Dallas-Fort Worth shows sign of stabilization as net absorption keeps up with new supply

The DFW industrial market remains stable, reporting positive net absorption of 7.7 million square feet (msf) in Q4 2024. Net absorption matched new deliveries, keeping the vacancy rate steady from the prior quarter at approximately 11.0%. Demand remains robust, with notable deals including CJ Logistics leasing approximately 1.1 msf and Exel, Inc securing 581,000 square feet (sf). 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. Construction starts rose from previous quarter, increasing the pipeline to 17.4 msf, despite 7.5 msf delivered. While there has been an uptick in speculative development, if net absorption continues to trend near the five-year average, vacancy will likely remain flat over the near term.

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