-called “Core CBD” will pose a competitive threat on some of those large tenant pursuits. 17

BUILDING

ADDRESS

S QUA RE FEET

The Tower at Cityplace

2711 N Haskell Ave

207,332

Northpark Central

8750 N Central Expy

145,414

Three Energy Square

6688 N Central Expy

145,009

8130 Park Lane

8130 Park Ln

86,615

Rambler Park

7557 Rambler Rd

67,840

Two Energy Square

4849 Greenville Ave

62,845

Campbell Centre II

8150 N Central Expy

58,856

9400 NCX

9400 N Central Expy

52,263

North Tower

9201 N Central Expy

51,400

5750 Pineland Dr

5750 Pineland Dr

51,000

Stream Realty Partners


T HIRD QUA RTER 20 1 3 • PR ESTO N C ENT E R

8.3% AVA I LA BILITY

up REN TA L RATES

up CONST RUCTIO N

up VAC A NCY S H E RRY L A N E PL AC E - 5 6 5 6 SH E RRY L A N E

The Preston Center submarket is positioned between two of the highest-income neighborhoods in Dallas: the Park Cities and Preston Hollow. With proximity to highly affluent neighborhoods and limited available development sites, the Preston Center submarket has historically maintained the lowest vacancy rate and highest rental rates in the Dallas market. The typical tenant in Preston Center is a privately-held, local or regional company that leases less than 10,000 SF. Banks and medical providers also have a substantial presence throughout the submarket. Third quarter leasing activity in Preston Center was marked by negative net absorption of 12,270 SF and a slight increase in the vacancy rate to 8.3% on the heels of a substantial decrease to 7.4% the prior quarter. Two of the submarket’s premier assets, Sherry Lane Place and The Berkshire, shouldered all of the modest negative absorption. Despite this isolated setback, landlords throughout the market are aggressively pushing rental rates into new territory for Dallas’ most supply-constrained submarket. For instance, after acquiring Preston Commons and Sterling Plaza in the second quarter, KBS immediately elevated quoted rental rates for those buildings from the high $20/SF (gross) plus electricity range to $24-27/SF NNN. Meanwhile, The Lionstone Group increased rental rates by $2-4/SF on all

Statistics Class A – Tier I Class A – Tier II Class B Total - Competitive Investor Owned Properties Plus - Owner User Properties Overall Investment Grade Inventory

IN V EN TORY

1,124,945 1,078,757 502,558 2,706,260 0 2,706,260

AVAIL AB L E SQUARE FE E T

98,856 102,635 22,108 223,599 0 223,599

18

3Q 2013 AVAIL AB IL ITY

8.8% 9.5% 4.4% 8.3% 0.0% 8.3%

“The typ i cal te nant i n P re sto n Ce n ter is a p rivate ly - he ld , local or re gi o nal co mpany that lease s le ss than 10 ,0 0 0 S F”

HISTO RICAL AVAIL AB IL ITY T REND S 2Q13

7.0% 9.4% 4.4% 7.4% 0.0% 7.4%

1Q13

4Q12

3Q12

9.6% 13.0% 6.7% 10.4% 0.0% 10.4%

8.9% 12.3% 6.5% 9.8% 0.0% 9.8%

8.1% 14.1% 7.3% 10.4% 0.0% 10.4%


T HI R D Q UART E R 2 0 1 3 • P R E STON CENTER three of its recent acquisitions in the submarket: 8333 Douglas, 8343 Douglas, and 8300 Douglas.

Leasi ng Activ i ty

Investment Sales •

CBRE is marketing for sale 8235 Douglas and 5944 Luther, which are owned by affiliates of RM Crowe. The portfolio offering also includes a development site at Luther and the Tollway that can accommodate a 209,650 SF office building. Pricing for the portfolio is rumored to exceed $240/SF including allocated value for the land. Interest in the portfolio was robust and included several investment groups that bid aggressively on the recent Preston Commons, Sterling Place and 8333/8343 Douglas offerings. The rumored winning bidder already owns another asset in the submarket, and thus would join KBS and The Lionstone Group as Preston Center’s dominant landlords.

TENANT

BUILDING

Chief Oil & Gas

8117 Westchester

S QUA RE FEET 45,000

Frank Branson

Highland Park Place

26,084

Cufflinks.com

Highland Park Place

5,696

Katy Resources

4809 Cole

5,201

The Move Project

4809 Cole

4,601

Deals i n the Market

Development •

Construction is underway on Bandera Ventures’ eight-story, 200,000 SF office building at the corner of Douglas Avenue and Weldon Howell Parkway. The site was previously owned by Hines, which planned to build residential condos before the Great Recession. Bandera is partnering with Chief Partners, the real estate affiliate of Trevor Rees-Jones’ Chief Oil & Gas. Chief will be the project’s lead tenant and vacate nearly two full floors at Sherry Lane Place when the building is delivered in late 2014.

TENANT

S QUARE F E E T

Unity Hunt

17,500

O CCUPA NCY 2014

B i g B lo ck Avai lab i li ties

Fo r e c a s t The limited supply of available office space in Preston Center along with the prime location will continue to contribute to increasing rental rates in the submarket for the foreseeable future. Additionally, look for owners to begin the shift towards a triple net lease structure as opposed to a gross plus electric. Finally, with KBS and The Lionstone Group representing roughly a third of the ownership in the submarket, their moves, along with those of Bandera/Chief at their new development, will dominate the trends for the submarket as it relates to rental rates, occupancy, and absorption.

19

BUILDING

ADDRESS

S QUA RE FEET

The Berkshire @ Preston Center

5950 Berkshire Ln

25,872

Bluffview Towers - East

3890 W Northwest Hwy

17,538

Sherry Lane Place

5956 Sherry Ln

17,428

Preston Commons - East Tower

8115 Preston Rd

14,644

4301 Westside Dr

4301 Westside Dr

13,000

Bluffview Towers- West

3860 W Northwest Hwy

10,797

Stream Realty Partners


T H I RD QUA RTER 2 0 1 3 • LAS C O LIN AS

18.2% AVA I LA BILITY

-

up REN TA L RATES

up CONST RUCTIO N

down VAC A NCY C ON N E C T I ON PA RK

“With activity up, supply down and improving market conditions, investors are lining up and paying top dollar to own in Las Colinas.” Pens, and now shovels, have been busy for the past several months in the Las Colinas submarket. With the continued signing of leases, from small spec suites to large corporate relocations, the vacancy rate is steadily decreasing. Vacancy dropped 1.2% to 18.2% over the last quarter and rental rates continue the upward trend.

25,000 SF at Browning Place, Christus Health expanding by 20,000 SF at One MacArthur Ridge and Martin Fletcher relocating to 19,500 SF at Canal Centre. Deals in the market are primarily coming from other submarkets, but a few tenants, including Epsilon, Nokia and Martin Fletcher, relocated within Las Colinas.

Office Center saw the lion’s share of new deals including Epsilon relocating to 250,000 SF at The Commons of Las Colinas, Green Tree Financial leasing 120,000 at 1555 Walnut Hill and Humana expanding into an additional 112,000 SF at Carpenter Corporate Center. Las Colinas Corporate Center signed two new deals with Neovia Logistics for 45,000 SF and Nokia for 27,000 SF. Other significant deals included Monitronics’ short-term, 52,000 SF lease at Royal Tech 14, Immigration & Customs Enforcement taking

With activity up, supply down and improving market conditions, investors are lining up and paying top dollar to own in Las Colinas. Investment sales are healthy in all classes and submarkets. In the last few months eight properties have traded hands including multitenant assets like Urban Towers, The Point, MacArthur Plaza and 100 E. Royal as well as single-tenant assets such as Regent Commons and Carpenter Corporate Center.

