Dallas - Fort Worth Industrial Summary - 3Q 2020

DFW MARKET INSIGHTS – INDUSTRIAL – 3Q 2020 - The Dallas-Fort Worth industrial market has 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 34.4 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 25.1 million SF over the past 12 months. The metroplex leads the nation in construction, with 29.6 million SF underway. For a sense of scale, that's more than Chicago and Atlanta combined.

While activity was found across the metroplex, the region has experienced an “airport effect” in the third quarter. Two airport-oriented submarkets, E DFW Air/Las Colinas and NE Tarrant/Alliance, captured 80% of the move-ins during the third quarter, for a combined 3 million square feet. 

At 3.5%, 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. Transaction activity is driven by institutional capital, with national portfolio sales accounting for a significant portion of sales volume.

Take a look at the individual Submarkets in our DFW Industrial Market Report:


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. 

At the end of 20Q3, the metroplex experienced 36.9 million SF of leasing activity, ahead of where the market was this time last year, with 30.9 million SF leased. The largest lease of the year to date was shipping box and materials distributor Uline. The Wisconsin-based company is taking a 1.1 million square foot facility in Passport Park on 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 drives in the Midlothian Business Park, 25 miles south of Dallas. Construction of the $44 million facility is expected to be completed in 2022.

Amazon continues to add new space in the market: In February, it signed a 1.1-million-SF deal in the DFW Commerce Center on the east side of D/FW International Airport. Also, at the airport, Tempur Sealy signed a 585,000-SF lease in Passport Park. In May, FedEx signed a 776,000-SF deal in Cedardale in the SE Dallas/I-45 submarket.  

In the Eastern Lonestar/Tpke Submarket, Amazon moved into its 2.3 million SF of space just south of I-30 in the Commerce 30 industrial park. 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 25.1 million square feet in 2020, an increase from the 24.5 million square feet in 2019. The metroplex may expect a slowdown in 2021, with the market absorbing 20.6 million square feet. 

costar logo

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.

October 12, 2020

Not sure who to contact?

Looking for Space?