According to Cushman & Wakefield’s third quarter industrial research, the Dallas/Fort Worth (DFW) market is dominating the U.S. in net absorption for industrial real estate year-to-date and has surpassed 1 billion square feet of total inventory.
In Q3 alone, DFW recorded an impressive 6.3 million square feet of net absorption, bringing its year-to-date total to a leading 18.8 million square feet through Q3 of this year. In terms of overall leasing activity, DFW ranks second in the nation with a total of 42.2 million square feet leased so far this year and an additional 9.9 million square feet in just Q3 alone (including renewals). Despite these high numbers, there was a significant decrease in construction activity compared to last year – only totaling at around16 million square feet by the end of Q3 which marks a decline by about71%.
While vacancy rates have increased slightly since last quarter reaching up to their highest level since2014 at9%, it is important to note that most new vacancies are due primarilyto new construction rather than any decreasein demand or occupancy levels.Additionally,the average rental rate remains strong at $8.47 per square foot – maintaining record highs despite elevated vacancy rates.
Overall,Dallas/Fort Worth continues its reign asa national leader withintheindustrialreal estate categoryand shows no signs ofslo
