Q4 Dallas-Fort Worth Industrial Market Report
Market Overview
Dallas-Fort Worth is a national leader in economic and demographic growth. The market added 173,000 new residents from 2021 to 2022, ranking at the top nationally. The region’s low cost of doing business and highly skilled labor force have attracted companies from various sectors to relocate or expand operations. Major companies like Goldman Sachs, Wells Fargo, Toyota, and State Farm have chosen Dallas-Fort Worth for significant expansions, adding thousands of jobs to the market. Speculative development has been a main driver of new buildings in the North Fort Worth industrial node, with buildings generally leasing up more quickly.
Market Performance
Deliveries of 68.6 million square feet over the past year set a new record for completions in the Metroplex.
Impressive demand has led to lower vacancy rates, contributing to a market rent growth of 7.9% over the last 12 months, surpassing the U.S. average. In the past 12 months, 68.6 million square feet were delivered in the Dallas-Fort Worth industrial market, and 31.3 million square feet were absorbed. The market vacancy rate has increased to 8.3%, up by 230 basis points from the low of 5.3% at the end of 2022. There are currently 45,045,802 square feet of industrial space under construction in the market. South Dallas is the epicenter for surging deliveries, with 19 million square feet of new space coming to the market this year, accounting for 42% of all deliveries. There was a recorded sales volume of $1.1 billion over the past year, down from the peak of $11.4 billion in mid-2022.
Dallas-Fort Worth By The Numbers | Last 12 Months | Source: CoStar Group
- Vacancy Rate: 8.3%
- Rent Growth: 7.9%
- Deliveries Square Feet: 69.6M
- Absorption Square Feet: 31.3M
- Sales Volume: $1.1B
- Cap Rate: 7.1%
To read the Q3 Dallas-Fort Worth Industrial Market Report, click here.
