Dallas-Fort Worth Industrial Market Sees Boost in Absorption and Leasing Activity
The Dallas-Fort Worth (DFW) industrial market recorded a notable increase in absorption and leasing activity during the most recent quarter. However, overall vacancy rates decreased only slightly—by 10 basis points—due to a significant surge in new property deliveries.
A total of 6.7 million square feet of industrial space was delivered during the quarter, an 82% jump from the previous quarter and up 30.6% year-over-year. Despite the uptick in deliveries, construction activity edged down slightly, declining 1.4% compared to the previous quarter, with total construction volume registering at 34 million square feet.
Leasing activity experienced robust growth, rising 23.6% over the quarter and an impressive 70.6% from the same period last year. Net absorption increased 79.1% quarter-over-quarter, totaling 7.7 million square feet. This rise was largely driven by the warehouse and distribution sector, which accounted for 7.6 million square feet of the total net absorption.
Investment metrics also reflected strong market activity. Over the past year, industrial investment sales in DFW totaled $2.4 billion. A total of 968 properties were sold at an average price of $129 per square foot, with an average capitalization rate of 6.4%.
Additionally, rental rates continued to trend upward. The average asking rent rose by 3.2% from the previous quarter and 4.8% year-over-year, reaching $10.01 per square foot.
These figures underscore the DFW industrial market’s ongoing strength, fueled by heightened demand for warehouse and distribution space.
