The Deal Sheet
DFW industrial vacancy rates are at the lowest (7.1%) since 2001. Our local market led the nation in absorption in 2013 with 18M SF (95% absorption of warehouse, large bulk, and manufacturing). That leads to some big opportunities in the next 12 to 18 months, too, with a need for flex space. (Ever thought about renting out your garage?)
That was all part of HFF's Jud Clements (left, with Champion's Steve Modory) inside info at the Richardson Chamber of Commerce's broker-developer luncheon on Thursday at Campbell Commons at 1201 E. Campbell Rd in Richardson. (Peloton has space to lease there.) Jud says industrial rental rates locally are at the highest level since CoStar started tracking, too. (Get out your record books and your erasers, folks.) HFF is tracking active developments at 10.8M SF under construction now.
KDC's Bill Guthrey (left, with Wicker & Associates' Jim Judge) tells us KDC still has 60 acres available at its 185-acre CityLine project, which now includes 2M SF of office space for State Farm under construction. KDC is also tackling another State Farm project in Atlanta. Plus, Bill says, KDC has three buildings in Richardson (400k SF) of existing space ready to lease. Jim says typically land prices fall during a downturn, but not this time. There hasn't been a rush of investors snapping up land unless there was a portfolio being sold by a bank. (Jim clearly missed the memo about it being shades of magenta tie day.)
