A surge in e-commerce company leasing is gobbling up millions of square feet of North Texas warehouse space — so much so that D-FW warehouse activity is the top market in the country for industrial building construction and leasing in a new report by Cushman & Wakefield.
The big commercial real estate company looked at warehouse market conditions in major metro areas around the country before putting D-FW at the head of the class.
The new study forecasts than D-FW will see 46.3 million square feet of new warehouse space open in the next two years. And net leasing will total more than 45 million square feet in the area.
“Over the next couple of years, we expect the North American industrial market to remain one of the leading product types to watch,” the new report concludes. “Robust consumer spending supported by stable inflation, wage growth and low unemployment bode well for industrial demand, not to mention structural changes related to e-commerce.
“New leasing activity will be driven in large part by leasing among traditional and online retailers as well as third-party logistics providers as consumers demand goods at a grander and faster scale.”
Nationwide, developers added more than 336 million square feet of warehouses last year.
Along with D-FW, the top building markets include Southern California, Atlanta and Chicago.
Cushman & Wakefield expects another 574 million square feet of warehouses to be added to the North American market by the end of next year.
In 2019, expanding and relocating industrial tenants net leased more than 30 million square feet of D-FW warehouse space.
And more than 28 million square feet of new warehouse buildings were under construction in the area at the start of 2020.
D-FW Warehouse Activity Original Article: Steve Brown – Dallas Morning News