DFW’s strong industrial fundamentals continue unchanged

Average vacancy has fluctuated slightly, depending on quarterly deliveries

August 07, 2019
  • Average vacancy has fluctuated slightly, depending on quarterly deliveries. As of Q2, it stood at close to an historic low of 7.0%, with good space hard to find in popular locations.
  • 5 of DFW’s 9 submarkets have vacancy below 6%. The tightest include Greater Southwest | Arlington, South Fort Worth, East Dallas, Northwest Dallas, and South Stemmons.
  • Absorption remains strong. At midyear, demand at 10 million square feet should make 2019 another top year, likely coming in around 20 million square feet.
  • Greater Southwest | Arlington, DFW Airport, North Fort Worth, and East Dallas are in highest demand and have accounted for 65% of net absorption so far in 2019. 
  • Although household names dominate large-tenant leasing, significant demand exists for space 250,000 square feet and smaller, as tenants seek to leverage DFW’s prime logistics location.
  • DFW’s strong market has triggered a recent acceleration in construction, especially in North Fort Worth, South Stemmons, and South Dallas, with developers still looking for top land sites. 

Source: JLL Research

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