DFW Market Overview
Texas has seen some of the highest percentages in population growth, with Dallas-Fort Worth (DFW) welcoming almost 100,000 people daily from July 2020 to July 2021. In response, industrial developers, e-commerce, manufacturing, and third-party logistics firms are seeing the market’s potential and following the migration trends by expanding or building in the area. DFW remains one of the strongest industrial markets, recording 13.3 percent in rent growth. As such, DFW leads in industrial inventory and construction growth. Over 28 million square feet of industrial inventory have entered the market in the last 12 months alone. Still, vacancies have remained at 5.6 percent as 33.8 million square feet were absorbed during that same time.
Leasing activity is robust in Dallas-Fort Worth, with 697 leases signed within the first five months of 2022 for a total of 21.4 million square feet. Of those signed, 42 percent were large deals, and 46 leases were 100,000 square feet or more. The Southeast Dallas submarket reported two deals totaling 1.2 million square feet. Forney is the fastest-growing submarket, with copious available, developable land. Goodyear moved a 1.2 million square foot distribution center to serve the eastern half of Texas, followed by Amazon.
The trailing 12-month sales volume is at $805 million as prices continue to escalate to $133 per square foot and cap rates remain at 5.6 percent. Private equity firms accounted for 34 percent of sales in the last year, followed by foreign investors (23 percent) and institutional buyers (23 percent). The largest sale thus far involved a nearly 700,000 square foot distribution center in Meacham Field for $3.2 billion.