Statistics

IN V EN TORY

AVAIL AB L E SQUARE FE E T

3Q 2013 AVAIL AB IL ITY

Class A – Tier I Class A – Tier II Class B Total - Competitive Investor Owned Properties Plus - Owner User Properties Overall Investment Grade Inventory

1,344,022 8,989,825 11,142,406 21,476,253 6,187,008 27,663,261

81,265 1,188,951 3,708,391 4,978,607 59,844 5,038,451

6.0% 13.2% 33.3% 23.2% 1.0% 18.2%

20

HISTO RICAL AVAIL AB IL ITY T REND S 2Q13

1Q13

4Q12

3Q12

6.3% 20.9% 30.4% 24.9% 0.3% 19.4%

4.9% 20.8% 31.7% 25.5% 0.3% 19.8%

8.5% 20.7% 32.5% 26.2% 2.0% 21.0%

9.5% 20.5% 33.8% 26.9% 2.0% 21.5%


T HI R D Q UART E R 2 0 1 3 • LAS COLI NAS

Investment Sales •

Carpenter Corporate Center, a 226,822 SF, 100% leased project has been purchased by Chambers Street. Regent Commons, a 629,544 SF, 100% leased project has been purchased by GI Partners. MacArthur Plaza, a 185,545 SF, 94% leased building has been purchased by Mark Jordan.

100 E Royal, a 146,500 SF, 96% leased building has been purchased by Westdale Real Estate Investment and Management.

420 Decker, a 43,559 SF, 0% leased building has been purchased by Quality First Commercial.

TENANT

The Point (300 E. John Carpenter) a 402,127 SF, 99% leased building has been purchased by Fortis Property.

Leasi ng Activ i ty

Urban Towers (222 W. Las Colinas Boulevard) an 844,113 SF, 96% leased building has been purchased by a Parallel Partners through a joint venture with Angelo Gordon.

1431 Greenway Drive, a 196,688 SF, 87% leased project is being marketed for sale by Jones Lang LaSalle.

Cypress Waters – Billingsley Co. is under construction on a spec 185,000 SF office building at Cypress Waters with a June 2014 delivery.

Connection Park – Stream Realty and Chief Partners announced they will break ground on Phase 1 and 2 of a spec 300,000 SF office project with a Q4 2014 delivery.

1555 Walnut Hill

120,000

Humana

2001 W John Carpenter Fwy

112,000

Monitronics

7880 Bent Branch Rd

52,000

Neovia Logistics

6363 N State Hwy 161

45,000

Nokia

6363 N State Hwy 161

27,000

Immigration & Customs

1605 LBJ Fwy

25,000

Christus Health

919 Hidden Ridge

20,000

Martin Fletcher

400 Las Colinas Blvd

19,500

TENANT

One MacArthur Ridge, a 247,721 SF, 100% leased project owned by Columbia Property Trust is under contract. This property is part of a portfolio sale.

Freeport 9 – Myers & Crow is under construction on their 150,000 SF, four-story building at the northwest corner of Freeport Parkway and Regent Boulevard with a Q1 2014 delivery.

250,000

GreenTree Financial

Deals i n the Market

Riverside Commons, a 460,115 SF, 90% leased project owned by Research in Motion is under contract.

S QUA RE FEET

6021 Connection Dr

Enforcement

Development •

BUILDING

Epsilon

S QUARE F E E T

O CCUPA NCY 2014

Real Page

400,000

Nationstar

300,000

-

Monitronics

250,000

2015

FedEx Office

225,000

2015

Protection One

100,000

-

Santander

100,000

-

CEC Entertainment

80,000

2015

JDA

70,000

2014

Agero Texas

60,000

-

Wells Fargo

60,000

-

Quest Diagnostics

55,000

-

CarFinance

50,000

-

Delta Companies

50,000

-

Cheddar's

40,000

-

Kroger

40,000

-

VMware

40,000

-

B i g B lo ck Avai lab i lities

Fo r e c a s t As demand catches up to and even surpasses supply, the Las Colinas market will continue to stabilize, erring in favor of Landlords. Landlords who recently purchased assets in Las Colinas, mainly Urban Center and Office Center, are immediately pushing rates and reducing concessions. The market is following their lead. Freeport landlords and developers are all chasing a handful of big deals hoping their building’s efficiency and density will bring the tenant. Rates in Freeport will remain competitive as a number of sublease, direct and new spaces are all aiming to offer the best deal.

21

BUILDING

ADDRESS

6555 N State Hwy 161

6555 N State Hwy 161

S QUA RE FEET 267,813

500 E John Carpenter Fwy

500 E John Carpenter Fwy

193,282

Browning Place I

1601 LBJ Fwy

182,739

220 E Las Colinas Blvd

220 E Las Colinas Blvd

178,664

5601 Executive Dr

5601 Executive Dr

152,121

Epsilon

4301 - 4401 Regent Blvd

150,232

125 E John Carpenter Fwy

125 E John Carpenter Fwy

150,139

8505 Freeport Pky

8505 Freeport Pky

126,000

Tower 1320

1320 Greenway Dr

124,997

290 E John Carpenter

290 E John Carpenter

124,331

Westway One

1707 Market Place Blvd

109,835

Royal Tech 14

8333 Ridgepoint Dr

102,200

1660 Westridge

1660 N Westridge Cir

101,120

Stream Realty Partners


industrial summary Ove ral l I nve s t me n t Grade Inve n to ry SUBMARKET

INVENTORY

AVA I L A B L E SQUARE FEET

3Q 2013 AVA I L A B I L I T Y

GREAT SOUTHWEST / ARLINGTON

82,541,551

6,820,672

8.3%

PINNACLE / TURNPIKE / LONESTAR

22,705,948

4,238,098

9.9%

NORTHERN DALLAS / GARLAND / MESQUITE

46,140,492

6,567,186

14.2%

RICHARDSON / PLANO

33,042,497

4,775,873

14.5%

DFW AIRPORT

65,714,403

4,768,827

7.3%

NORTH STEMMONS / VALWOOD

43,479,908

3,944,488

9.1%

SOUTHERN DALLAS COUNTY

44,652,851

5,119,661

11.5%

338,277,650

36,234,805

10.7%

eight

10.7%

MAJOR DALLAS INDUSTRIAL SUBMARKETS

SECOND QUARTER AVA I L A B I L I T Y

338,277,650 INDUSTRIAL INVENTORY

36,234,805 AVA I L A B L E S Q U A R E F E E T

22


This map reflects the locations of the eight industrial submarkets within the greater Dallas metro area. Up-to-date market statistics, recent transactions, new development summaries, and current market trends can be found for each submarket on the following pages.

121 75

N O RT H ST EMMONS / VA LWOOD

35 E

RI CHA RDSON / PLA NO

pa ge 3 4

p a ge 3 0

DFW AIR P ORT

121

page 32

PRE SI DE NT G E O RG E B U SH TO LLWAY

635 30

S OUT H ST EMMONS CORRI DOR

114

p a ge 3 8

183

NORT HERN DALLAS / GA RLA ND / MESQU ITE p a ge 28

80

30 P IN N AC L E / T U R N P IK E / LO N E STA R

360

12

20

page 2 6

35

175

20

G RE AT SO UT H W E ST / A RL I N G TO N p age 24

45

67

SOUT HERN DA LLAS COUNT Y

380

p a ge 3 6

35E 75

23


T HRI D QUA RTER 2 0 1 3 • GR EAT S O U T H W E ST - ARL I N G TO N

8.3% AVA I LA BILITY

up REN TA L RATES

up CONST RUCTIO N

down VAC A NCY 1201 AV EN U E S ( C ROW H OL D I N GS W I L L B E RE N OVAT I N G SOON )

For the 13th consecutive quarter, the Great Southwest submarket continued its downward trend in vacancy in overall investment grade product, with the 3rd Quarter of 2013 decreasing by 105 basis points. Despite the summer-time slow down and the start of the school year, positive absorption has been robust, slowing down briefly in August, only to bounce back in September with an uptick in showings and closed transactions. The extra large category recognized the largest gain in absorption during the 3rd Quarter with a vacancy decrease of 158 basis points. Some of the larger transactions included, Louisville Ladder, Stelfast, Imperial Supplies, and Petmate. However, one of the highlighted transactions of the quarter was Crow Holdings’ purchase of 1201 Avenue S in Grand Prairie, a 117,070 SF building owned by the United States Postal Service. The asset gives the submarket a 100,000 + SF option in a limited market. As supply and demand continues to tighten across all product types, tenants are beginning to get out into the market sooner with expansion needs, often times running into increased rental rates as Landlord’s begin to significantly push rates in many cases. This has been most evident in the large and extra large categories, and has led to new development that is expected to deliver in mid to late 2014.

