DFW Industrial Q2: Population, Employment Propel Construction & Leasing

Halfway through 2019, the Dallas-Fort Worth industrial sector continued its spectacular growth, thanks to population and employment growth in the region. Vacancy continues low, while demand keeps up with what JLL dubbed “unprecedented supply,” also noting that “DFW remained the most active market for construction in the nation for a second consecutive quarter.” CBRE chimed in, adding that market deliveries in Q2 2019 totaled 4.6 million square feet, with pre-leasing at 69%. Meanwhile, CBRE pointed out that speculative sites accounted for approximately 70% of the product under construction.

The outlook is for more of the same; JLL and Cushman & Wakefield are forecasting overall absorption to top 20 million square feet for 2019, while CBRE is predicting a stable vacancy rate, even with new construction. Cushman & Wakefield did add that construction activity is likely to slow, due to “a lack of developable infill land sites . . .”