DFW industrial just hit a turning point.
For the first time since 2021, demand outpaced new supply - pushing vacancy down to 9.2%. Meanwhile, office leasing jumped 31.7% quarter over quarter with tenants actively upsizing. Two years of "wait and see" are over. Tenants are making moves. Landlords who positioned their product correctly are getting rewarded. If you're sitting on vacant industrial or office space in DFW and haven't refreshed your marketing strategy this year - now's the time.
Another 770,000 SF of industrial just broke ground in Alliance, Texas. Hillwood's two new spec buildings - Alliance Gateway 70 (268K SF) and 71 (501K SF) - deliver later this year.
A few things worth knowing if you follow DFW industrial: We lease the county in SF under construction - 28.8 million SF in the pipeline. Logistics is still driving most of it. Data centers are up to about 11%, and growing quickly. Tenants still have some leverage right now. Owners are watching new Class A spec reset the bar. And on the investment side, it really does come back to what you pay going in. DFW isn't slowing down - it's just getting pickier. Plenty of good deal
Dallas just ranked #1 in commercial real estate - for the second year in a row. PwC and the Urban Land Institute put us at the top of every major market in the country.
And it's not just a ranking - 22 million square feet of industrial space absorbed in the last 12 months. Highest in the U.S. Retail construction leading the nation. Office sublease coming down. If you own or lease commercial property in DFW - this market is working for you. I'm Steve Burris with Capstone Commercial. Let's talk about what it means for your property.
DFW just led the entire county in industrial absorption. 22.3 million square feet absorbed in the past 12 months. That's not a record for DFW - that's a record for the whole country.
Infill locations near DFW Airport, Lewisville, and HWY 121 are tightest. Rents up 4.5%. Available space getting scarce. If you own industrial in DFW right now, your asset is working for you. If you're a tenant without a long-term lease locked in, it's time to talk. 26 years in this market - the demand is real and it's not letting up.