Statistics Flex [0 – 20,000 SF] Distribution - Small [20 – 50,000 SF] Distribution - Medium [50 – 100,000 SF] Distribution - Large [<100,000 SF] Distribution - Extra Large Total – Competitive Investor Owned Properties Total – Owner User Properties Overall Investment Grade Inventory

IN V EN TORY

8,110,386 3,095,003 8,537,457 10,755,096 37,202,257 67,700,199 14,841,353 82,541,552

AVAIL AB L E SQUARE FE E T

1,260,971 282,846 853,202 1,004,379 3,116,512 6,517,910 302,762 6,820,672

24

3Q 2013 AVAIL AB IL ITY

15.6% 9.1% 9.9% 9.2% 8.4% 9.6% 2.1% 8.3%

“For the 13th consecutive quarter, the Great Southwest submarket continued its downward trend in vacancy in overall investment grade product, with the 3rd Quarter of 2013 decreasing by 105 basis points.”

HISTO RICAL AVAIL AB IL ITY T REND S 2Q13

16.9% 8.7% 8.8% 10.2% 9.9% 10.6% 3.4% 9.3%

1Q13

18.3% 9.7% 11.0% 7.2% 15.3% 13.6% 5.9% 12.2%

4Q12

18.1% 13.6% 13.4% 8.8% 16.8% 15.1% 6.3% 13.5%

3Q12

17.1% 11.1% 13.2% 11.5% 17.8% 15.9% 4.8% 13.9%


T H IR D QUART E R 2 0 1 3 • G RE AT SO UT HW E ST - A R LI NG TON

Development •

Leasi ng Activ i ty

Crow Holdings’ 425,000 SF pad site on Post & Paddock is under construction and is expected to be completed in 6-7 months, delivering 100,000 + SF spaces that are in high demand. Exeter’s 821,502 SF spec distribution facility located just south of Interstate 20 has commenced construction and is expected to be completed in 7-8 months. Oakmont Industrial Group has proposed construction of a 520,036 SF cross dock facility on their site which is approximately 28 acres off Roy Orr Boulevard. The building will most likely be a single tenant use. The land was purchased from the City of Fort Worth. Champion Partners sold its land site on Marshall to Weeks Robinson. The site is 92 acres and rail served. Weeks Robinson has begun construction on a 665,500 SF facility that will be the first of two buildings. The building will most likely be split for two tenants.

TENANT

LANDLORD

Amerimax

Kennedy Associates

S QUA RE FEET 89,578

Schilli Distributions Service

Oakridge

72,450

Louisville Ladder

First Industrial

65,500

Stelfast, Inc.

Prologis

59,400

Imperial Supplies

Morgan Stanley

55,000

Petmate

KTR

51,818

Professional Packaging

Cabot

39,600

Sigma-Tex

Duke

32,892

Harrah Industries

Prologis

24,128

Tyco

Capital Commercial

21,360

Social Smoke

First Industrial

20,000

Champs Restaurant Supply

First Industrial

12,600

Exact Seat Covers

Walter Floyd

10,000

Majo r Te nan ts

Fu t u r e D e m a n d It is no secret that the Great Southwest submarket is one of the premier industrial submarkets in the metroplex, and supply and demand tells the story. As the market transitions from the 3rd to 4th Quarter of 2013, demand should only increase, especially in the large and extra large categories. There are a few extra-large tenants planning to relocate due to expansion needs at the end of the year which should affect overall vacancy rate and supply; however, demand for the submarket’s average tenant base of 35,000 – 75,000 SF remains and will continue to increase.

Bell Helicopter

Android Industries

APDI

Coaster Company

Rooms to Go

U.S. Cold Storage

General Motors

Jan-Pak

Northern Tool

American Airlines

Mercedes-Benz

Southwire

Solo Cup

Vought Aircraft

Cott Beverage

Office Depot

Coca Cola

UTi

MAK

Majo r O wne rs

Fo r e c a s t As the 4th Quarter of 2013 begins and 2014 quickly approaches, we expect the Great Southwest submarket to continue its overall trend of positive absorption within the ever tightening marketplace. Expect to see an increase in proposed development and delivered product over the next 6-8 months. Although the supply set for viable, usable land is limited in the Great Southwest, we expect to see proposed, new construction expand outside of GSW proper, specifically to the east and south of the park. This new construction, paired with future relocations in the extra large category will free up some much needed product, adding to the available supply. However, with the maintained demand, we do not believe supply will overcome the robust demand seen throughout the market. The Great Southwest will continue to be a landlord’s market while rental rates continue to increase, and tenants begin going to market earlier to mitigate their risk of missing out on a lease or purchase opportunity. As we close out the year, expect to see vacancy rates hover at 8%-9% with several tenants in the medium and large categories out in the market as they make a strong push to finalize leases before the holiday season hits.

Duke

Clarion Partners

Prologis

First Industrial

Primera

Cabot Properties

RREEF

Exeter

DRA Advisors

Hillwood Properties

Seefried Properties

Proterra Properties

Greenfield

DCT Industrial

Industrial Income Trust

TIAA

25

Stream Realty Partners


T H I RD QUA RTER 2 0 1 3 • PIN N AC LE - LO N E STAR - T UR N P I K E

9.9% AVA I LA BILITY

up REN TA L RATES

flat CONST RUCTIO N

down VAC A NCY 3 7 0 0 PI N N AC L E POI N T D RI V E

Substantial absorption occurred during the quarter with the overall vacancy rate ending at 9.9%. This movement represented a 357 basis point decrease in the vacancy rate which was led by several transactions in the extra-large category. The largest deal was a 419,475 SF lease signed by OHL in Bentall Kennedy’s building at 3700 Pinnacle Point Drive. OHL has enjoyed a very flexible leasing arrangement in this building over the past few years with short term deals in and out of the space. During the quarter, OHL signed a term lease bringing this building to 100% occupancy. As we suspected in our writing during the second quarter, Continental Tire finalized a 378,000 SF deal in Dukes Grand Lakes project located at 4003 Gifford. The deal transacted on the heels of a 209,000 SF new deal by APL last quarter bringing this asset to 100% occupancy. Continental will move out of approximately 288,000 SF of a building owned by CalSters in South Dallas. Cherryman Industries leased approximately 170,000 SF in IndCor’s long-standing vacancy at 1421 S Cockrell Hill. This lease brings the direct vacancy in this asset to approximately 150,000 SF. IndCor is reported to have another transaction to fill this remaining vacancy that is likely to occur during the final quarter of 2013.

