Cushman & Wakefield’s third quarter industrial research for Dallas/Fort Worth reveals that the market leads the U.S. in net absorption for industrial real estate year-to-date and has exceeded 1 billion square feet of inventory overall. 

The DFW industrial market leads the U.S. with 18.8 million square feet of net absorption through the third quarter of 2024, with with 6.3 million square feet of net absorption in Q3. Year-to-date, the DFW market ranks No. 2 in the U.S. regarding total leasing activity with 42.2 million square feet through Q3 and 9.9 million square feet in the third quarter, including renewals. Additionally, the market had 16 million square feet under construction at the end of Q3, a 71% decline year-over-year. 

In Q3, DFW industrial vacancy increased to 9.3%, the highest level since 2014. Rising vacancy is due almost entirely to new construction. Also, despite elevated vacancies, average rents remain at record highs of $8.47 per square foot.