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