Q3 2019 DFW Industrial: Continued Positive Absorption

The main takeaway from reports outlining the DFW industrial market during Q3 2019 was absorption, and plenty of it. CBRE pointed out that the quarter is the 36th consecutive one of positive net absorption, while Cushman & Wakefield’s report indicated that “net absorption outpaced new supply added in the quarter . . .” Added CBRE analysts: “Continuing occupier trends seen this cycle, consumer goods, e-commerce and third party logistics companies led demand during Q3 2019.”

NKF analysts also added stable asking rates and a strong supply pipeline to the mix. “The Dallas Fort Worth metroplex remains a highly desirable distribution hub, largely because of its proximity to major transportation arteries, the NKF report said, adding that companies are continuing to flock to North Texas at a record pace.

As for the outlook, Cushman & Wakefield pointed to continued strong demand in the industrial sector, which “will likely allow net absorption to surpass 20 million square feet for the fifth straight year,” while demand catches up to supply. The report indicated that average asking rents will also continue increasing, “due to rising construction and land costs.”