Dallas-Fort Worth currently leads the nation in terms of industrial development, as the market currently has 29 million square feet of completed industrial space over the past 12 months, and there are no signs of slowing down.
The Metroplex currently ranks above the Inland Empire market in Southern California, which has about 23.4 million square feet of completed space, and Chicago, which has about 18 million square feet, according to CoStar data. Another major Texas market, Houston, also ranks among the top five metropolitan areas with 16.8 million square feet.
Industrial development in Dallas-Fort Worth is showing no signs of slowing down, as the market currently has 32.4 million square feet of industrial space under construction. Dallas-Fort Worth also leads the pack of top U.S. industrial markets in terms of net absorption, which stands at 23.9 million square feet over the past 12 months
The East Dallas-Forth/Las Colinas, Northeast Tarrant/Alliance and southeast Dallas/Interstate 45 areas of the market capture 47% of the construction during the 12 month period. The connectivity provided by the airport helped foster development, as two buildings over a million square feet each, such as Bandera Venture’s 1.5 million-square-foot distribution faculty for the Peruvian fruit company Pedrega and Copeland Commercial’s one-million-square-foot distribution facility, was built on Dallas-Forth Worth Airport grounds.
With 929 million square feet of inventory worth $71.7 billion, Dallas-Fort Worth is the third-largest industrial market in the United States. Even with the current levels of construction, vacancy rates have remained stable, now sitting at 6%. Rents have also increased by 5.7% year-over-year.