Wednesday, October 12, 2016

DFW Warehouse Market Booms with the Greatest Leasing Demand in 10 Years

Businesses gobbled up a whopping 8.9 million square feet of Dallas-Fort Worth industrial buildings during the third quarter – the greatest warehouse demand in 10 years.
Warehouse leasing was so strong that building vacancy rates fell to the lowest level in 16 years, just under 6 percent.
The industrial net leasing was twice the rental total for local office space, which is the highest in the country, according to a new report by commercial real estate firm CBRE. 
“This population boom has helped facilitate the exceptional fundamentals seen in the Dallas-Fort Worth industrial market.”“As major corporations continue to relocate to North Texas, they bring along with them their employees, jobseekers, and ancillary service providers,” CBRE analyst Robert Kramp said in the new report. “An estimated 360 people move to Dallas-Fort Worth everyday.
With population in North Texas now topping 7 million, demand for warehousing from retailers, e commerce firms and consumer products manufacturers is exploding.
So far in 2016, companies have rented more than 21 million square feet of additional industrial space in North Texas.
Some of the biggest third quarter leases in the area were made by logistics firms, including NFI and Ozburn-Hessey Logistics.
Warehouse leasing in the most recent quarter outstripped new building completions. Developers finished about 5 million square feet of new industrial projects.
Another 19 million square feet of industrial builidngs were under construction at the end of September, according to CBRE.
Written by Steve Brown - Dallas Morning News