Statistics

IN V EN TORY

Flex [0 – 20,000 SF] Distribution - Small [20 – 50,000 SF] Distribution - Medium [50 – 100,000 SF] Distribution - Large [<100,000 SF] Distribution - Extra Large Total – Competitive Investor Owned Properties Total – Owner User Properties Overall Investment Grade Inventory

544,977 1,525,016 2,000,553 12,734,323 16,804,869 5,901,079 22,705,948

AVAIL AB L E SQUARE FE E T

151,549 248,956 309,465 3,405,265 4,115,235 122,863 4,238,098

26

3Q 2013 AVAIL AB IL ITY

25.8% 15.1% 14.1% 11.5% 12.6% 2.1% 9.9%

“The large st d eal was a 419,475 S F lease signed by O H L i n B e ntall Ke n ne d y ’s bui ld ing at 370 0 P i n nacle Point Drive. ”

HISTO RICAL AVAIL AB IL ITY T REND S 2Q13

27.8% 16.3% 13.9% 17.6% 17.4% 2.1% 13.4%

1Q13

27.8% 16.1% 13.9% 20.1% 19.3% 1.6% 14.7%

4Q12

3Q12

29.9% 11.1% 11.2% 21.7% 19.8% 4.6% 15.8%

27.3% 13.3% 11.2% 22.3% 20.3% 4.6% 16.2%


T H IR D Q UART E R 2 0 1 3 • P I N N AC L E - LO N E STAR - TUR NP I KE Very few modern options remain in the submarket and this area of Dallas is substantially supply constrained. Only approximately 1.4 million SF remains available in the extra-large category. This is comprised of eleven (11) options ranging from 80,000 to 247,000 SF. Of this available square footage, only two options totaling 305,000 SF are modern, ESFR buildings.

Leasi ng Activ i ty

Development There are a limited number of development options in the submarket. Crow Family’s Wildlife Park will likely announce a start on a 315,000 SF front-loader. This project is located on reclaimed flood plain land on the north side of I-30 near Lone Star Park. This building will be one of up to six (6) distribution buildings and four (4) rearload flex buildings. The overall project will comprise approximately 2.8 million SF of industrial product. Crow will market the remaining buildings to build-to-suit users as the project gets underway. First Industrial may also soon start its two-building 628,000 SF project on Cockrell Hill.

TENANT

LANDLORD

S QUA RE FEET

OHL

Bentall Kennedy

419,475

Continental Tire

Duke

378,285

Cherryman

IndCor

169,970

Distribution International

Billingsley

40,781

Majo r Te nan ts

Fu t u r e D e m a n d Demand has remained strong through the summer months and is anticipated to remain active during the fourth quarter which has historically been the market’s strongest quarter. We have a close to perfect storm brewing on the demand side with excellent drivers in population growth, job growth and the home building industry which is beginning to return to levels unseen since the downturn. Showings are up and tenant representation brokers are counseling their clients to make strong first round offers as many users have had space leased out from under them. This is a high degree of frustration by users of industrial space having very limited options due to the demand the market is recognizing.

Constar

Tree of Life

Alliance Data Systems

The Roomstore

Kuehne & Nagle

Krestmark Industries

Quality Logistics

Fulfillment Solutions

Ozburn-Hessey

Neiman Marcus

Cadbury Schweppes

Overhead Door

Southwest Molding

International Truck & Engine

Fed-Ex

Garden Ridge

Iron Mountain

Farley’s & Sathers Candy

Service Craft Logistics

Continental Tire

Cherryman Industries

Majo r O wne rs

Fo r e c a s t We are forecasting strong rental growth throughout the remainder of the year and well in to 2014. We have a rare situation in Dallas Forth Worth with most major submarkets supply constrained coupled with very strong demand drivers.

Billingsley Co.

Capri Capital

US Post Office

Hillwood Properties

IDI

First Industrial

Duke

New Tower Multi-Employer

Bentall Kennedy

DCT Industrial Trust

Holt Lunsford

Panattoni Development

TIAA CREF

Clarion Partners

Crow Holdings

IndCor

Prologis

Industrial Income Trust

Moderate investment sale activity is recognizing high valuations and trades given the high demand of institutional capital chasing an investment in industrial. We are in for a fun and interesting fourth quarter given the condition of the market.

27

Stream Realty Partners


T H I RD QUA RTER 2 0 1 3 • N O RT H EAST DAL L AS - G AR L AN D - M E SQUI T E

14.2% AVA I LA BILITY

up REN TA L RATES

flat CONST RUCTIO N

down VAC A NCY 2 3 0 0 SK Y L I N E D RI V E

The Northeast Dallas-Garland-Mesquite submarket continued its downward trend in vacancy through the 3rd Quarter of 2013 with a 121 basis point decrease in overall vacancy for investment grade product; the largest percentage change since the 1st quarter 2012. The most significant transactions that occurred over the 3rd quarter were: Hayes Retail Services expanded into an additional 530,100 SF at 1201 Chase Rd. in Mesquite, Midwest Air Technologies renewed their 232,100 SF

Statistics Flex [0 – 20,000 SF] Distribution - Small [20 – 50,000 SF] Distribution - Medium [50 – 100,000 SF] Distribution - Large [<100,000 SF] Distribution - Extra Large Total – Competitive Investor Owned Properties Total – Owner User Properties Overall Investment Grade Inventory

“ T he No rtheast DallasGa rland -Me sq ui te submarke t co n ti n ue d i t s d ownward tre nd i n vaca ncy through the 3rd Q uarte r o f 20 13...”

IN V EN TORY

4,922,087 3,425,563 5,642,453 4,876,686 13,476,641 32,343,430 13,797,062 46,140,492

AVAIL AB L E SQUARE FE E T

965,084 866,649 928,625 898,633 2,378,207 6,037,198 529,988 6,567,186

28

3Q 2013 AVAIL AB IL ITY

19.6% 25.3% 16.5% 18.4% 17.7% 18.7% 3.8% 14.2%

lease, Georgia Pacific backfilled 130,000 SF vacated by Prime Distribution, and Packaging Corporation of America expanded into an additional 53,635 SF. The submarket continued to see good overall activity in the Medium to Large asset class with expansions and new deals coming to the market during the 3rd quarter 2013. This type of activity creates a very optimistic view that the Northeast Dallas – Garland – Mesquite submarket is much improved and on its way to fully recovering.

HISTO RICAL AVAIL AB IL ITY T REND S 2Q13

21.5% 28.1% 16.4% 19.7% 19.0% 20.0% 4.7% 15.4%

1Q13

21.8% 26.1% 19.6% 22.8% 20.1% 21.4% 4.4% 16.3%

4Q12

21.2% 28.7% 20.4% 17.7% 20.1% 21.4% 5.2% 16.3%

3Q12

22.4% 25.8% 22.2% 17.5% 20.4% 21.2% 6.0% 16.6%


T H IR D Q UA RT ER 2 0 1 3 • N O RT HE AST DAL L AS - G ARL AN D - M ESQ UI TE

Development/Investment Sales •

Leasi ng Activ i ty

Greenfield Partners purchased both TIAA-CREF and Cobalt’s industrial portfolios consisting of 486,320 SF within the Northeast Dallas-Garland-Mesquite submarket, which positions them as one of the largest owners in the submarket. DCT carved out two buildings in Garland from their Dallas Portfolio, consisting of 80,784 SF on Perimeter, selling them to WPI-Perimeter, LLC.

TENANT

LANDLORD

S QUA RE FEET

Hayes Retail Services

TDC

530,100

Midwest Air Technologies

IDI

232,100

Georgia Pacific

Prologis

130,300 53,635

Packaging Corporation of America Cobalt

Sealy and Co has reached an agreement to sell their 4 building 398,000 SF Class A portfolio located at Miller Road and Jupiter Road.

Fu t u r e D e m a n d During the 3rd quarter of 2013, there continued to be demand for medium to large sized tenants who were out surveying the market for options. Stream anticipates the following tenants will focus on finalizing their transactions during the 4th quarter of 2013. MPI wood continues to survey the market for 90,000 to 130,000 SF options; Metals USA and Bronco Packaging are evaluating 45,000 to 80,000 SF options; API/Mutual, CED, and Optical Cabling Solutions are narrowing in on selecting 25,000 to 35,000 SF options; Allied Insulation looks to finalize a 20,000 to 25,000 SF requirement; while Artizone is finalizing a 10,000 to 15,000 SF requirement; Dallas Golf looks to complete a 10,000 to 15,000 SF purchase requirement.

