Record high deliveries continue to push vacancy upwards

The Dallas-Fort Worth industrial market continues to see high levels of deliveries, with the under-construction pipeline remaining the highest in the nation—approximately 41.7 million square feet (msf). Vacancy was pushed upward due to the new deliveries coming online, with vacancy reaching 9.7% for Q4 2023, an increase of 360 basis points (bps) year over year and 170 bps compared to the prior quarter. The North Fort Worth submarket saw the largest number of deliveries this quarter, with 8.3 msf coming online. In addition, 7.3 msf is currently under construction within this submarket, representing 17.0% of the construction pipeline. Vacancy increased 350 basis points for the North Fort Worth submarket, with the submarket seeing the largest quarter-over-quarter increase in vacancy among all the submarkets. Going forward, vacancy will likely continue to trend upward as new development continues to come online.

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