Dallas/Fort Worth Industrial Market Highlights
3rd Quarter 2010
Dallas/Fort Worth industrial market continues to weather the national economic storm but is showing signs of improvement.
The industrial market ended the 3rd Quarter with a vacancy rate of 12.6%. This vacancy rate represented a 0.2 percentage point increase over the previous quarter, when the rate was 12.4%. This change in vacancy rate occurred in a quarter where Dallas/Fort Worth saw (1,356,417) square feet in negative absorption and 33,638 square feet in deliveries. At the end of 3rd Quarter there was 55,684 square feet under construction in the Dallas/Fort Worth industrial market.
Vacancy
The overall vacancy rate in the Dallas/Fort Worth industrial market ended 3rd Quarter 2010 at 12.6%, up from the previous quarter, when it was 12.4%. This 0.2 percentage point increase from the prior quarter compares to a 0.2 percentage point increase since the 3rd Quarter 2009, when the vacancy rate was 12.4%.
At the end of the 3rd Quarter 2010 there was 83,976,147 square feet of vacant space in the Dallas/Fort Worth industrial market. In the 2nd Quarter 2010, 82,610,153 square feet lay vacant, and in the 3rd Quarter 2009, 82,594,636 was vacant.
Absorption & Leasing Activity
In the 3rd Quarter 2010, the Dallas/Fort Worth industrial market had negative absorption of (1,356,417) square feet. This compares to positive net absorption of 1,137,742 square feet in the previous quarter, and negative (3,449,006) square feet in the 3rd Quarter 2009.
Gross absorption was 6,918,592 square feet in the Dallas/Fort Worth industrial market in 3rd Quarter 2010. In the previous quarter, gross absorption was 10,108,356 square feet, and in the same quarter a year ago, gross absorption was 8,676,433 square feet.
Leasing activity was 5,156,705 square feet in Dallas/Fort Worth in the 3rd Quarter 2010. Leasing activity was 4,432,427 square feet in the 2nd Quarter 2010, and 5,780,737 square feet in the 3rd Quarter 2009.
Dallas/Fort Worth recorded negative (379,103) square feet of net absorption in the flex sector in 3rd Quarter 2010. This compares to positive 29,014 square feet of net absorption in the 2nd Quarter 2010 and negative (827,427) square feet in the 3rd Quarter 2009.
The shallow bay distribution market in Dallas/Fort Worth saw negative net absorption of (171,917) square feet in the 3rd Quarter 2010. Gross absorption in that same period was 1,658,668 square feet, while leasing activity was 1,064,995 square feet.
The bulk warehouse market in Dallas/Fort Worth reported negative net absorption of (805,397) square feet in the 3rd Quarter 2010. Net absorption was positive 1,430,115 square feet in the 2nd Quarter 2010 and positive 1,122,072 square feet in the 1st Quarter 2010.
DFW Airport
At the end of the 3rd Quarter 2010, industrial inventory within the DFW Airport market consisted of 62,269,536 square feet in 553 buildings. DFW Airports’ flex market consisted of 10,841,216 square feet in 193 projects. Additionally, there were 121 shallow-bay distribution facilities totaling 8,598,101 square feet. The warehouse market had a total size of 42,830,219 square feet (in 240 buildings).
Year-to-date net absorption for the overall DFW Airport industrial market was negative (20,280) square feet through the end of the 3rd Quarter 2010. Overall vacancy changed from 15.9% at the end of the 2nd Quarter to 16.6% at the end of the 3rd Quarter.
Great Southwest/Arlington
At the end of the 3rd Quarter 2010, industrial inventory within the Great Southwest/Arlington market consisted of 82,563,917 square feet in 975 buildings. Great Southwest/Arlingtons’ flex market consisted of 8,903,525 square feet in 219 projects. Additionally, there were 248 shallow-bay distribution facilities totaling 14,884,042 square feet. The warehouse market had a total size of 58,776,350 square feet (in 508 buildings).
Year-to-date net absorption for the overall Great Southwest/Arlington industrial market was negative (411,108) square feet through the end of the 3rd Quarter 2010. Overall vacancy changed from 16.3% at the end of the 2nd Quarter to 16.8% at the end of the 3rd Quarter.
Northwest Dallas
At the end of the 3rd Quarter 2010, industrial inventory within the Northwest market consisted of 93,569,771 square feet in 1,241 buildings. Northwest Dallas’ flex market consisted of 18,446,428 square feet in 450 projects. Additionally, there were 341 shallow-bay distribution facilities totaling 22,838,119 square feet. The warehouse market had a total size of 52,285,224 square feet (in 450 buildings).
Year-to-date net absorption for the overall Northwest Dallas industrial market was negative (39,726) square feet through the end of the 3rd Quarter 2010. Overall vacancy changed from 15.5% at the end of the 2nd Quarter to 15.1% at the end of the 3rd Quarter.
Northeast Dallas
At the end of the 3rd Quarter 2010, industrial inventory within the Northeast market consisted of 90,988,163 square feet in 1,331 buildings. Northeast Dallas’ flex market consisted of 25,815,289 square feet in 627 projects. Additionally, there were 238 shallow-bay distribution facilities totaling 15,558,54 square feet. The warehouse market had a total size of 49,614,620 square feet (in 466 buildings).
Year-to-date net absorption for the overall Northeast Dallas industrial market was negative (111,249) square feet through the end of the 3rd Quarter 2010. Overall vacancy changed from 11.6% at the end of the 2nd Quarter to 11.8% at the end of the 3rd Quarter.
South Stemmons
At the end of the 3rd Quarter 2010, industrial inventory within the South Stemmons market consisted of 116,515,254 square feet in 2,157 buildings. South Stemmons’ flex market consisted of 23,867,436 square feet in 634 projects. Additionally, there were 754 shallow-bay distribution facilities totaling 31,947,379 square feet. The warehouse market had a total size of 60,700,439 square feet (in 769 buildings).
Year-to-date net absorption for the overall South Stemmons industrial market was negative (1,453,288) square feet through the end of the 3rd Quarter 2010. Overall vacancy changed from 9.3% at the end of the 2nd Quarter to 9.5% at the end of the 3rd Quarter.
Fort Worth
At the end of the 3rd Quarter 2010, industrial inventory within the Forth Worth market consisted of 132,541,310 square feet in 1,661 buildings. Fort Worths’ flex market consisted of 15,638,540 square feet in 344 projects. Additionally, there were 357 shallow-bay distribution facilities totaling 20,148,911 square feet. The warehouse market had a total size of 96,753,859 square feet (in 960 buildings).
Year-to-date net absorption for the North Fort Worth industrial market was negative (137,143) square feet through the end of the 3rd Quarter 2010. Overall vacancy changed from 12.2% at the end of the 2nd Quarter to 13.1% at the end of the 3rd Quarter.
Year-to-date net absorption for the South Fort Worth industrial market was negative (120,853) square feet through the end of the 3rd Quarter 2010. Overall vacancy changed from 6.9% at the end of the 2nd Quarter to 67% at the end of the 3rd Quarter.
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