Bonded Inspection

DCT

34,285

Dixie Plywood Company

Prologis

33,264

Dixie Plywood Company

Prologis

30,158

DSS Firetrol

Comerica Bank

30,100

Chloe Lighting

Perth Unlimited

18,920

Wycliff @ Douglas

DRA Advisors

14,283

Grabber Construction

Cobalt

13,440

Vectornav Technologies

Whitehall

13,430

Aston Global

Frontier Equity

12,600

Bozzano Foods

DCT

10,038

Glen Martin

DCT

9,068

Majo r Te nan ts

Fo r e c a s t Stream expects the Northeast Dallas- Garland – Mesquite submarket to continue to see companies grow their businesses resulting in expansions of their current facilities. With the surrounding submarkets throughout the metroplex tightening, we anticipate more companies to consider the Northeast Dallas – Garland – Mesquite submarket as an option when evaluating their real estate needs. We believe we will see more institutional product hit the sale block as investors seek to capitalize on the aggressiveness of the current capital looking for acquisition opportunities. Additionally, due to the limited supply the owner user activity should continue to remain strong through the remainder of 2013 for the Small to Medium size tenants as long as aggressive financing and low interest rates are being offered. We are optimistic the Northeast Dallas – Garland – Mesquite submarket will have another strong quarter during the final few months of 2013 as demand continues to outpace supply and the competitive landscape tightens.

Bissell Corp.

Ingersoll Rand

Marazzi Tile

Boise Cascade

Integra Color

Plastipak Packaging

Dal-tile Corp.

Interceramic

Prime Distribution

Fossil

International Truck / SST

Raytheon

Georgia Pacific

Kingsley Tool

Sears

Hatco

Kraft Foods

Sherwin Williams

IMO/Varo

Shippers Warehouse

Speed FC

Packaging Corp. of America Vendo-Sanden

Valspar

Majo r O wne rs DRA Advisors

Sentinel Real Estate Corp

Cobalt

DCT Industrial

Clarion

TA Associates

Duke

Primera

Dalphin

Indcor

Prologis

Exeter

First Industrial

PS Business Parks

Frontier Equity

Brookfield Funds

Liberty Property Trust

Huntington Industrial

Transpacific Development Co. Cabot International Airport Centers

IDI

Greenfield

Hillwood Investment Properties

29

Stream Realty Partners


T H I RD QUA RTER 2 0 1 3 • PLA N O - R IC HAR DSO N

14.5% AVA I LA BILITY

up REN TA L RATES

flat CONST RUCTIO N

down VAC A NCY 2 8 0 0 T E C H N OLOGY

The Plano – Richardson submarket ended the 3rd quarter 2013 with an overall vacancy rate for investment grade product at 14.5%, a decrease of 120 basis points compared to the 2nd quarter 2013 which ended at 15.7% vacant. The most active product type this quarter was the Medium Distribution product which experienced a 426 basis point swing. As we have experienced each quarter this year, we continue to see great demand and strong activity in all size ranges throughout the Plano – Richardson submarket. As a result, we are witnessing good rental growth and compressed concessions for well positioned and functional vacancies. The competitive set has undoubtedly tightened making it much more difficult for tenants to leverage a relocation space as a viable option when it comes to renewing their lease. We expect this trend will continue through the final quarter of 2013 and into the New Year.

Statistics Flex [0 – 20,000 SF] Distribution - Small [20 – 50,000 SF] Distribution - Medium [50 – 100,000 SF] Distribution - Large [<100,000 SF] Distribution - Extra Large Total – Competitive Investor Owned Properties Total – Owner User Properties Overall Investment Grade Inventory

IN V EN TORY

13,949,458 2,260,214 2,066,552 1,687,746 1,079,378 21,043,348 11,999,149 33,042,497

AVAIL AB L E SQUARE FE E T

3,648,139 396,648 297,711 258,667 0 4,601,165 174,708 4,775,873

30

3Q 2013 AVAIL AB IL ITY

26.2% 17.6% 14.1% 15.3% 0.0% 21.9% 1.5% 14.5%

“We ex p e ct this trend wi ll co n ti n ue through the f i nal q uarte r o f 201 3 and i n to the New Year.”

HISTO RICAL AVAIL AB IL ITY T REND S 2Q13

28.0% 18.5% 18.4% 18.5% 0.0% 23.9% 1.4% 15.7%

1Q13

26.2% 21.1% 18.3% 17.9% 38.0% 25.3% 0.8% 16.5%

4Q12

3Q12

26.3% 21.7% 25.3% 20.2% 44.2% 26.6% 1.2% 17.4%

26.3% 23.2% 25.3% 23.7% 44.2% 27.0% 1.4% 17.7%


T HI R D Q UART E R 2 0 1 3 • P L AN O - R I CH A R DSON

Investment Sales •

There is currently no new development under construction in the Plano – Richardson submarket.

Liberty Property Trust has closed on the multi-city Cabot Properties portfolio of which seven buildings totaling approximately 665,000 SF were located in Plano.

Leasi ng Activ i ty TENANT

Fu t u r e D e m a n d With demand continuing to be strong throughout the Plano – Richardson submarket we anticipate the following Tenants to focus on executing leases during the 4th quarter 2013: CVE, GE, Optical Cabling Systems, Vox Technologies, and an undisclosed user are evaluating 35,000 SF spaces; We-Do, CDS, Mobilex, McDowell & Company, and Car TV are narrowing in on 20,000 SF options; and Aaustra and Iphotronix are in search of 15,000 - 10,000 SF buildings.

S QUA RE FEET

Invodo

34,285

Redbumper

26,971

Bag Corp.

26,965

Big League Prep Academy

17,938

IPI

17,415

Picture People

16,964

S&R Controls

16,800

Ducker Labs

16,780

Kinetrol

14,126

Misfit Baggers

12,544

EQUUS

12,150

D Cables

11,236

Furniture By Consignment

10,400

Valspar

9,787

Bausen Woods

9,473

The HR Group

7,980

Clairex

7,127

Fo r e c a s t As we enter the final quarter of another year, it great to see how far the Plano – Richardson submarket has come since the New Year. Ending 2012 at 17.4% vacant the submarket has rebounded nearly 300 basis points thus far and once again established a new record low vacancy rate for the submarket since 2005 when The Quarter was first published. As we look at the current demand we predict to end the year with another decrease in the overall vacancy rate for investment grade product. We fully anticipate the overall health of the submarket will continue to improve as we move into the holiday season and 4th Quarter 2013. Demand remains strong and with no new supply slated to come online we are excited to see what the end of the year has in store for the Plano – Richardson submarket.

Majo r Te nan ts Alcatel Lucent

Dal-Tile

Fossil

Cisco Systems

EDS

Fujitsu

Dallas Morning News

Ericsson

Hewlett Packard

Disctronics

Flextronics

Nortel Networks

Garden Ridge

Adam's Golf

Genband

Yahoo!

Caremark

Rockwell Collins

Majo r O wne rs

31

AEW

RMB Investments

Divident Capital Trust

First Industrial

Charter Holdings

Sealy & Company

PS Business Parks

Stockbridge

Argent Property Co.

Cabot

International Airport Centers

Kennington Properties

IIT

DRA Advisors

Property Reserve

KBS

Wayzata

Prologis

IndCor

Liberty Property Trust

Stream Realty Partners


T HI RD QUA RTER 20 1 3 • D F W A IR P O RT

7.3% AVA I LA BILITY

up REN TA L RATES

up CONST RUCTIO N

down VAC A NCY 3 3 0 S ROYA L L A N E

"The D FW A i rp o r t i nd u s t r ial ma r ke t e nd e d the 3rd q uarte r wi th the lowe st vacancy rate t hat t he subma r ke t has se e n s i nce S tream b e gan pub lishi ng “ The Q uarte r ” ."

