DFW’s industrial market – space is moving fast, forcing tenants to make quicker location decisions…
DFW’s industrial market is tight. Vacancy has been running consistently near all-time lows at around 7.0 percent.
October 02, 2019
- DFW’s industrial market is tight. Vacancy has been running consistently near all-time lows at around 7.0 percent.
- While construction has been high at more than 26 million square feet, it is matched by equally high absorption.
- Since 2016, absorption has averaged over 20 million square feet annually, with 2019 on target to be a strong year.
- One factor shaping DFW for several quarters is that good, well-located industrial space is being rapidly leased once it hits the market.
- The time (months) industrial space typically sits on the market has been declining tremendously. Since 2006, the DFW average has been around 11 months. As we left the last downturn that spiked to around a year and a half for the overall market, with some locations seeing 20 to 24-plus months common.
- Since 2013 to 2014, months-on-market has consistently declined and now averages 5.9 months for DFW.
- Space in popular locations, like North Fort Worth, and Great Southwest | Arlington, has been moving even faster, necessitating that prospective tenants make decisions quickly to ensure they lock down their prime space options.
Source: JLL Research