Dallas-Fort Worth, TX Industrial Market Report Q226
Dallas | Fort Worth
Dallas–Fort Worth’s industrial market continued to strengthen in Q2 2026 as robust tenant demand supported improving fundamentals across the metro. Leasing activity remained elevated, driving strong net absorption and contributing to a modest decline in vacancy despite an active development pipeline. Much of the demand was concentrated in modern bulk distribution facilities, with data center operators, logistics firms, and manufacturing users accounting for a significant share of leasing activity.
As the market absorbed the large wave of new supply delivered since 2020, occupancy gains became more widespread across both core and emerging submarkets. Rent growth continued to normalize from the record highs reached earlier in the cycle but remained positive, reflecting healthy tenant demand and improving market balance. The combination of sustained leasing momentum, declining vacancy, and continued absorption has positioned Dallas–Fort Worth among the nation’s strongest industrial markets. With demand continuing to keep pace with new deliveries, market fundamentals are expected to remain stable through the remainder of 2026.
By the Numbers
Q2 2026 | Source: CoStar Group, Inc.
- Sales Volume: $558M
- Price Per SF: $157
- Cap Rate: 6.2%
- Vacancy Rate: 8.5%
- Rent Growth: 2.6%
- Asking Rent Per SF: $10.30
- Under Construction: 44.5M SF
- Delivered: 6.3M SF
- Absorbed: 10.7M SF
Market Overview
- Dallas–Fort Worth remained one of the nation’s strongest industrial markets in Q2 2026, with strong leasing supporting occupancy gains and declining vacancy.
- Data center investment, bulk logistics leasing, and manufacturing expansion continued to drive demand, while larger lease sizes and strong leasing activity accelerated vacancy compression across the market.
- Construction activity remained elevated despite slowing from its 2022 peak, while rent growth moderated across all industrial segments as the market continued absorbing new supply and moved toward more balanced conditions.
DFW Supply & Demand Dynamics
Source: CoStar Group, Inc.
DFW Population Growth
Source: Oxford Economics
Dallas Industrial Posts 366K SF of Positive Absorption
Demand
The market recorded 366,131 square feet of positive net absorption in Q2, while vacancy improved to 9.1%, tightening from 9.41% in Q1 2026 and a year earlier. Rent growth has cooled to a more measured pace, reflecting healthy normalization after several years of exceptional gains. This continued tightening in vacancy underscores resilient tenant demand and reinforces Dallas’s position as one of the most sought-after industrial markets nationally.
Rent Per SF vs Rent Growth
Source: CoStar Group, Inc.
Supply
Disciplined new supply continues to preserve landlord-favorable fundamentals. Net deliveries turned negative in Q2, coming in at -150,853 square feet as building removals outweighed new completions, extending the pullback from the 2023 peak of 7.7 million square feet. With 9 million square feet under construction, the market is working through existing space efficiently, setting the stage for continued vacancy compression and strengthening landlord leverage.
Completions vs Vacancy Rate
Source: CoStar Group, Inc.
Investing
Investment activity posted $8.0 million in industrial sales volume in Q2, at an average sale price of $137 per square foot, up from $136 in Q1 2026. This continued price appreciation signals renewed investor confidence and strong appetite for well-located industrial product, even as deal volume moderated from Q1’s $91.9 million. Institutional and private capital continue to prioritize Dallas on the strength of its population growth, logistics demand, and standing as a premier distribution hub.
PPSF vs Cap Rate
Source: CoStar Group, Inc.
Investment Highlights
Volume
- Q1 2026 volume of $91.9M helped drive $99.9M in total sales YTD
- $1.6B Trailing Twelve Month (TTM) volume remains in line with 3-year average
- Q2 activity continues a steady, multi-year recovery
Pricing
- Market sale price per SF reached $137 in Q2, up from $136 in Q1
- Pricing has climbed for six straight quarters
- Q2 pricing gains point to continued strength
Fort Worth Industrial Posts 440K SF of Deliveries
Demand
Fort Worth posted 2.15 million square feet of positive net absorption in Q1, though Q2 recorded 242,762 square feet of negative absorption as a wave of new deliveries entered the market. Vacancy ticked up slightly to 7.5%, still well below the 9.7% peak seen in mid-2024. With absorption trending positive over the trailing twelve months and vacancy holding near multi-year lows, underlying tenant demand remains healthy even as the market digests a temporary supply wave.
Rent Per SF vs Rent Growth
Source: CoStar Group, Inc.
Supply
Developers delivered 440,089 square feet in Q2, a notable step down from the 1.16 million square feet completed in Q1, signaling continued moderation in new construction activity across the broader market. With the development pipeline thinning out meaningfully quarter over quarter, the market is well-positioned to work through this recent wave of new supply and resume its broader trend toward tighter vacancy and strengthening landlord fundamentals going forward.
Completions vs Vacancy Rate
Source: CoStar Group, Inc.
Investing
Investment activity surged in Fort Worth in Q2, with $235 million in industrial sales volume at an average of $147 per square foot, up sharply from $1.7 million in Q1. This renewed transaction momentum, paired with pricing that has climbed steadily quarter over quarter, points to strong investor confidence in the market’s fundamentals. Buyers continue to gravitate toward Fort Worth given its rising pricing trend and reliable transaction flow, a combination that bodes well for continued capital inflows ahead.
PPSF vs Cap Rate
Source: CoStar Group, Inc.
Investment Highlights
Volume
- Q2 sales volume of $235 million marked a major jump from Q1’s $1.7 million
- Q2 ranked among the cycle’s strongest sales quarters
- Deal activity has trended upward consistently since bottoming out in 2023
Pricing
- Sale price per SF hit $147 in Q2, building on Q1’s $138 mark
- Pricing has nearly doubled since 2020
- Values are on track to reach $150/SF by year-end
