The Dallas-Fort Worth industrial market performed remarkably well in 2020. The market continues to deliver an incredible amount of industrial supply, averaging more than 20 million SF of net new supply annually over the past few years. Over the past 12 months, the market has added 30.9 million SF of new product. However, vacancies have remained stable at 6.9% due to a combination of impressive demand for speculative projects and several significant build-to-suits were delivered. The market has been keeping up, absorbing 23.4 million SF over the past 12 months. The metroplex leads the nation in construction, with 35.6 million SF underway.
In the first quarter of 2021, the market experienced 14.4 MSF of leasing activity. Surpassing where we were last year at the same time by 1.6 MSF. In early 2021 an undisclosed tenant signed a 1.0 MSF lease in the Alliance Westport Industrial Park in the NE Tarrant/Alliance Submarket.
While activity was found across the metroplex, four submarkets captured 60% of the move-ins over the last twelve months. With East DFW Air/Las Colinas accounting for 5.3 MSF. The industrial powerhouses of Eastern Lonestar Turnpike and Southeast Dallas I-45 totaled a combined 6.4 MSF and Northeast Tarrant/Alliance with 2.3 MSF.
At 3.7%, rent growth has remained positive and remains one of the leading large metros. This is especially impressive considering the metroplex has added 171 million SF of new space this decade. A close second to the 175 million SF added to the Inland Empire in California.
Third-party logistics providers, national retailers, and consumer packaged goods firms continue to look to Dallas-Fort Worth as a critical hub for their distribution networks. In May, Amazon opened its first new fulfillment center in Texas since the coronavirus outbreak and launched a hiring spree for 1,500 full-time employees. The 855,000-SF facility in Oak Cliff, outside of Dallas, was developed by Hillwood. The impact of Amazon reverberates across the region; the e-commerce giant signed ten leases totaling 4.3 million square feet and recently completed their 2.3- million- square- foot distribution facility in Grand Prairie.
At the end of 2020, the metroplex had experienced 59.1 million SF of leasing activity, close to the decade-high of 60 million reached in 2018. One of the largest leases of the year was shipping box and materials distributor Uline. The Wisconsin-based company is taking a 1.1 million square foot facility in Passport Park at the south end of D-FW International Airport. California-based health product supplier Sunrider is moving into a 1.1-million-SF facility on the corner of Miller and Challenger in the Midlothian Business Park, 25 miles south of Dallas. Construction of the $44 million facility is expected to be completed in 2022.
In Forney, Goodyear moved into its 1.2-million square foot facility. Nearby, Amazon announced it was adding a 1.2 million-square-foot fulfillment center and delivery station in August. The center will bring 500 jobs and is expected to open in 2021 at 1475 Akron Way, just south of the new Goodyear Logistics Center.
Our projections show the industrial market holding up quite well, absorbing 23.7 million square feet in 2021, an increase from the 21.5 million square feet in 2020. The metroplex may expect a slowdown in 2022, with the market absorbing 15.2 million square feet.
The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice.