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Market Report

Dallas/Fort Worth Industrial

Second Half 2019

Construction Clocks in at Cyclical High; Investor Interest Showing Bifurcation 

 

Development kicked up another notch as builders try to stay ahead of demand. The Metroplex continues to experience exceptional inventory growth, remaining well above the national pace over the past six years. While this short-term oversupply has placed some pressure on vacancy, demand drivers remain robust amid high population growth and strong consumer spending. These, along with Dallas/Fort Worth’s reputation as one of the nation’s premier distribution hubs, keep the development pipeline brimming, with roughly 23.7 million square feet on tap for 2019. One of this year’s most notable projects includes the 1 million-square-foot expansion of the General Motors Manufacturing Complex in Arlington, while the largest completion is a 1.5 million-square-foot distribution center by DFW International Airport that is occupied by Peruvian fruit exporter El Pedregal S.A. Submarkets surrounding the airport remain highly targeted by developers due to the proximity to air and rail transport. The I-35 corridor through north Fort Worth will also witness substantial construction, highlighted by two 1 million-square-foot-plus developments, as well as a similar-size project in nearby Justin.

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