Dallas-Fort Worth Industrial Market Report
2023 Investment Forecast
Ongoing Population Gains and Reshoring Spur Distribution Growth,
Underpinning Nationally High Absorption
Supply chain advantages stoke leasing commitments. More than 60 percent of all air cargo in the state of Texas is handled at the DFW International Airport, cementing Dallas-Fort Worth as one of the nation’s foremost distribution hubs. Companies looking to streamline their domestic distribution, following global supply chain bottlenecks, may view having a footprint in the Metroplex as a major advantage. Despite recessionary fears, firms continue leasing industrial space in the market, such as ITS Logistics and DHL, which both recently committed to warehouse and distribution facilities topping 1 million square feet. Strong leasing activity at the close of 2022 validates the current expansive pipeline underway. The coming supply wave poses some near-term vacancy headwinds; however, smaller spaces may benefit as most new builds span over 100,000 square feet. This year is slated to be the fifth consecutive annual period where net absorption eclipses 20 million square feet, a greater volume than in any other U.S. metro.