Dallas-Fort Worth is seeing heightened activity in the industrial space, according to a just released study from Cushman & Wakefield.
According to the report which looked at first quarter data::
• Net absorption for the first quarter of 2019 stands at 5.2 million square feet (Note: Cushman & Wakefield defines absorption as when the tenant takes occupancy.)
• Major tenant move-ins during the first quarter include:
o Stanley Black & Decker 1,279,500 square feet, Alliance
o Ashley Furniture 877,230 square feet, Mesquite
o Thirty-One Gifts 651,518 square feet, DFW Airport
o Lollicup 650,000 square feet, East Dallas
The study notes that the Dallas-Fort Worth area currently has 30.1 million square feet of industrial space under construction, which marks the first time that DFW has surpassed 30 million square feet of product under construction. Development activity is focused on Alliance (7.4 million square feet), DFW Airport (5.6 million square feet), Great Southwest (4.8 million square feet), according to the report.
• During Q1 2019, nearly 5.1 million square feet of industrial space was delivered.
• The overall vacancy rate stands at 7.0%, well below the historical 15-year average of 9.2%
• Notable leases signed this quarter include:
o Hollingsworth Logistics, 494,990 square feet, Great Southwest
o BSN Sports, 324,480 square feet, Great Southwest
o Technology Container Corp (renewal), 200,450 square feet, South Dallas
“The DFW industrial market continued to exhibit healthy growth over the first quarter of 2019 with more than 5.2 MSF of positive absorption,” said Kurt Griffin, executive managing director at Cushman & Wakefield. “This strong demand exceeded new construction deliveries of 5 MSF and overall vacancy declined slightly to 7%. Although there is in excess of 30 MSF currently under construction, over half (15 MSF) of the total is preleased, leaving 15 MSF of available speculative product.