CoStar Industrial Statistics. Y e a r - E n d Dallas/Ft. Worth Industrial Market

Transcription

1 CoStar Industrial Statistics Y e a r - E n d

2 Year-End 2017 Dallas/Ft. Worth Table of Contents Table of Contents A Methodology B Terms & Definitions C Market Highlights & Overview CoStar Markets & Submarkets Inventory & Development Analysis Inventory & Development Analysis Select Top Deliveries Select Top Under Construction Properties Figures at a Glance Figures at a Glance by Building Type & Market Figures at a Glance by Building Type & Submarket Historical Figures at a Glance Leasing Activity Analysis Select Top Lease Transactions Sales Activity Analysis Sales Activity Analysis Select Top Sales Transactions Analysis of Individual CoStar Submarket Clusters DFW Airport Market East Dallas Market Great SW/Arlington Market North Ft Worth Market Northeast Dallas Market Northwest Dallas Market South Dallas Market South Ft Worth Market South Stemmons Market 2018 CoStar Group, Inc. CoStar Industrial Statistics A

3 Dallas/Ft. Worth Year-End 2017 Methodology The CoStar Industrial Statistics calculates Industrial statistics using CoStar Group's base of existing, under construction and under renovation Industrial buildings in each given metropolitan area. All Industrial building types are included, including warehouse, flex / research & development, distribution, manufacturing, industrial showroom, and service buildings, in both single-tenant and multi-tenant buildings, including owner-occupied buildings. CoStar Group's global database includes approximately 119 billion square feet of coverage in 5.4 million properties. All rental rates reported in the CoStar Industrial Report are calculated using the quoted rental rate for each property. For information on subscribing to CoStar s other products and services, please contact us at COSTAR, or visit our web site at Copyright 2018 CoStar Group, Inc. All Rights Reserved. Although CoStar makes efforts to ensure the accuracy and reliability of the information contained herein, CoStar makes no guarantee, representation or warranty regarding the quality, accuracy, timeliness or completeness of the information. The publication is provided as is and CoStar expressly disclaims any guarantees, representations or warranties of any kind, including those of MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. CoStar Group, Inc L ST NW Washington, DC (800) NASDAQ: CSGP B CoStar Industrial Statistics 2018 CoStar Group, Inc.

4 Year-End 2017 Dallas/Ft. Worth Terms & Definitions Availability Rate: The ratio of available space to total rentable space, calculated by dividing the total available square feet by the total rentable square feet. Available Space: The total amount of space that is currently being marketed as available for lease in a given time period. It includes any space that is available, regardless of whether the space is vacant, occupied, available for sublease, or available at a future date. Build-to-Suit: A term describing a particular property, developed specifically for a certain tenant to occupy, with structural features, systems, or improvement work designed specifically for the needs of that tenant. A build-to-suit can be leased or owned by the tenant. In a leased build-to-suit, a tenant will usually have a long term lease on the space. Buyer: The individual, group, company, or entity that has purchased a commercial real estate asset. Cap Rate: Short for capitalization rate. The Cap Rate is a calculation that reflects the relationship between one year s net operating income and the current market value of a particular property. The Cap Rate is calculated by dividing the annual net operating income by the sales price (or asking sales price). CBD: Abbreviation for Central Business District. (See also: Central Business District) Central Business District: The designations of Central Business District (CBD) and Suburban refer to a particular geographic area within a metropolitan statistical area (MSA) describing the level of real estate development found there. The CBD is characterized by a high density, well organized core within the largest city of a given MSA. Class A: A classification used to describe buildings that generally qualify as extremely desirable investment-grade properties and command the highest rents or sale prices compared to other buildings in the same market. Such buildings are well located and provide efficient tenant layouts as well as high quality, and in some buildings, one-ofa-kind floor plans. They can be an architectural or historical landmark designed by prominent architects. These buildings contain a modern mechanical system, and have above-average maintenance and management as well as the best quality materials and workmanship in their trim and interior fittings. They are generally the most attractive and eagerly sought by investors willing to pay a premium for quality. Class B: A classification used to describe buildings that generally qualify as a more speculative investment, and as such, command lower rents or sale prices compared to Class A properties. Such buildings offer utilitarian space without special attractions, and have ordinary design, if new or fairly new; good to excellent design if an older non-landmark building. These buildings typically have average to good maintenance, management and tenants. They are less appealing to tenants than Class A properties, and may be deficient in a number of respects including floor plans, condition and facilities. They lack prestige and must depend chiefly on a lower price to attract tenants and investors. Class C: A classification used to describe buildings that generally qualify as no-frills, older buildings that offer basic space and command lower rents or sale prices compared to other buildings in the same market. Such buildings typically have below-average maintenance and management, and could have mixed or low tenant prestige, inferior elevators, and/or mechanical/electrical systems. These buildings lack prestige and must depend chiefly on a lower price to attract tenants and investors. Construction Starts: Buildings that began construction during a specific period of time. (See also: Deliveries) Contiguous Blocks of Space: Space within a building that is, or is able to be joined together into a single contiguous space. Deliveries: Buildings that complete construction during a specified period of time. In order for space to be considered delivered, a certificate of occupancy must have been issued for the property. Delivery Date: The date a building completes construction and receives a certificate of occupancy. Developer: The company, entity or individual that transforms raw land to improved property by use of labor, capital and entrepreneurial efforts. Direct Space: Space that is being offered for lease directly from the landlord or owner of a building, as opposed to space being offered in a building by another tenant (or broker of a tenant) trying to sublet a space that has already been leased. Existing Inventory: The square footage of buildings that have received a certificate of occupancy and are able to be occupied by tenants. It does not include space in buildings that are either planned, under construction or under renovation. Flex Building: A type of building designed to be versatile, which may be used in combination with office (corporate headquarters), research and development, quasi-retail sales, and including but not limited to industrial, warehouse, and distribution uses. A typical flex building will be one or two stories with at least half of the rentable area being used as office space, have ceiling heights of 16 feet or less, and have some type of drive-in door, even though the door may be glassed in or sealed off. Full Service Rental Rate: Rental rates that include all operating expenses such as utilities, electricity, janitorial services, taxes and insurance. Gross Absorption: The total change in occupied space over a given period of time, counting space that is occupied but not space that is vacated by tenants. Gross absorption differs from leasing Activity, which is the sum of all space leased over a certain period of time. Unless otherwise noted Gross Absorption includes direct and sublease space. Growth in Inventory: The change in size of the existing square footage in a given area over a given period of time, generally due to the construction of new buildings. Industrial Building: A type of building adapted for such uses as the assemblage, processing, and/or manufacturing of products from raw materials or fabricated parts. Additional uses include warehousing, distribution, and maintenance facilities. The primary purpose of the space is for storing, producing, assembling, or distributing product. Landlord Rep: (Landlord Representative) In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the owner/landlord is referred to as the Landlord Rep. Leased Space: All the space that has a financial lease obligation. It includes all leased space, regardless of whether the space is currently occupied by a tenant. Leased space also includes space being offered for sublease. Leasing Activity: The volume of square footage that is committed to and signed under a lease obligation for a specific building or market in a given period of time. It includes direct leases, subleases and renewals of existing leases. It also includes any pre-leasing activity in planned, under construction, or under renovation buildings. Market: Geographic boundaries that serve to delineate core areas that are competitive with each other and constitute a generally accepted primary competitive set of areas. Markets are building-type specific, and are non-overlapping contiguous geographic designations having a cumulative sum that matches the boundaries of the entire Region (See also: Region). Markets can be further subdivided into Submarkets. (See also: Submarkets) Multi-Tenant: Buildings that house more than one tenant at a given time. Usually, multi-tenant buildings were designed and built to accommodate many different floor plans and designs for different 2018 CoStar Group, Inc. CoStar Industrial Statistics C

