Absorption ascends: strong market results in demand, project deliveries

Transcription

1 Dallas / Fort Worth Retail, Q2 217 Absorption ascends: strong market results in demand, project deliveries Occupancy 94.6% 8,28,598 SF Completions 1,68,365 SF Net Absorption 1,56,436 SF Figure 1: Net Absorption and Market Occupancy Net Absorption (MSF) *Arrows indicate trend from previous quarter. Occupancy Rate (%) Source: (1) CBRE Research, Q Q1 Q2 Q3 Q4 Total Annual Net Absorption Occupancy Rate Source: CBRE Research, Q OCCUPANCY HITS NEW ALL-TIME HIGH; REACHING 94.6% Within Dallas/Fort Worth s tightening retail market, strong net absorption and deliveries pushed occupancy rates to new highs. The prevalence of steadying rent and long-term lease signings ensure space will remain filled, and availability taken off the market quickly. CONSTRUCTION PIPELINE STABILIZES AS MULTIPLE DELIVERIES COME ONLINE IN Q2 217 A 182,-sq.- ft. big box grocer coming online in Anna, TX, Costco opening their doors to customers off of Route 75 in Dallas, and a new Kroger off Basswood Blvd. in Fort Worth are just a few of the new projects to come online in DFW in the second quarter of 217. ABSORPTION AND COMPLETIONS INCREASE DRAMATICALLY DUE TO A FAST-PACED Q2 217 Grocer openings, big box absorption, and healthy retail demand in North Texas all contributed to a busy end to the first half of the year. As the region gains economic strength, it is expected that development activity will forge ahead. PLANO S URBAN VILLAGE DEVELOPMENT OPENS TO GREAT FANFARE On June 2, Plano s Legacy West celebrated its grand opening with food, live music, and sales. Within the 36, sq. ft. project are familiar names such as Tesla, Shake Shack, Coach, Taverna, and Fabletic s first Texas location. A 55, sq. ft. food hall is scheduled to open later this fall. Q2 217 CBRE Research 217 CBRE, Inc. 1

2 Figure 2: Market Snapshot Q2 215 Q3 215 Q4 215 Q1 216 Q2 216 Q3 216 Q4 216 Q1 217 Q2 217 CENTRAL DALLAS Absorption (Net, SF) 16,469 49,29 22,115 22,856 3,356 17,8 282,632 8,458 (53,3) Avg. Asking Rent (Annual, Net, $/SF) Delivered Construction (SF) 14,63 53, - 37,749-17,8 63, - - Occupancy Rate (%) EAST DALLAS OUTLYING Absorption (Net, SF) 79,48 5,492 1,726 4,655 16,221 (4,185) (29,28) 42,356 54,36 Avg. Asking Rent (Annual, Net, $/SF) Delivered Construction (SF) 62, ,46 - Occupancy Rate (%) FAR NORTH DALLAS Absorption (Net, SF) 256,77 349,75 237, , , , ,844 19,57 28,463 Avg. Asking Rent (Annual, Net, $/SF) Delivered Construction (SF) 64,133 11,715 17, , , ,284 25, 16, , Occupancy Rate (%) NEAR NORTH DALLAS Absorption (Net, SF) 78,111 6, ,656 8,349 (54,26) 316, ,58 64,122 21,362 Avg. Asking Rent (Annual, Net, $/SF) Delivered Construction (SF) 45, 16, 17, ,964 58, 2,431 22, Occupancy Rate (%) NORTH CENTRAL DALLAS Absorption (Net, SF) 869, ,778 21,739 18, , ,54 256,96 62, ,587 Avg. Asking Rent (Annual, Net, $/SF) Delivered Construction (SF) 58, 113,78 7,98 11, ,54 253, ,563 86,365 Occupancy Rate (%) SOUTHEAST DALLAS Absorption (Net, SF) 32,795 28,563 2,52 39,748 58,787 (24,33) 34,759 (61,249) 164,121 Avg. Asking Rent (Annual, Net, $/SF) Delivered Construction (SF) , ,84 - Occupancy Rate (%) SOUTHWEST DALLAS Absorption (Net, SF) 6,844 (14,523) 91,8 74,56 51, , ,969 21,919 54,983 Avg. Asking Rent (Annual, Net, $/SF) Delivered Construction (SF) , Occupancy Rate (%) WEST DALLAS Absorption (Net, SF) 25,561 88,16 71,428 53,14 33,3 16, ,84 (79,96) 25,684 Avg. Asking Rent (Annual, Net, $/SF) Delivered Construction (SF) 184,534 31, 41, , 1,39 - Occupancy Rate (%) CENTRAL FORT WORTH Absorption (Net, SF) 75,63 72, ,329 72, ,341 33, ,737 (47,615) 161,418 Avg. Asking Rent (Annual, Net, $/SF) Delivered Construction (SF) - 35,336 52,676 64,776-33, ,9-118, Occupancy Rate (%) MID-CITIES Absorption (Net, SF) 8, , , ,4 21, , , ,754 99,18 Avg. Asking Rent (Annual, Net, $/SF) Delivered Construction (SF) 27,5 475,782 38,465 29,496 84, 196,458 21, 69, - Occupancy Rate (%) SUBURBAN FORT WORTH Absorption (Net, SF) 173, , , ,731 28,752 28, ,415 91,81 12,64 Avg. Asking Rent (Annual, Net, $/SF) Delivered Construction (SF) 133, ,58 87,9 85, 28,558 85, 55,725 12, Occupancy Rate (%) DALLAS TOTAL Absorption (Net, SF) 1,599, , ,212 1,21,582 1,369,142 1,69,48 1,619,26 78,13 1,287,936 Avg. Asking Rent (Annual, Net, $/SF) Delivered Construction (SF) 949,73 342, , , , , 439, ,131 85,365 Occupancy Rate (%) FORT WORTH TOTAL Absorption (Net, SF) 329,23 736,46 1,16,81 451,159 68,18 78,441 1,45, ,22 272,5 Avg. Asking Rent (Annual, Net, $/SF) Delivered Construction (SF) 161,87 511, , , , 445, 48,9 124,725 22, Occupancy Rate (%) DFW MARKET TOTAL Absorption (Net, SF) 1,928,918 1,48,46 1,778,293 1,472,741 2,49,16 2,398,849 2,664,9 265,35 1,56,436 Avg. Asking Rent (Annual, Net, $/SF) Delivered Construction (SF) 1,11, ,613 1,196,834 72,479 97,187 1,143, 848, ,856 1,68,365 Occupancy Rate (%) Source: CBRE Research, Q Q2 217 CBRE Research 217 CBRE, Inc. 2