The DFW Airport industrial market ended the 3rd quarter with the lowest vacancy rate that the submarket has seen since Stream began publishing “The Quarter”. This may also mark the lowest vacancy rate we will see for several quarters moving forward as speculative projects are beginning to deliver with new, available space. Third quarter ended with an overall investment grade vacancy rate of 7.26%, down approximately 110 basis points from second quarter 2013. We saw the largest movement in extra large product type as vacancy rates dropped 277 basis points ending at 4.66%. This was mainly due to numerous second generation leases executed during the 3rd quarter. What is not reflected within the numbers, and will make a difference over the next two quarters are the anticipated move outs. Along with move outs, there is a decent number of speculative projects that will be delivered during the fourth quarter 2013 and first quarter 2014. Transactions recently completed in the third quarter, highlight the strong activity we are seeing across all product categories.

Statistics Flex [0 – 20,000 SF] Distribution - Small [20 – 50,000 SF] Distribution - Medium [50 – 100,000 SF] Distribution - Large [<100,000 SF] Distribution - Extra Large Total – Competitive Investor Owned Properties Total – Owner User Properties Overall Investment Grade Inventory

IN V EN TORY

AVAIL AB L E SQUARE FE E T

6,158,673 2,750,744 8,468,901 10,628,710 23,653,999 51,661,027 14,053,376 65,714,403

1,106,773 304,556 783,934 1,097,860 1,179,979 4,473,102 295,725 4,768,827

32

3Q 2013 AVAIL AB IL ITY

18.5% 11.0% 9.2% 10.4% 4.7% 8.7% 2.1% 7.3%

HISTO RICAL AVAIL AB IL ITY T REND S 2Q13

1Q13

20.7% 10.6% 10.0% 9.8% 7.4% 10.1% 1.9% 8.4%

22.4% 11.7% 10.6% 13.0% 7.4% 11.1% 1.5% 9.0%

4Q12

3Q12

21.4% 14.0% 10.9% 17.7% 7.8% 12.4% 2.5% 10.2%

22.3% 15.8% 14.1% 15.0% 7.3% 12.3% 2.6% 10.2%


T HI R D Q UART E R 2 0 1 3 • DF W A I R P ORT

Development

Leasi ng Activ i ty

Ground continues to break on new speculative buildings around the airport. Deliveries during the 3rd quarter include Amazon’s buildto-suit that was developed by Hilllwood at 980 W. Bethel Rd. The 1,100,000 SF e-commerce facility delivered and is in full operation. Trammell Crow delivered Trade Center 7 at 2425 Esters Blvd. totaling 298,461 SF. The building delivered 100% preleased to Jacobson Logistics. Oakmont delivered 1650 Lakeside Pkwy totaling 292,841 SF in Flower Mound, TX. The building delivered approximately 50% preleased. •

TENANT

LANDLORD

S QUA RE FEET

Jacobson Logistics

Trammell Crow

298,461

Impact Labor

Cabot

274,808

Anna’s Linnens

Duke

263,325

Graybar Electric

Invesco

202,500

KMM Telecom

DCT Industrial

200,000

Bennche, Inc.

Cabot

75,000

SourceHOV

Duke

70,000

Sonexus Health

Majestic

55,000

Lakeside I & II – Exeter broke ground on 2 crossdock buildings on Lakside Pkwy in Flower Mound. It is rumored that they will complete the site work for both buidlings (351,832 SF & 231,754 SF) but only go vertical with the 231,754 SF southern building.

Majo r Te nan ts

Fresenius Medical Build-To-Suit – Approximately 500,000 SF is under construction as a build-to-suit for Fresenius Medical. The cross dock building will be located on the southwest corner of Royal Ln. and Bethel Rd. International Commerce Park – Trammell Crow/Clarion/ Rosewood-Under construction, and scheduled for delivery in the fourth quarter are the remaining two buildings of a three building project totaling 1,000,000 SF. Nearing the final stages of construction, with the painting of the tilt panels underway, Trade Center 6 will be a 500,000 SF cross dock. Trade Center 9 will be a 202,500 SF shallow bay, rear load building and will deliver 30 days after TC-6. All buildings are in the City of Irving and located on DFW Airport ground leased land.

Impact Labor

Ceva Logistics

The Container Store

Syncrean

Mohawk Carpets

Home Depot Supply

Anna's Linens

Uline

Hemispheres

US Postal Service

Amazon

Samsung

Exel Logistics

Inland Cold Storage

Seimens

Network Logistics

Best Buy

GameStop

Broader Bros

Acuity Lighting

Kimberly Clark

Kid Kraft

Kellogg's

Welton USA

Natures Best

Kohler

Glazier Foods

SMS Infocom

Jacobson Logistics

Majo r O wne rs

Lakeside Commerce Center – Oakmont – Building A totaling 462,779 SF will deliver in October 2013. Building B is 292,849 SF and was delivered in September 2013 50% preleased. Valley Parkway Distribution Center – IDI & Industrial Income Trust (IIT) – Walls are tilted on the 529,000 SF cross dock and it appears that the building will be delivered in November 2013. 350 S. Northpoint – Industrial Income Trust (IIT) – Walls are tilted and the roof is almost complete on the 300,800 SF cross dock building. Ownership is very close to signing a prelease with American Building Products for the entire facility.

Duke Realty

Cabot Properties

Industrial Income Trust

Clarion Partners

Majestic Realty

TA

Cobalt Capital Partners

Crow Holdings

Stockbridge

Exeter

Hines

Invesco

IDI

Pac Trust

TIAA Cref

Prologis

Trammell Crow

Industrial Properties

Colony Realty Partners

Oakmont

Primera

DCT Industrial

Hudson Advisors

KTR

IndCor

ThermoTek (40,000 SF); Rotobrush (25,000 SF); Rufflebutts (20,000 SF); Rhonda Allison (20,000 SF); ZAK Products (15,000 SF)

DFW Global Logistics Centre – This 2 building project totals 263,320 SF and is made up of 1 shallow bay (160’ deep) rear load building totaling 120,070 SF and 1 shallow bay (180’ deep) rear load building totaling 143,320 SF. Both are scheduled to be delivered February 2014.

Overview Moving forward, we will continue to see demand maintain a steady pace and will start to see vacancy rates stabilize or slightly increase due to the amount of new product that will be delivering over the next 12 months. We can expect new projects to begin over the next two quarters, consisting of both bulk distribution and shallow bay distribution buidlings. We are beginning to see preleasing become the new trend in extra large and large distribution space. Many of the new speculative projects will deliver with a percentage pre-leased. Additionally, it feels like flex space is improving at a rapid pace as the market continues to strengthen, which is a great indication that we are experiencing total market improvement.

Fu t u r e D e m a n d We saw a number of large transactions signed during the 3rd quarter. Activity continues to be strong with numerous other transactions in the market or out for signature. The following Tenants continue to evaluate options around DFW Airport for their requirements. Undisclosed Tenant (425,000 SF) has leases out for signature at 2700 Regent; American Building Products (308,000 SF) has leases out for signature; Schneider Electric (90,000 SF); Samsung (75,000 SF); Barcel (67,000 SF); Fresenius (40,000 SF) World Trade Cargo (40,000 – 50,000 SF)

Kay Chemical

33

Stream Realty Partners


T HI RD QUA RTER 2 0 1 3 • N O RT H ST EM M O N S - VALWO O D

9.1% AVA I LA BILITY

up REN TA L RATES

flat CONST RUCTIO N

down VAC A NCY 1 5 4 1 C H A M PI ON

During the 3rd quarter 2013, the North Stemmons – Valwood submarket realized another great quarter as overall investment grade vacancy rate decreased by 130 basis points ending at 9.1%. Year to date, net absorption totals approximately 650,000 SF and overall leasing activity through the third quarter has been just over 2,000,000 SF. Activity will remain solid through the end of 2013 as the last few large spaces have prospects negotiating lease terms. One trend that we have seen and continues to strengthen is rental rates and demand for class B and C warehouse space. This is mainly due to the lack of availability within the submarket.