5 Dallas/Ft. Worth Year-End 2017 tenant needs. (See also: Tenancy). Net Absorption: The net change in occupied space over a given period of time. Unless otherwise noted Net Absorption includes direct and sublease space. Net Rental Rate: A rental rate that excludes certain expenses that a tenant could incur in occupying office space. Such expenses are expected to be paid directly by the tenant and may include janitorial costs, electricity, utilities, taxes, insurance and other related costs. New Space: Sometimes called first generation space, refers to space that has never been occupied and/or leased by a tenant. Occupied Space: Space that is physically occupied by a tenant. It does not include leased space that is not currently occupied by a tenant. Office Building: A type of commercial building used exclusively or primarily for office use (business), as opposed to manufacturing, warehousing, or other uses. Office buildings may sometimes have other associated uses within part of the building, i.e., retail sales, financial, or restaurant, usually on the ground floor. Owner: The company, entity, or individual that holds title on a given building or property. Planned/Proposed: The status of a building that has been announced for future development but not yet started construction. Preleased Space: The amount of space in a building that has been leased prior to its construction completion date, or certificate of occupancy date. Price/SF: Calculated by dividing the price of a building (either sales price or asking sales price) by the Rentable Building Area (RBA). Property Manager: The company and/or person responsible for the day-to-day operations of a building, such as cleaning, trash removal, etc. The property manager also makes sure that the various systems within the building, such as the elevators, HVAC, and electrical systems, are functioning properly. Quoted Rental Rate: The asking rate per square foot for a particular building or unit of space by a broker or property owner. Quoted rental rates may differ from the actual rates paid by tenants following the negotiation of all terms and conditions in a specific lease. RBA: Abbreviation for Rentable Building Area. (See also: Rentable Building Area) Region: Core areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Regions are further divided into market areas, called Markets. (See also: Markets) Relet Space: Sometimes called second generation or direct space, refers to existing space that has previously been occupied by another tenant. Rentable Building Area: (RBA) The total square footage of a building that can be occupied by, or assigned to a tenant for the purpose of determining a tenant s rental obligation. Generally RBA includes a percentage of common areas including all hallways, main lobbies, bathrooms, and telephone closets. Rental Rates: The annual costs of occupancy for a particular space quoted on a per square foot basis. Sales Price: The total dollar amount paid for a particular property at a particular point in time. Sales Volume: The sum of sales prices for a given group of buildings in a given time period. Seller: The individual, group, company, or entity that sells a particular commercial real estate asset. SF: Abbreviation for Square Feet. Single-Tenant: Buildings that are occupied, or intended to be occupied by a single tenant. (See also: Build-to-suit and Tenancy) Sublease Space: Space that has been leased by a tenant and is being offered for lease back to the market by the tenant with the lease obligation. Sublease space is sometimes referred to as sublet space. Submarkets: Specific geographic boundaries that serve to delineate a core group of buildings that are competitive with each other and constitute a generally accepted primary competitive set, or peer group. Submarkets are building type specific (office, industrial, retail, etc.), with distinct boundaries dependent on different factors relevant to each building type. Submarkets are non-overlapping, contiguous geographic designations having a cumulative sum that matches the boundaries of the Market they are located within (See also: Market). Suburban: The Suburban and Central Business District (CBD) designations refer to a particular geographic area within a metropolitan statistical area (MSA). Suburban is defined as including all office inventory not located in the CBD. (See also: CBD) Tenancy: A term used to indicate whether or not a building is occupied by multiple tenants (See also: Multi-tenant) or a single tenant. (See also: Single-tenant) Tenant Rep: Tenant Rep stands for Tenant Representative. In a typical lease transaction between an owner/landlord and tenant, the broker that represents the interests of the tenant is referred to as a Tenant Rep. Time On Market: A measure of how long a currently available space has been marketed for lease, regardless of whether it is vacant or occupied. Under Construction: Buildings in a state of construction, up until they receive their certificate of occupancy. In order for CoStar to consider a building under construction, the site must have a concrete foundation in place. Abbreviated UC. Rate: A measurement expressed as a percentage of the total amount of physically vacant space divided by the total amount of existing inventory. Under construction space generally is not included in vacancy calculations. Vacant Space: Space that is not currently occupied by a tenant, regardless of any lease obligation that may be on the space. Vacant space could be space that is either available or not available. For example, sublease space that is currently being paid for by a tenant but not occupied by that tenant, would be considered vacant space. Likewise, space that has been leased but not yet occupied because of finish work being done, would also be considered vacant space. Weighted Average Rental Rate: Rental rates that are calculated by factoring in, or weighting, the square footage associated with each particular rental rate. This has the effect of causing rental rates on larger spaces to affect the average more than that of smaller spaces. The weighted average rental rate is calculated by taking the ratio of the square footage associated with the rental rate on each individual available space to the square footage associated with rental rates on all available spaces, multiplying the rental rate by that ratio, and then adding together all the resulting numbers. Unless specifically specified otherwise, rental rate averages include both Direct and Sublet available spaces. Year Built: The year in which a building completed construction and was issued a certificate of occupancy. YTD: Abbreviation for Year-to-Date. Describes statistics that are cumulative from the beginning of a calendar year through whatever time period is being studied. D CoStar Industrial Statistics 2018 CoStar Group, Inc.