3 Figure 3: Historical Completions and Occupancy Rate (s) Occupancy Rate (%) 1,4 1,2 1, Q3 212 Q4 212 Q1 213 Q2 213 Q3 213 Q4 213 Q1 214 Q2 214 Q3 214 Q4 214 Q1 215 Q2 215 Q3 215 Q4 215 Q1 216 Q2 216 Q3 216 Q4 216 Q1 217 Q2 217 Source: CBRE Research, Q Delivered Construction Occupancy Rate Figure 4: Construction Activity by Submarket Market Source: CBRE Research, Q Bldg Count (SF) Delivered Buildings Delivered Construction (SF) Central Dallas 3 265, - - East Dallas Outlying 1 13,8 - - Far North Dallas 24 1,328, , Near North Dallas 1 3, 2 22, North Central Dallas 36 2,434, ,365 Southeast Dallas 4 23, Southwest Dallas 4 96, West Dallas , Central Fort Worth 3 455, Mid-Cities , , Suburban Fort Worth 12 1,468, , TOTAL DALLAS 88 5,365, ,365 TOTAL FORT WORTH 26 2,915, , TOTAL DFW 114 8,28, ,68,365 Treehouse Walnut Hill Lane, Dallas TX Sprouts Farmers Market Lake Highlands Town Center, Dallas TX Q2 217 CBRE Research 217 CBRE, Inc. 3

4 Figure 5: Asking Annual Rents, NNN Avg. Asking Rates ($/SF) Figure 6: Deliveries SF (s) 1,4 1,2 1, Q4 211 Q2 212 Q4 212 Q2 213 Q4 213 Q2 214 Q4 214 Q2 215 Q4 215 Q2 216 Q4 216 Q2 217 Q4 211 Q2 212 Q4 212 Q2 213 Q4 213 Q2 214 Q4 214 Q2 215 Q4 215 Q2 216 Q4 216 Q2 217 Source: CBRE Research, Q Source: CBRE Research, Q Figure 7: Asking Annual Rents by Center Type, NNN Avg. Asking Rates ($/SF) Q2 215 Q4 215 Q2 216 Q4 216 Q2 217 Community Neighborhood Strip Power Lifestyle Source: CBRE Research, Q Figure 8: Top 1 Largest Available Big Box Spaces Submarket Address City Former Use Available (SF) Central Dallas 811 N. Central Expy Plano Dillard s 176,259 North Central Dallas 5 Alpha Road Farmer s Branch The Great Indoors 141,69 Near North Dallas 8282 Park Ln Dallas Wholesale Club 111,51 North Central Dallas Midway Rd Farmer s Branch Gabbert s Furniture 15, Central Fort Worth 21 Green Oaks Fort Worth Neiman Marcus 93, Southwest Dallas 255 W Red Bird Ln Dallas Terry s Market 72,911 Southwest Dallas 741 S Westmoreland Rd Dallas Home Depot 71,842 Far North Dallas Lavon Drive Garland Albertson's 66,817 North Central Dallas 4268 Legacy Drive Frisco Neighborhood Grocer 62,82 Mid-Cities 5425 S. Cooper St Arlington Tom Thumb 62,539 Source: CBRE Research, Q Q2 217 CBRE Research 217 CBRE, Inc. 4

5 CONTACTS CBRE OFFICES Robert C. Kramp Director, Research & Analysis CBRE Dallas 21 McKinney Ave, Suite 7 Dallas, TX 7521 E. Michelle Miller Research Operations Manager michelle.miller@cbre.com Robert Basiliere Senior Research Analyst robert.basiliere@cbre.com To learn more about CBRE Research, or to access additional research reports, please visit the Global Research Gateway at Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.