The Dallas-Fort Worth (DFW) industrial market experienced increased absorption and leasing activity last quarter; however, Partners says vacancy only decreased by 10 basis points due to increased deliveries. 

Deliveries totaled 6.7 million square feet this quarter, a sharp 82% increase from the previous quarter and 30.6% from the previous year. Construction activity slightly decreased 1.4% over the quarter to 34 million square feet. 

Leasing activity increased by 23.6% over the quarter and by 70.6% year-over-year. Quarterly net absorption increased significantly by 79.1% to 7.7 million square feet, primarily driven by warehouse/distribution properties, which recorded 7.6 million square feet.

Investment sales totaled $2.4 billion over the past year, with 968 properties sold at an average sales price of $129 per square foot and an average cap rate of 6.4%.

Rental rates were up 3.2% for the quarter and up 4.8% year-over-year to an average of $10.01 per square foot.