During the 3rd quarter 2013 no new development broke ground within the North Stemmons – Valwood submarket. Below is a list of developments that are scheduled to break ground in the near future:

Flex [0 – 20,000 SF] Distribution - Small [20 – 50,000 SF] Distribution - Medium [50 – 100,000 SF] Distribution - Large [<100,000 SF] Distribution - Extra Large Total – Competitive Investor Owned Properties Total – Owner User Properties Overall Investment Grade Inventory

se e n a nd co n ti n u es to stre ng the n is re n tal rates a nd de ma nd fo r c las s B

Development

Statistics

“One tre nd tha t we have

IN V EN TORY

5,006,987 2,773,717 11,027,385 6,698,149 9,953,975 35,460,213 8,019,695 43,479,908

AVAIL AB L E SQUARE FE E T

928,516 195,865 1,259,668 533,827 815,447 3,733,323 211,165 3,944,488

34

3Q 2013 AVAIL AB IL ITY

19.0% 7.1% 11.5% 7.7% 8.4% 10.5% 2.6% 9.1%

a nd C wa re house space.”

HISTO RICAL AVAIL AB IL ITY T REND S 2Q13

19.2% 7.6% 12.1% 9.8% 11.0% 12.0% 3.6% 10.4%

1Q13

21.7% 7.5% 11.8% 12.9% 16.3% 14.3% 2.4% 12.1%

4Q12

3Q12

23.4% 7.9% 12.1% 13.4% 16.3% 14.8% 2.2% 12.5%

24.5% 8.5% 13.3% 11.5% 17.1% 15.2% 2.7% 13.0%


T HI RD Q UART E R 2 0 1 3 • N O RT H ST E M M O N S - VA LWOOD •

HOLT / ML Realty - We expect Holt Lunsford to break ground on three new buildings on Crosby Rd. near Hutton. The development totals 280,800 SF and features two rear load buildings and one front load building.

Billingsley – Billingsley has announced that they will be moving forward with their first building on the Mercer Crossing tract of land they purchased. The site is located at the northwest corner of I-35 and I-635. The first building will be a 340,000 SF cross dock distribution building.

Leasi ng Activ i ty

From an investment sales standpoint, below are the projects and buildings that are currently active on the market: Industrial Properties / GE – This package is a multi submarket package with the majority being in the N Stemmons / Valwood area. A buyer has been picked and is moving forward with due diligence. This portfolio should trade at the end of the year.

TENANT

LANDLORD

MS International

Cobalt

Hugh M. Cunningham

IIT

76,000

Hooberman Company

User Sale

64,660

CE Xchange

Sealy & Co.

58,180

Starpower Flooring

AEW

43,142

RR Donnelley & Sons

RREEF

41,500

Johnson Brothers Bakery

Crow Holdings

39,750

Maniscalso Stone

Prologis

38,492

Brilliant Fullfillment

User owned

13,938

AP Medical

First Industrial

11,668

Mintech

Vintage Interest

10,912

Revolution Retail

First Industrial

Vintage Interest – Vintage Interest has put three assets in Valwood on the market for sale. The buildings within Valwood total 225,788 SF and are 100% leased. Stream is marketing the portfolio and can be reached at 214-267-0472 with any questions you may have.

S QUA RE FEET 105,005

9,356

Majo r Te nan ts

Crow Holdings – There is one asset located at 2005 Valley View Ln. (255,420 SF) that is included within a 5 building package that is currently on the market.

Fu t u r e D e m a n d Activity remains consistent as numerous tenants continue to search for space. As we enter the 4th quarter, some of the larger tenants are being forced to consider new development options near DFW Airport due to the lack of available bulk space within the N Stemmons / Valwood submarket. One interesting data point within the N Stemmons / Valwood submarket pertains to the extra large product type. When looking at available vacancies over 100,000 SF, there are currently 3 functional spaces. One of the 3, a 216,000 SF space is negotiating leases and the other two spaces have in excess of 5 proposals out on each space. It is a very real possibility that we end the year with not one single unencumbered space available above 100,000 SF. Below are tenants who are currently in the market evaluating options. Undisclosed (200,000 SF) focused on 1720 Hayden; Trend Offset Printing (50,000 SF); TalonStar (40,000 SF); Mike’s Hobby Shop (50,000 SF).

Arteriors

UPG

Pro Health

Cirus One

OK Paper

Ingram Micro

4Front Engineering

IFF

Unisource

Rudy's Tortilla

Carrier

Lennox

Staton

Illes Food

Trend Offset Printing

Sports Supply Group

United Advertising Media

American Hotel Register

Majo r O wne rs Crow Holdings

DCT Industrial

Morgan Stanley

Clarion

Duke Realty

Sealy & Company

ProLogis

First Industrial

IndCor

TIAA-CREF

Industrial Properties ML Realty Partners

Billingsley Company

PFG

PS Business Partners

Fo r e c a s t As 2013 moves through the 4th quarter and closes out the year, we will continue to see vacancy rates tighten as no new speculative space will be delivered during the first half of 2014. This will allow landlord’s to continue to push rental rates and hold firm on minimal incentives and tenant improvements. Tenant’s whose leases expire during the next 12 – 18 month period should really understand their renewal options and the timeframes within those options. We will begin to see Landlords take the notice periods very seriously with the potential of leasing spaces out from under tenants who are slow to make decisions. We expect demand to remain steady through the first half of 2014.

35

Stream Realty Partners


T H I RD QUA RTER 2 0 1 3 • S O U T H ER N DA L L AS

11.5% AVA I LA BILITY

up REN TA L RATES

up CONST RUCTIO N

flat VAC A NCY 2 0 1 S I N T E RSTAT E 4 5

“ T he re are ove r 4 mi lli on SF of large tenant project s circling t he Sou the rn Dallas Coun ty Submarket .” The Southern Dallas County Industrial Market continued to show strong large tenant demand through the 3rd quarter of the year. While there was not a lot of activity in the existing real estate, the market remains white hot for build-to-suits and new development. 3rd Quarter vacancy was unchanged for Overall Investment Grade Inventory at 11.5%. Total absorption for the quarter was a positive 24,620 SF.

in Hutchins. Brim Laundry Machinery acquired the vacant building owned by American Air Filter for a reported $3,725,000. The manufacturing and distribution property is 340,400 SF and sits on a 57 acre site. Continental Tire had been shopping the market for new space for several months. They finally inked a deal with Duke at Grand Lakes in Grand Prairie for 378,000 SF. They leave behind 287,827 SF at DalPort I, 201 S. IH-45. The owner, CalSTRS, feels they will have more opportunity to lease the entire 758,922 SF space based

Vacancy for User/Owner classified properties improved 150 basis points to 4.0% due in large part to the sale of 302 Nichols Road

Statistics Flex [0 – 20,000 SF] Distribution - Small [20 – 50,000 SF] Distribution - Medium [50 – 100,000 SF] Distribution - Large [<100,000 SF] Distribution - Extra Large Total – Competitive Investor Owned Properties Total – Owner User Properties Overall Investment Grade Inventory

HISTO RICAL AVAIL AB IL ITY T REND S

IN V EN TORY

AVAIL AB L E SQUARE FE E T

3Q 2013 AVAIL AB IL ITY

2Q13

1Q13

4Q12

486,934 1,563,458 1,478,520 2,422,518 16,431,145 22,382,575 22,270,276 44,652,851

57,589 243,679 274,100 418,733 3,226,981 4,221,082 898,579 5,119,661

11.8% 15.6% 18.5% 17.3% 19.6% 18.9% 4.0% 11.5%

15.2% 16.9% 12.6% 17.3% 17.9% 17.3% 5.5% 11.5%

23.0% 18.9% 13.0% 12.3% 9.1% 10.8% 5.5% 8.1%

21.0% 20.5% 13.0% 13.4% 12.4% 13.3% 5.5% 9.4%

36

3Q12

20.5% 17.9% 13.7% 16.7% 14.7% 15.3% 5.9% 10.5%


T HI R D Q UART E R 2 0 1 3 • SO UT H ER N DA LLAS on the tenant demand in the market for large tenant spaces. XL Distribution increased 180 basis points to 19.6% as a result.