6 Overview Year-End 2017 Dallas/Ft. Worth Dallas/Ft. Worth s Decreases to 6.4% Net Absorption Positive 7,656,000 SF in the Quarter The Dallas/Ft. Worth Industrial market ended the fourth quarter 2017 with a vacancy rate of 6.4%. The vacancy rate was down over the previous quarter, with net absorption totaling positive 7,656,000 square feet in the fourth quarter. Vacant sublease space decreased in the quarter, ending the quarter at 1,740,367 square feet. Rental rates ended the fourth quarter at $5.60, an increase over the previous quarter. A total of 34 buildings delivered to the market in the quarter totaling 6,840,572 square feet, with 20,911,406 square feet still under construction at the end of the quarter. Absorption Net absorption for the overall Dallas/Ft. Worth Industrial market was positive 7,656,000 square feet in the fourth quarter That compares to positive 4,998,256 square feet in the third quarter 2017, positive 6,124,784 square feet in the second quarter 2017, and positive 4,114,549 square feet in the first quarter The Flex building market recorded net absorption of negative (64,674) square feet in the fourth quarter 2017, compared to positive 313,453 square feet in the third quarter 2017, positive 1,152,199 in the second quarter 2017, and positive 1,193,898 in the first quarter The Warehouse building market recorded net absorption of positive 7,720,674 square feet in the fourth quarter 2017 compared to positive 4,684,803 square feet in the third quarter 2017, positive 4,972,585 in the second quarter 2017, and positive 2,920,651 in the first quarter The Industrial vacancy rate in the Dallas/Ft. Worth market area decreased to 6.4% at the end of the fourth quarter The vacancy rate was 6.5% at the end of the third quarter 2017, 6.5% at the end of the second quarter 2017, and 6.7% at the end of the first quarter Flex projects reported a vacancy rate of 6.3% at the end of the fourth quarter 2017, 6.0% at the end of the third quarter 2017, 6.1% at the end of the second quarter 2017, and 6.2% at the end of the first quarter Warehouse projects reported a vacancy rate of 6.4% at the end of the fourth quarter 2017, 6.6% at the end of third quarter 2017, 6.5% at the end of the second quarter 2017, and 6.8% at the end of the first quarter Largest Lease Signings The largest lease signings occurring in 2017 included: the 1,300,000-square-foot lease signed by Kohler Co. at 9500 S Polk St in the South Dallas market; the 1,004,400-square-foot deal signed by UPS at Arlington Commerce Center - Building E in the Great SW/Arlington market; and the 920,275-squarefoot lease signed by Amazon at DalParc I-20 - Building 1 in the South Dallas market. Sublease The amount of vacant sublease space in the Dallas/Ft. Worth market decreased to 1,740,367 square feet by the end of the fourth quarter 2017, from 2,159,281 square feet at the end of the third quarter There was 1,977,509 square feet vacant at the end of the second quarter 2017 and 2,167,503 square feet at the end of the first quarter Rates by Building Type % Flex Warehouse Total Market 12% 10% Rate 8% 6% 4% 2% 0% q q q q q q q q q q q q q q q q CoStar Group, Inc. CoStar Industrial Statistics 1

7 Dallas/Ft. Worth Year-End 2017 Overview Dallas/Ft. Worth s Flex projects reported vacant sublease space of 170,741 square feet at the end of fourth quarter 2017, down from the 395,168 square feet reported at the end of the third quarter There were 458,866 square feet of sublease space vacant at the end of the second quarter 2017, and 363,094 square feet at the end of the first quarter Warehouse projects reported decreased vacant sublease space from the third quarter 2017 to the fourth quarter Sublease vacancy went from 1,764,113 square feet to 1,569,626 square feet during that time. There was 1,518,643 square feet at the end of the second quarter 2017, and 1,804,409 square feet at the end of the first quarter Rental Rates The average quoted asking rental rate for available Industrial space was $5.60 per square foot per year at the end of the fourth quarter 2017 in the Dallas/Ft. Worth market area. This represented a 6.3% increase in quoted rental rates from the end of the third quarter 2017, when rents were reported at $5.27 per square foot. The average quoted rate within the Flex sector was $9.80 per square foot at the end of the fourth quarter 2017, while Warehouse rates stood at $4.75. At the end of the third quarter 2017, Flex rates were $9.52 per square foot, and Warehouse rates were $4.50. Deliveries and Construction During the fourth quarter 2017, 34 buildings totaling 6,840,572 square feet were completed in the Dallas/Ft. Worth market area. This compares to 31 buildings totaling 5,916,675 square feet that were completed in the third quarter 2017, 38 buildings totaling 4,705,121 square feet completed in the second quarter 2017, and 11,263,737 square feet in 57 buildings completed in the first quarter There were 20,911,406 square feet of Industrial space under construction at the end of the fourth quarter U.S. Comparison Past 10 Quarters Rate 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Dallas/Ft Worth United States q Some of the notable 2017 deliveries include: SouthPort Logistics Park - Building 1, a 1,075,260-square-foot facility that delivered in first quarter 2017 and is now 0% occupied, and Arlington Commerce Center - Building E, a 1,004,400-squarefoot building that delivered in fourth quarter 2017 and is now 100% occupied. The largest projects underway at the end of fourth quarter 2017 were 9500 S Polk St, a 1,300,000-square-foot building with 100% of its space pre-leased, and Trammell Crow at 35 Eagle - Building A, a 1,089,642-square-foot facility that is 0% pre-leased. Inventory Total Industrial inventory in the Dallas/Ft. Worth market area amounted to 878,665,205 square feet in 21,243 buildings as of the end of the fourth quarter The Flex sector consisted of 132,473,569 square feet in 6,946 projects. The Warehouse sector consisted of 746,191,636 square feet in 14,297 buildings. Within the Industrial market there were 3,340 owner-occupied buildings accounting for 220,550,330 square feet of Industrial space. Sales Activity Tallying industrial building sales of 15,000 square feet or larger, Dallas/Ft Worth industrial sales figures fell during the third quarter 2017 in terms of dollar volume compared to the second quarter of In the third quarter, 16 industrial transactions closed with a total volume of $59,434,740. The 16 buildings totaled 810,207 square feet and the average price per square foot equated to $73.36 per square foot. That compares to 24 transactions totaling $264,130,187 in the second quarter. The total square footage was 4,060,725 for an average price per square foot of $ Total year-to-date industrial building sales activity in 2017 is up compared to the previous year. In the first nine months of 2017, the market saw 72 industrial sales transactions with a total volume of $560,016,409. The price per square foot has averaged $61.40 this year. In the first nine months of 2016, the market posted 38 transactions with a total volume of $325,533,189. The price per square foot averaged $ Cap rates have been lower in 2017, averaging 7.97%, compared to the first nine months of last year when they averaged 8.60%. One of the largest transactions that has occurred within the last four quarters in the Dallas/Ft Worth market is the sale of 2305 W Marshall Drive in Grand Prairie. This 667,635-squarefoot industrial building sold for $52,000,000, or $77.89 per square foot. The property sold on 1/25/2017. Report compiled by William Trentzsch, CoStar Senior Research Manager, and Tyler Grote, CoStar Research Manager. 2 CoStar Industrial Statistics 2018 CoStar Group, Inc.

