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Avison Young releases Third Quarter 2023 Dallas-Fort Worth Industrial Market Report
October 13, 2023
Dallas-Fort Worth, TX – Avison Young has released its Third Quarter 2023 Industrial Market Report for Dallas-Fort Worth (DFW). DFW’s economy is experiencing continued growth. The area’s total job base has risen by 10.4% since the end of 2019 and hit a new job peak—with industrial jobs rising by 12.1%, or 89,000 new jobs in warehousing, wholesale trade, and manufacturing. In the last year alone, DFW added 25,000 industrial jobs.
DFW’s industrial vacancy has notched up to 8.9%. This is due to a lag in lease-up of its significant development pipeline. For assets delivered in 2020 and 2021, vacancy is sub-6%, much tighter than the market average, and illustrating solid demand for newer product. In comparison, buildings delivered in 2022 are roughly 23% vacant, with this year’s deliveries at 64% vacancy as they are still in the initial lease-up phase.
Due to tight supply and strong and consistent demand, DFW’s industrial rents have been rising the last several years.
“With vacancy in stabilized properties well below its long-term average, the recent increase is not a major market worry because it is driven by the recent deliveries still in initial lease-up,” said Avison Young Senior Market Intelligence Analyst, Walter Bialas.
DFW’s industrial metrics are exceedingly robust.
“Our market continues to reinforce its position as a key national logistics hub due to its central location and accessibility and remains an affordable alternative to some other major markets. Also, with 175 properties under construction, our development pipeline has slowed slightly, which should let some of this new product lease-up and bring our vacancy back down,” noted Greg Langston, Principal and Managing Director for Avison Young’s Dallas office.
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