Q3 2024 Dallas Industrial Market Report

The Dallas-Fort Worth (DFW) industrial market faces high vacancies due to rapid construction outpacing demand, with a vacancy rate of 9.5%. Despite notable leases by companies like Google, new supply continues to exceed absorption. Smaller “mid-bay” properties remain resilient, benefiting from steady demand by food and beverage distributors.

Elevated construction costs and tightening borrowing conditions have slowed new developments, with 2025 expected to see fewer completions. Tenant leverage has grown, allowing for better leasing terms, while capital markets have softened with lower sales volume. However, demographic growth and infrastructure improvements may support future demand.

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