An Update on Dallas-Fort Worth’s Industrial Market

The DFW industrial market is continuing to see unprecedented levels of construction activity, with a record 76.4 million square feet actively in the pipeline. With over 51 million square feet of leasing activity this year and dozens of large “big-box” users (200,000 – 1 million square feet +) eying DFW to consolidate, relocate or expand their presence, the landlords have had the upper hand in the market. Demand for space has been strong, and costs for land and new building construction have increased. All these factors have pushed rates higher. The question now looming in the minds of asset managers and developers is, “Will the demand stay strong enough that I can fill up my new building that is under construction?” 

What is contributing to the fueling of all of this new construction? The explosion of e-commerce (accelerated thanks to Covid) is a primary contributor, followed by a rise in business inventories and elevated gas prices are expected to drive demand for an additional 850 million square feet over the next five years in the US.

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