8 Markets Year-End 2017 Dallas/Ft. Worth CoStar Submarket Clusters & Submarkets In analyzing metropolitan areas, CoStar has developed geographic designations to help group properties together, called Markets, Submarket Clusters and Submarkets. Markets are the equivalent of metropolitan areas, or areas containing a large population nucleus, that together with adjacent communities have a high degree of economic and social integration. Markets are then divided into Submarket Clusters, which are core areas within a metropolitan area that are known to be competitive with each other in terms of attracting and keeping tenants. Markets are then further subdivided into smaller units called Submarkets, which serve to delineate a core group of buildings that are competitive with each other and constitute a generally accepted competitive set, or peer group. Submarket Clusters Submarkets DFW Airport Ind E DFW Air/Las Colinas Ind W DFW Air/Grapevine Ind East Dallas Ind Central East Dallas Ind East Dallas/Mesquite Ind Forney/Terrll/Kauf Cy Ind Outlying Kaufman Cnty Ind Great SW/Arlington Ind Arlington Ind Lower Great Southwest Ind Upper Great Southwest Ind North Ft Worth Ind Meacham Fld/Fossil Cr Ind NE Tarrant/Alliance Ind Parker County Ind West Tarrant Ind Wise County Ind Northeast Dallas Ind Allen/McKinney Ind Delta County Ind Hunt County Ind NE Dallas/Garland Ind Outlying Collin Cnty Ind Plano Ind Richardson Ind Rockwall Ind Northwest Dallas Ind Denton Ind Lewisville Ind Metropolitan/Addison Ind N Stemmons/Valwood Ind South Dallas Ind Outlying Ellis Cnty Ind Redbird Airport Ind SE Dallas/I-45 Ind SW Dallas/US 67 Ind South Ft Worth Ind East Ft Worth Ind Hood County Ind Johnson County Ind Mansfield Ind N Central Ft Worth Ind S Cen.Tarrant Cnty Ind S Central Ft Worth Ind Southwest Tarrant Ind South Stemmons Ind East Brookhollow Ind East Hines North Ind Eastern Lonestar/Tpke Ind North Trinity Ind West Brookhollow Ind West Hines North Ind Western Lonestar/Tpke Ind 2018 CoStar Group, Inc. CoStar Industrial Statistics 3

9 Dallas/Ft. Worth Year-End 2017 Inventory & development Historical Deliveries Deliveries Average Delivered SF Millions of SF * Future deliveries based on current under construction buildings. Construction Activity Markets Ranked by Under Construction RBA Under Construction Inventory Average Bldg Size Market # Bldgs Total RBA Preleased SF Preleased % All Existing U/C South Dallas Ind 10 7,351,835 3,360, % 57, ,183 North Ft Worth Ind 15 3,665, , % 60, ,355 Great SW/Arlington Ind 7 3,227,650 2,197, % 61, ,093 DFW Airport Ind 8 2,174,702 1,039, % 81, ,838 Northwest Dallas Ind 13 1,319, , % 53, ,498 Northeast Dallas Ind 12 1,246, , % 38, ,887 East Dallas Ind 1 877, , % 25, ,230 South Stemmons Ind 6 714, , % 28, ,155 South Ft Worth Ind 4 333,611 8, % 26,618 83,403 Totals 76 20,911,406 9,153, % 41, ,150 Recent Deliveries Leased & Un-Leased SF in Deliveries Since 2013 Future Deliveries Preleased & Un-Leased SF in Properties Scheduled to Deliver 35.0 Leased Un-Leased 9,000 Preleased Un-Leased ,000 Millions of SF Thousands of SF 7,000 6,000 5,000 4,000 3,000 2, , q q 4 CoStar Industrial Statistics 2018 CoStar Group, Inc.

10 Inventory & development Year-End 2017 Dallas/Ft. Worth Historical Construction Starts & Deliveries Square Footage Per Quarter Starting and Completing Construction 12.0 Construction Starts Deliveries 11.3 Millions of SF q q q q Recent Deliveries by Project Size Breakdown of Year-to-Date Development Based on RBA of Project Building Size # Bldgs RBA SF Leased % Leased Avg Rate Single-Tenant Multi-Tenant < 50,000 SF , , % $ , ,580 50,000 SF - 99,999 SF 16 1,164, , % $ , , ,000 SF - 249,999 SF 30 4,299,853 2,387, % $ ,000 3,530, ,000 SF - 499,999 SF 25 9,097,116 4,137, % $4.02 1,856,626 7,240,490 >= 500,000 SF 18 13,563,841 7,729, % $3.89 1,139,448 12,424,393 Recent Development by Tenancy Existing Inventory Comparison Based on RBA Developed for Single & Multi-Tenant Use Based on Total RBA 2017 Deliveries Currently Under Construction By Building Type By Tenancy Type 14% 19% 85% 15% 50% 50% 86% 81% Multi Single Multi Single Flex Warehouse Multi Single 2018 CoStar Group, Inc. CoStar Industrial Statistics 5

