Q3 2023 Dallas Industrial Market Report
While DFW’s industrial sector has slowed from historic highs, demand remains robust, with nearly 51 million square feet of space executed within 2,100 transactions. Larger sized leases were driven by 3PL firms, manufacturing, and retailers seeking to harness Dallas-Fort Worth’s central location in the U.S. and multi-modal network.
At 9.2 percent year-over-year, annual rent growth continues to push higher despite decreasing from the peak of 12.2 percent in mid-2022. Interior industrial clusters near major highways and DFW Airport maintain tight vacancy rates.
Industrial construction starts are slowing as deliveries are increasing. Over the past year, deliveries totaled 63.7 million square feet have hit the market, establishing a new record. South Dallas is the epicenter for surging deliveries, with a report of 19 million square feet of new space coming to market this year, accounting for 42 percent of all deliveries.
As companies reevaluate their supply chains following the recent passage of the CHIPS Act grant, the market is positioned to take advantage of opportunities. Several semiconductor manufacturers have a presence in DFW, led by Texas Instruments and other firms, including National Semiconductor, Maxim Integrated Products, and STMicroelectronics.