Dallas-Fort Worth Industrial Market Report

Decade-low pace of new supply may aid recent arrivals. The 48.3 million square feet of industrial space that finalized in Dallas-Fort Worth last year was the largest annual addition for any major U.S. market since the turn of the century. For context, more than 10 percent of industrial space delivered nationally in 2023 was located in the Metroplex. That historic supply wave expanded available stock to an all-time high entering 2024, although pressure is more visible among larger spaces. Developers are tapping the brakes in response, as incoming supply has to contend with recent arrivals trying to secure tenants. This year’s completion total eases to less than half of 2023’s addition, and as of this March, less than 1 million square feet was underway with opening dates set for 2025 and beyond. Smaller properties should continue to be more insulated as well, with sub-100,000-square-foot properties comprising less than 8 percent of the space set to finalize this year. Overall vacancy will rise again in 2024; however, the ingredients are in place for supply and demand to realign in the medium-term. Locations like East Dallas and South Fort Worth are also absorbing new supply relatively well.