11 Dallas/Ft. Worth Year-End 2017 Inventory & development 6 CoStar Industrial Statistics 2018 CoStar Group, Inc.

12 Inventory & development Year-End 2017 Dallas/Ft. Worth 2018 CoStar Group, Inc. CoStar Industrial Statistics 7

13 Dallas/Ft. Worth Year-End 2017 Figures at a Glance Flex Market Statistics Year-End 2017 Existing Inventory YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates DFW Airport Ind 340 9,102, , , % 9,709 6,600 0 $9.66 East Dallas Ind 653 8,519, , , % (31,744) 0 0 $9.16 Great SW/Arlington Ind ,273, , , % 354,085 11,000 0 $9.36 North Ft Worth Ind 297 5,771,411 67,487 70, % 727, ,000 62,000 $8.98 Northeast Dallas Ind 1,309 31,525,978 2,562,346 2,598, % 1,191,301 1,944, ,000 $9.66 Northwest Dallas Ind ,122,331 1,480,859 1,504, % 402, , ,000 $10.12 South Dallas Ind 381 4,439,850 85,204 85, % (8,163) 0 0 $7.75 South Ft Worth Ind ,513, , , % (35,216) 18,600 0 $8.14 South Stemmons Ind 1,802 28,204,112 1,115,919 1,140, % (15,696) 24,800 16,000 $11.15 Totals 6, ,473,569 8,149,712 8,320, % 2,594,876 2,616, ,000 $9.80 Warehouse Market Statistics Year-End 2017 Existing Inventory YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates DFW Airport Ind ,852,939 3,149,584 3,314, % 1,653,707 1,976,219 2,174,702 $4.69 East Dallas Ind 1,321 42,180,777 1,358,976 1,368, % 848, , ,230 $4.50 Great SW/Arlington Ind 1, ,132,733 9,094,294 9,274, % 3,544,509 7,001,315 3,227,650 $4.40 North Ft Worth Ind 1,241 86,865,938 4,453,190 4,473, % 5,721,743 3,713,327 3,603,330 $5.33 Northeast Dallas Ind 1,764 85,532,412 3,983,259 4,645, % 1,520,349 2,098, ,640 $4.94 Northwest Dallas Ind 1,339 89,887,173 3,269,939 3,391, % 3,498,388 2,245, ,475 $5.14 South Dallas Ind 1,300 92,012,603 9,563,743 9,811, % 4,460,028 6,933,030 7,351,835 $3.67 South Ft Worth Ind 2,516 78,050,691 4,165,618 4,223, % (800,962) 1,046, ,611 $5.63 South Stemmons Ind 2, ,676,370 7,248,158 7,352, % (147,834) 742, ,933 $5.17 Totals 14, ,191,636 46,286,761 47,856, % 20,298,713 26,109,129 20,079,406 $4.75 Total Industrial Market Statistics Year-End 2017 Existing Inventory YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates DFW Airport Ind ,955,668 3,971,674 4,152, % 1,663,416 1,982,819 2,174,702 $5.83 East Dallas Ind 1,974 50,700,626 2,280,647 2,290, % 817, , ,230 $4.95 Great SW/Arlington Ind 1, ,406,321 9,703,435 9,891, % 3,898,594 7,012,315 3,227,650 $4.99 North Ft Worth Ind 1,538 92,637,349 4,520,677 4,544, % 6,449,390 3,975,327 3,665,330 $5.53 Northeast Dallas Ind 3, ,058,390 6,545,605 7,244, % 2,711,650 4,043,311 1,246,640 $6.48 Northwest Dallas Ind 2, ,009,504 4,750,798 4,896, % 3,901,341 2,595,235 1,319,475 $6.37 South Dallas Ind 1,681 96,452,453 9,648,947 9,896, % 4,451,865 6,933,030 7,351,835 $3.74 South Ft Worth Ind 3,440 91,564,412 4,650,613 4,768, % (836,178) 1,064, ,611 $6.04 South Stemmons Ind 4, ,880,482 8,364,077 8,492, % (163,530) 767, ,933 $6.27 Totals 21, ,665,205 54,436,473 56,176, % 22,893,589 28,726,105 20,911,406 $ CoStar Industrial Statistics 2018 CoStar Group, Inc.

14 Figures at a Glance Year-End 2017 Dallas/Ft. Worth Flex Submarket Statistics Year-End 2017 Existing Inventory YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Allen/McKinney Ind 88 2,414, , , % 66,428 68, ,000 $11.84 Arlington Ind 163 2,945,018 75,495 78, % 272,080 11,000 0 $11.11 Central East Dallas ,054, , , % (53,682) 0 0 $11.53 Delta County Ind % $0.00 Denton Ind 58 1,918,456 60,300 60, % 16, ,000 $7.38 E DFW Air/Las Colina ,511, , , % (36,880) 0 0 $9.95 East Brookhollow Ind 120 1,921, , , % 43, $14.84 East Dallas/Mesquite ,907, , , % 36, $11.07 East Ft Worth Ind 287 4,820, , , % 5, $7.27 East Hines North Ind 395 6,644, , , % (24,600) 0 0 $8.15 Eastern Lonestar/Tpk ,244, , , % (68,123) 0 16,000 $6.28 Forney/Terrll/Kauf C ,745 22,838 22, % (14,138) 0 0 $4.74 Hood County Ind ,303 8,953 8, % 27, $6.74 Hunt County Ind , % 14,250 14,250 0 $12.35 Johnson County Ind ,359 10,780 10, % $11.12 Lewisville Ind 137 3,201, , , % 360, , ,000 $12.07 Lower Great Southwes ,204, , , % 35, $8.43 Mansfield Ind ,700 8,176 8, % (4,796) 0 0 $13.84 Meacham Fld/Fossil C ,431,474 23,584 23, % 244,477 12,000 0 $8.79 Metropolitan/Addison ,819, , , % 126, $11.01 N Central Ft Worth I ,954,354 29,089 29, % 45, $9.08 N Stemmons/Valwood I ,182, , , % (101,206) 19,281 0 $8.21 NE Dallas/Garland In ,275, , , % 903,014 1,000,000 0 $6.89 NE Tarrant/Alliance. 98 2,535,687 9,310 9, % 472, ,000 62,000 $9.40 North Trinity Ind 522 6,467, , , % (4,640) 0 0 $15.08 Outlying Collin Cnty ,191 65,300 65, % 12,825 65,225 80,000 $11.90 Outlying Ellis Cnty , % 8, $9.00 Outlying Kaufman Cnt. 6 45, % $0.00 Parker County Ind ,118 10,080 12, % (2,769) 0 0 $9.83 Plano Ind 223 7,551, , , % 111, ,460 0 $11.84 Redbird Airport Ind ,295 11,199 11, % (1,499) 0 0 $7.99 Richardson Ind 299 9,453,158 1,041,653 1,041, % 87, ,760 0 $9.44 Rockwall Ind ,980 20,326 20, % (4,426) 0 0 $10.54 S Cen.Tarrant Cnty I. 80 1,816,790 55,794 66, % 28,979 18,600 0 $7.05 S Central Ft Worth I ,389,996 62,633 62, % 80, $9.04 SE Dallas/I-45 Ind 98 1,367,022 36,194 36, % (23,230) 0 0 $6.80 Southwest Tarrant In , , , % (219,376) 0 0 $8.46 SW Dallas/US 67 Ind 173 1,828,790 37,811 37, % 8, $7.93 Upper Great Southwes ,124, , , % 46, $9.00 W DFW Air/Grapevine ,591, , , % 46,589 6,600 0 $8.63 West Brookhollow Ind 381 7,850, , , % 5,861 24,800 0 $8.06 West Hines North Ind 144 2,374,949 69,730 69, % 22, $9.08 West Tarrant Ind ,275 22,013 22, % (7,346) 0 0 $15.79 Western Lonestar/Tpk , % 10, $8.65 Wise County Ind 11 84,857 2,500 2, % 20, $4.65 Totals 6, ,473,569 8,149,712 8,320, % 2,594,876 2,616, ,000 $ CoStar Group, Inc. CoStar Industrial Statistics 9