Leasi ng Activ i ty

Development activity in Southern Dallas County continued on its staggering pace. There are four (4) build-to-suits under construction totaling 2.5 million SF with a minimum of another two (2) projects totaling more than 1.8 million SF that should commence construction before the end of the year.

Development •

LANDLORD

Brim Laundry (buyer)

American Air Filter (seller)

FMI Recycling

2929 Glenfield LLC

68,000 SF

Texas Hydraulic & Equip.

Letts Industries

15,024 SF

Chocolate Mint Foundation

Spar Five Group

Continental Tire

CalSTRS

Panattoni Build-to-suit DalPort: Panattoni has been engaged by Procter & Gamble to construct a new 1.4 million SF distribution center in the DalPort Trade Center located on the frontage of IH-45 and Mars Road in Wilmer.

Quaker Build-to-suit Prologis Park 20/35: Quaker will consolidate and expand its DFW operations into a 1.2 million SF build-to-suit project at Prologis 20/35. BMW Build-to-suit Prologis Park 20/35: Prologis delivered the 282,000 SF parts distribution center for BMW. The site will allow for approximately 100,000 SF of expansion.

L’Oreal Build-to-suit Ridge Logistics Center: Ridge Property Trust is nearing completion on the 513,000 SF build-to-suit for L’Oreal.

Ace Hardware Build-to-suit Sunridge Industrial Park: Centerpointe Properties is going vertical on the 450,000 SF build-to-suit for Ace Hardware in Sunridge Industrial Park.

S QUA RE FEET 340,400 SF

19,373 SF -287,827 SF

Majo r Te nan ts

In-N-Out Burger SouthPointe: In-N-Out Burger has acquired a 23.7 acre site in SouthPointe Corporate Center for a to-beconstructed building. The site had originally been planned for 440,000 SF.

TENANT

American Leather

Target

Continental Cabinets

McGraw-Hill Companies

Georgia Pacific

Unilever

Solo Cup

Mobis

Wal-Mart

Corporate Express

Cintas

Advanced H2O

Frito-Lay

Service Craft Logistics

OHL / Arch Chemical

Freeman

Fed-Ex Ground

Continental Tire

Conn's

The Freeman Companies

Toys-R-Us

American Standard

BMW

Whirlpool

Mission Foods

Quaker

United Natural Foods

Dart Container Corp

WhiteWave Foods

Kohl’s

Majo r O wne rs Duke Realty

DRA Advisors CalSTRS

Cummins Design build at Mountain Creek: Hill & Wilkinson is finishing the 352,572 SF design build for Cummins Southern Plains in Mountain Creek.

Fo r e c a s t

First Industrial

CBRE Realty Trust

Hillwood Properties

AREA Property Partners

Champion Partners

Prologis

Seefried Properties

Principal Financial Group

Weeks Robinson

iStar

TA Associates

USAA

Clarion Partners

Prime Rail Interests

Ridge Property Trust

Stockbridge

Greenfield

Robust development activity in the build-to-suit market shows no signs of slowing. There are over 4 million SF of large tenant projects circling the Southern Dallas County Submarket. The area remains an attractive location for the largest distribution operations to take advantage of access to I-35, I-45, I-20 and the UP Dallas Intermodal, all within a 10 mile radius. Stream Industrial expects a slight improvement in the vacancy rates to finish out the year and a moderate uptick in rental rates given the limited supply set. We do not expect any slowdown in development given the large volume of prospective tenants.

37

Stream Realty Partners


T H I RD QUA RTER 2 0 1 3 • S O U T H ST EM M O N S C O RR I DO R

7.5% AVA I LA BILITY

up REN TA L RATES

up CONST RUCTIO N

down VAC A NCY 1 0 0 GL ASS ST RE E T

The South Stemmons Corridor finished the third quarter of 2013 as one of the healthiest submarkets in the DFW metroplex. The vacancy rate has decreased to approximately 7.5% which is lower than the overall DFW vacancy rate of 8.1%. Additionally, there has been approximately 1,214,655 SF of positive net absorption Year-To-Date. There continues to be a high volume of sales transactions fueled by low interest rates. Small to medium sized user buildings are in high demand and are selling at above market prices. Appropriately priced user buildings are flying off the market but buyers are price conscious and looking for deals. Properties that are overpriced or lacking desirable amenities are not selling. The North Trinity and Design District is experiencing tremendous deal velocity as there is a strong demand for small user buildings. Properties with good frontage and heavy parking are in high demand. Additionally, new restaurants and bars like Bowl Lounge and Pakpao Thai have opened and are having a positive effect on the area.

Development

“The No rth Trinity and De si gn Distr ic t is ex p e ri e nci ng tre mendous d eal ve lo ci ty as there is a stro ng d e mand fo r s mall use r bui ld i ngs .”

HISTO RICAL AVAIL AB IL ITY T REND S 4Q12

3Q12

2Q12

Carlisle Interests delivered two flex buildings totaling 34,400 SF at Cedar Springs Business Park near Love Field.

The Trinity Strand Trail is under construction and will be delivered in the spring 2014.

Multi-family developers such as Harwood and Alliance Residential Co. are under construction and will be delivering new units in the Design District.

Love Field Airport is expanding and will open a new terminal once the Wright Amendment is lifted. The amendment will be lifted 4th quarter 2014.

38

1Q12


T HI RD Q UART E R 2 0 1 3 â&#x20AC;˘ SO UT H ST E M M O NS COR R I DOR

Fu t u r e D e m a n d

Majo r Activ i ty

We anticipate that the South Stemmons Corridor will continue its reign as one of the healthiest sub markets in DFW. Landlords of institutional grade industrial product will push lease rates as the supply of functional industrial product diminishes. As long as interest rates remain low you will continue to see a high volume of user building sales. The Design District will continue to undergo a transformation as new multi-family and retail sites will be delivered. Additionally, the expansions of Love Field Airport and hospitals in the medical district will increase demand in Brook Hollow.

T E N AN T/ B U YE RS

L AN D LO RD / S E L L E RS

S QUA RE FEET

Wilson Office Interiors

G&I VII Space Center LP

55,915

NDI Office Furniture, LLC

G&I VII Space Center LP

51,992

McMahan's Flooring

Turbo Air Group

46,800

Artistic Design

1300 Crampton LP

39,900

SLRC Holdings Inc

Regal Jones LLC

29,378

Roadtex

EastGroup Properties

27,900

Squibb Taylor

ARA

22,688

Majo r Te nan ts

Atrium Door

Parkland Hospital

Future Foam

Childrenâ&#x20AC;&#x2122;s Hospital

Matress Firm

HOBI International

Freeman Exhibitors

Southwest Airlines

Imlach Collins

Labatt Food

UTSW

Majo r O wne rs

39

Apex Plumbing

Gillis Thomas

Clampitt Paper

Cabot Properties

Irwin Grossman

Sealy

Charter Holdings

Jim Lake Company

SLJ Company

Cienda Partners

MLB Properties

Felder Property Group

Cobalt Capital Partners

Monet

Cullum Interests, Inc.

East Group

Prologis

First Industrial

DRA Advisors

Stream Realty Partners



The Quarter 3Q2013