February 29, 2024
DALLAS – North Texas industrial building vacancies rose to just under 10 percent at the end of 2023 with almost 40 million sf of additional warehouse construction underway.
Expanding and relocating industrial tenants net leased more than 28 million sf of Dallas-Fort Worth buildings last year, according to a new report by commercial real estate firm Avison Young.
At the end of 2022, DFW industrial vacancies were less than 6 percent.
Net industrial leasing in 2023 was down slightly from the 32.4 million sf of absorption in 2022, according to Avison Young.
At the same time, the amount of DFW warehouse space in the development pipeline has dramatically declined from more than 80 million sf in late 2022 due to higher interest rates and tighter lending standards for commercial real estate.
Industrial buildings that opened in the area last year were on average more than 55 percent vacant when completed, compared with 20 percent vacancy in 2022, according to Avison Young.