The Dallas-Fort Worth industrial market was performing well to start 2020, thanks to the metro's robust job and population growth. 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 33.1 million SF of new product. However, vacancies have remained stable at 6.8% due to a combination of impressive demand for speculative projects and a few significant build-to-suits that delivered. The market has been keeping up, absorbing 25.7 million SF over the past 12 months. The market leads the nation in construction, with 28.5 million SF underway. For a sense of scale, that's more than Chicago and Phoenix combined.
At 3.5%, rent growth has remained positive and remains one of the leading large metros. This is especially impressive considering the metroplex added 171 million SF of new space this decade. A close second to the 175 million SF added to the Inland Empire in California. Transaction activity is driven by institutional capital, with national portfolio sales accounting for a significant portion of sales volume.
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. Over the past 12 months, eight new leases 500,000 SF or greater - have been signed. These include Callaway Golf (810,900 SF) in Alliance Center North, and Amazon (1,000,000 SF) at the D-FW Commerce Center on the southeast side of Dallas-Fort Worth International Airport.
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 square foot facility in Oak Cliff, outside of Dallas, was developed by Hillwood.
Dallas-Fort Worth has several structural advantages over other national distribution markets. The expansion of the Panama Canal will continue to help boost demand in the region. While directly benefiting the Port of Houston, Dallas-Fort Worth has rail and highway access to the port. With such robust infrastructure in place, including the presence of four major intermodal terminals and the massive Dallas-Fort Worth International Airport, the metro serves as a major inland port. Further infrastructure improvements continue to boost the competitiveness of the metro, as well. Hillwood Properties and the City of Fort Worth completed a $250 million project to expand Fort Worth Alliance Airport's runway from 9,600 feet to 11,000 feet in early 2018. The extended runway allows for fully loaded, fully fueled jets to take off in almost any weather.
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.