15 Dallas/Ft. Worth Year-End 2017 Figures at a Glance Warehouse Submarket Statistics Year-End 2017 Existing Inventory YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Allen/McKinney Ind 195 9,297, , , % 72, , ,270 $6.17 Arlington Ind ,678,316 2,218,496 2,254, % 2,018,658 2,778, ,132 $4.33 Central East Dallas ,052, , , % 1, $5.12 Delta County Ind 4 113, % $0.00 Denton Ind ,540, , , % 855, , ,969 $6.11 E DFW Air/Las Colina ,969,527 2,445,180 2,605, % 1,201,489 1,629,177 1,527,906 $4.39 East Brookhollow Ind 178 7,352,596 12,760 12, % (7,790) 0 0 $8.24 East Dallas/Mesquite ,260, , , % 648, , ,230 $5.13 East Ft Worth Ind ,791,178 1,337,076 1,388, % 44, ,800 0 $5.25 East Hines North Ind ,479, , , % 96, $5.09 Eastern Lonestar/Tpk ,389,731 1,415,893 1,473, % (67,146) 518,241 0 $3.70 Forney/Terrll/Kauf C ,365, , , % 210, $4.03 Hood County Ind ,629 59,084 59, % (7,680) 27,000 0 $6.03 Hunt County Ind 138 7,110, , , % (206,936) 0 0 $5.48 Johnson County Ind 408 9,957, , , % 358, ,939 8,000 $6.40 Lewisville Ind ,738, , , % 1,640, , ,606 $5.60 Lower Great Southwes ,818, , , % 482,997 70,000 1,000,000 $4.50 Mansfield Ind 154 4,720, , , % 68, $4.31 Meacham Fld/Fossil C ,876,661 1,619,453 1,630, % 2,081,113 2,043,711 1,053,485 $5.57 Metropolitan/Addison ,721, , , % (76,726) 0 0 $5.52 N Central Ft Worth I ,576, , , % 115, $6.14 N Stemmons/Valwood I ,886,414 1,571,616 1,659, % 1,078, , ,900 $4.58 NE Dallas/Garland In ,603,649 2,254,397 2,851, % 862,867 1,225, ,400 $4.12 NE Tarrant/Alliance ,001,609 2,335,075 2,335, % 3,619,533 1,602,016 2,389,845 $4.75 North Trinity Ind 430 7,256, , , % (63,956) 0 0 $8.07 Outlying Collin Cnty. 63 1,009,624 25,100 25, % 170, ,000 0 $10.14 Outlying Ellis Cnty ,222,478 5, , % 166, $4.02 Outlying Kaufman Cnt ,644 51,050 51, % (11,429) 0 0 $3.33 Parker County Ind 216 3,152, , , % (16,701) 6,000 20,000 $7.21 Plano Ind ,144, , , % 243, ,750 9,970 $8.05 Redbird Airport Ind ,239, , , % 1,051, $3.55 Richardson Ind 111 9,155, , , % (5,519) 0 0 $5.74 Rockwall Ind 111 3,097,039 36,250 36, % 383, ,500 0 $6.73 S Cen.Tarrant Cnty I ,709,257 2,027,263 2,033, % (1,288,636) 504, ,061 $5.01 S Central Ft Worth I ,602, , , % (53,474) 0 0 $4.99 SE Dallas/I-45 Ind ,057,052 6,337,705 6,343, % 3,140,840 6,876,030 5,103,455 $3.70 Southwest Tarrant In ,848,021 79,751 79, % (39,075) 28,500 17,550 $8.45 SW Dallas/US 67 Ind ,493,198 2,830,396 2,830, % 101,240 57,000 2,248,380 $3.52 Upper Great Southwes ,636,051 6,152,106 6,289, % 1,042,854 4,153,182 1,326,518 $4.41 W DFW Air/Grapevine ,883, , , % 452, , ,796 $7.06 West Brookhollow Ind 1,050 34,856, , , % (495,443) 0 0 $4.76 West Hines North Ind 222 5,287, , , % 110, $5.05 West Tarrant Ind 108 4,183, , , % (29,003) 35,350 90,000 $5.56 Western Lonestar/Tpk ,052,450 4,591,149 4,591, % 279, , ,933 $4.49 Wise County Ind 110 1,651, , , % 66,801 26,250 50,000 $6.06 Totals 14, ,191,636 46,286,761 47,856, % 20,298,713 26,109,129 20,079,406 $ CoStar Industrial Statistics 2018 CoStar Group, Inc.

16 Figures at a Glance Year-End 2017 Dallas/Ft. Worth Total Industrial Submarket Statistics Year-End 2017 Existing Inventory YTD Net YTD Under Quoted Market # Blds Total RBA Direct SF Total SF Vac % Absorption Deliveries Const SF Rates Allen/McKinney Ind ,712, , , % 139, , ,270 $8.09 Arlington Ind ,623,334 2,293,991 2,332, % 2,290,738 2,789, ,132 $4.93 Central East Dallas ,106, , , % (52,525) 0 0 $6.11 Delta County Ind 4 113, % $0.00 Denton Ind ,459, , , % 872, , ,969 $6.22 E DFW Air/Las Colina ,480,961 3,128,293 3,300, % 1,164,609 1,629,177 1,527,906 $5.55 East Brookhollow Ind 298 9,274, , , % 35, $10.05 East Dallas/Mesquite ,168,052 1,514,030 1,514, % 685, , ,230 $5.76 East Ft Worth Ind 1,000 25,611,341 1,472,670 1,524, % 50, ,800 0 $5.51 East Hines North Ind ,124, , , % 72, $6.03 Eastern Lonestar/Tpk ,633,934 1,516,016 1,573, % (135,269) 518,241 16,000 $3.84 Forney/Terrll/Kauf C ,877, , , % 195, $4.09 Hood County Ind 125 1,028,932 68,037 68, % 19,442 27,000 0 $6.21 Hunt County Ind 161 7,321, , , % (192,686) 14,250 0 $6.86 Johnson County Ind ,520, , , % 359, ,939 8,000 $6.50 Lewisville Ind ,940,420 1,018,428 1,023, % 2,001, , ,606 $7.32 Lower Great Southwes ,022, , , % 518,552 70,000 1,000,000 $5.15 Mansfield Ind 182 5,565, , , % 63, $4.64 Meacham Fld/Fossil C ,308,135 1,643,037 1,654, % 2,325,590 2,055,711 1,053,485 $5.71 Metropolitan/Addison ,541,215 1,080,190 1,080, % 50, $8.19 N Central Ft Worth I ,531, , , % 161, $6.36 N Stemmons/Valwood I ,068,644 2,223,638 2,329, % 977, , ,900 $5.19 NE Dallas/Garland In. 1,471 52,878,731 2,727,043 3,334, % 1,765,881 2,225, ,400 $4.51 NE Tarrant/Alliance ,537,296 2,344,385 2,344, % 4,092,384 1,852,016 2,451,845 $4.91 North Trinity Ind ,724, , , % (68,596) 0 0 $10.61 Outlying Collin Cnty. 79 1,167,815 90,400 90, % 182, ,225 80,000 $11.11 Outlying Ellis Cnty ,655,221 5, , % 174, $4.60 Outlying Kaufman Cnt ,349 51,050 51, % (11,429) 0 0 $3.33 Parker County Ind 248 3,457, , , % (19,470) 6,000 20,000 $7.40 Plano Ind ,695,740 1,566,879 1,639, % 354, ,210 9,970 $9.95 Redbird Airport Ind ,051, , , % 1,050, $3.61 Richardson Ind ,608,614 1,158,941 1,168, % 82, ,760 0 $8.71 Rockwall Ind 147 3,560,019 56,576 56, % 378, ,500 0 $7.62 S Cen.Tarrant Cnty I ,526,047 2,083,057 2,099, % (1,259,657) 523, ,061 $5.20 S Central Ft Worth I ,992, , , % 27, $5.72 SE Dallas/I-45 Ind ,424,074 6,373,899 6,379, % 3,117,610 6,876,030 5,103,455 $3.72 Southwest Tarrant In ,788, , , % (258,451) 28,500 17,550 $8.46 SW Dallas/US 67 Ind ,321,988 2,868,207 2,868, % 109,604 57,000 2,248,380 $3.78 Upper Great Southwes ,760,430 6,531,187 6,673, % 1,089,304 4,153,182 1,326,518 $4.99 W DFW Air/Grapevine ,474, , , % 498, , ,796 $7.63 West Brookhollow Ind 1,431 42,707, , , % (489,582) 24,800 0 $5.16 West Hines North Ind 366 7,662, , , % 132, $6.17 West Tarrant Ind 139 4,598, , , % (36,349) 35,350 90,000 $6.59 Western Lonestar/Tpk ,752,745 4,591,149 4,591, % 290, , ,933 $4.54 Wise County Ind 121 1,736, , , % 87,235 26,250 50,000 $5.78 Totals 21, ,665,205 54,436,473 56,176, % 22,893,589 28,726,105 20,911,406 $ CoStar Group, Inc. CoStar Industrial Statistics 11

17 Dallas/Ft. Worth Year-End 2017 Figures at a Glance 12 CoStar Industrial Statistics 2018 CoStar Group, Inc.

18 Leasing Activity Year-End 2017 Dallas/Ft. Worth Historical Rental Rates Based on Quoted Rental Rates $12.00 Flex Warehouse Total Market $10.00 Dollars/SF/Year $8.00 $6.00 $4.00 $2.00 $ q q q q q q q q 20174q by Available Space Type by Building Type Percent of All Vacant Space in Direct vs. Sublet Percent of All Vacant Space by Building Type Dallas/Ft Worth United States Dallas/Ft Worth United States 3% 4% 15% 14% 85% 86% 97% 96% Direct Sublet Direct Sublet Flex Warehouse Flex Warehouse U.S. Rental Rate Comparison Based on Average Quoted Rental Rates Future Space Available Space Scheduled to be Available for Occupancy* $7.00 Dallas/Ft Worth United States $ Dollars/SF/Year $5.00 $4.00 $3.00 $2.00 Millions $1.00 $ q q q q * Includes Under Construction Space 2018 CoStar Group, Inc. CoStar Industrial Statistics 13

