Dallas-Fort Worth market remains resilient, amidst signs of stabilization

The Dallas-Fort Worth industrial market continues to see strong leasing, as demand holds firm. Large deals are still being executed, with four out of the top five major transactions being over 500,000 square feet (sf). While the construction pipeline remains high at approximately 17.1 million square feet (msf), new deliveries were 5.2 msf for Q3 2024. New deliveries slightly outpaced net absorption, with vacancy seeing a quarter-over-quarter decrease of 20 basis points (bps). Demand appears to be keeping up with new supply, and given the significant amount of leasing this quarter, it is likely net absorption will continue to remain positive over the near-term. Recent interest rate cuts by the Federal Reserve could further boost leasing activity, as lower borrowing costs make it easier for tenants to renew or expand and for landlords to offer competitive terms. Going forward, if the construction pipeline continues to slow and net absorption trends near historical levels, demand will likely catch up to new supply, and the market may begin to stabilize.

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