19 Dallas/Ft. Worth Year-End 2017 Leasing Activity Select Top Industrial Leases Based on Leased Square Footage For Deals Signed in 2017 Building Submarket SF Qtr Tenant Name Tenant Rep Company Landlord Rep Company S Polk St SW Dallas/US 67 Ind 1,300,000 3rd Kohler Co. N/A CBRE 2 Arlington Commerce Center - Building E Arlington Ind 1,004,400 1st UPS N/A Exeter Property Group 3 DalParc I-20 - Building 1 SE Dallas/I-45 Ind 920,275 3rd Amazon N/A CBRE 4 Wayfair SE Dallas/I-45 Ind 874,566 3rd Wayfair N/A N/A 5 Wildlife 6 Upper Great Southwest Ind 703,040 3rd Haier N/A Crow Holdings Industrial 6 Sandy Lake 121 Distribution Center E DFW Air/Las Colinas Ind 604,800 3rd Amazon.com CBRE Cushman & Wakeeld of Texas, Inc Gateway Pky NE Tarrant/Alliance Ind 603,050 4th N/A N/A CBRE 8 Lasko Products Inc* Meacham Fld/Fossil Cr Ind 505,000 1st Lasko Products, Inc. N/A N/A 9 Mercantile Center Meacham Fld/Fossil Cr Ind 492,322 2nd S&S Activewear Cushman & Wakeeld of Texas, Inc.; Lee & Associates 10 Commerce 20 - Building 2 SE Dallas/I-45 Ind 488,780 2nd N/A N/A CBRE 11 Millwork Distribution Center* SW Dallas/US 67 Ind 476,341 2nd DW Distribution Inc. N/A N/A 12 DFW Trade Center II* E DFW Air/Las Colinas Ind 401,572 1st KidKraft N/A CBRE 13 Liberty Park GSW South - Building 2 Arlington Ind 365,000 2nd Fedex N/A Liberty Property Trust 14 Alliance Westport 19 NE Tarrant/Alliance Ind 360,000 2nd N/A N/A Hillwood Properties 15 FedEx Ground Distribution Facility East Dallas/Mesquite Ind 351,874 2nd FedEx N/A N/A 16 Northport 35 Business Center - Building A NE Tarrant/Alliance Ind 349,425 1st Allen Distribution N/A Stream Realty Partners, LP 17 Southpointe 20/35 - Building 1 SE Dallas/I-45 Ind 343,421 2nd N/A CBRE Holt Lunsford Commercial, Inc. 18 Prologis Freeport Corporate Center 3* E DFW Air/Las Colinas Ind 335,480 1st KGP Logistics Lee & Associates Prologis 19 South Central Industrial SE Dallas/I-45 Ind 305,000 4th N/A N/A CBRE South Fwy S Cen.Tarrant Cnty Ind 300,890 4th N/A N/A TCRG Properties, LLC. 21 Ridge Railhead - Building 1 Meacham Fld/Fossil Cr Ind 299,000 1st Dematic N/A Lee & Associates Meacham Blvd* Meacham Fld/Fossil Cr Ind 295,000 1st Lasko Products N/A N/A 23 Prologis Northgate 18* NE Dallas/Garland Ind 267,690 2nd Speed FC N/A CBRE 24 35/20 Crossroads Distribution Center S Cen.Tarrant Cnty Ind 264,125 2nd N/A N/A Sealy & Company; Holt Lunsford Comm 25 Point West 400 E DFW Air/Las Colinas Ind 263,625 3rd XPO Logistics N/A Duke Realty Corporation 26 Logistics Pointe Distribution Ctr - Building NE Dallas/Garland Ind 260,959 2nd The Kraft Heinz Company CBRE CBRE 27 Liberty Park GSW North Building 2 Upper Great Southwest Ind 225,889 1st Geodis Logistics LLC CBRE JLL 28 Park 20/35 - Building 7 SE Dallas/I-45 Ind 211,948 1st Mars Pet Care N/A CBRE 29 Alliance Airport NE Tarrant/Alliance Ind 209,081 1st Robinson Aerospace N/A CBRE 30 Riverbend West Distribution Center East Ft Worth Ind 192,350 2nd Ecolab Jackson Cooksey Holt Lunsford Commercial, Inc. 31 Great Southwest Distribution Center - Lower Great Southwest Ind 179,875 3rd Biagi Brothers N/A Prologis W Kingsley Rd NE Dallas/Garland Ind 168,657 4th Hayes Retail N/A JLL 33 DFW Distribution Center* E DFW Air/Las Colinas Ind 167,820 1st BFS Services, Inc. Lee & Associates Transpacic Development Company 34 DCT Waters Ridge Lewisville Ind 165,705 3rd The Hillman Group, Inc. N/A Lee & Associates 35 Blue Linx* Meacham Fld/Fossil Cr Ind 161,911 1st Blue Linx N/A N/A 36 CentrePort Upper Great Southwest Ind 159,068 4th Image MicroSystems Stream Realty Partners, LP CBRE 37 Lasko Products, Inc.* Meacham Fld/Fossil Cr Ind 152,052 1st Lasko Products N/A N/A 38 CentrePort 5 Upper Great Southwest Ind 148,357 1st Suddath N/A CBRE 39 GSW Distribution Center 20 Lower Great Southwest Ind 147,645 1st PetMate Spartan Partners Inc Lee & Associates 40 Patriot Drive II* E DFW Air/Las Colinas Ind 140,000 1st CEVA Logistics N/A Stream Realty Partners, LP * Renewal 14 CoStar Industrial Statistics 2018 CoStar Group, Inc.

20 Sales Activity Year-End 2017 Dallas/Ft. Worth The Optimist Sales Index Average of Two Highest Price/SF's and Two Lowest Cap Rates Per Quarter 11.0% Cap Rate Price/SF $ % 9.0% $240 Cap Rate Percentage 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% $190 $140 $90 Dollars/SF 1.0% q q q $40 Source: CoStar COMPS Sales Volume & Price Sales Analysis by Building Size Based on Industrial Building Sales of 15,000 SF and Larger Based on Industrial Bldg Sales From Oct Sept $350 Sales Volume Price/SF $90 Bldg Size # RBA $ Volume Price/SF Cap Rate Millions of Sales Volume Dollars $300 $250 $200 $150 $100 $80 $70 $60 $50 $40 $30 $20 Price/SF < 25,000 SF 25K-99K SF 100K-249K SF ,307 $56,549,308 $ % 37 1,698,510 $73,682,551 $ % 13 1,910,829 $123,800,103 $ % $50 $10 $ q q q q $0 >250K SF 17 9,942,526 $640,563,360 $ % Source: CoStar COMPS Source: CoStar COMPS U.S. Price/SF Comparison Based on Industrial Building Sales of 15,000 SF and Larger U.S. Cap Rate Comparison Based on Industrial Building Sales of 15,000 SF and Larger $90 Dallas/Ft Worth US 11.0% Dallas/Ft Worth US 10.0% $80 9.0% $70 $60 $50 Cap Rate Percentage 8.0% 7.0% 6.0% 5.0% 4.0% $40 3.0% 2.0% $30 1.0% q q q q q q q q Source: CoStar COMPS Source: CoStar COMPS 2018 CoStar Group, Inc. CoStar Industrial Statistics 15

21 16 CoStar Industrial Statistics 2018 CoStar Group, Inc. Dallas/Ft. Worth Year-End 2017 Sales Activity