Dallas-Fort Worth Industrial Market Report

Falling deliveries and targeted demand fuel divergence. Industrial leasing activity in Dallas-Fort Worth softened in early 2025, but vacancy is still expected to tighten this year amid a sharp pullback in new supply. Northwest Dallas, near Dallas-Fort Worth International Airport (DFW), is where most new product will deliver. The area may face short-term volatility due to global trade exposure, though steady leasing from small-bay users should backstop fundamentals. Completions will also concentrate in North Fort Worth, but rising demand from distribution firms helped local vacancy fall nearly 300 basis points over the year ended in March, reinforcing a favorable outlook. Vacancy is also set to decline in East and South Dallas, as fewer deliveries in these submarkets help recently built speculative properties secure tenants. By contrast, net absorption will likely remain weak in Arlington and South Fort Worth, as consumer-facing tenants recalibrate space needs amid softer spending trends, including Walmart’s recent decision to close its 100,000-square-foot e-commerce fulfillment center.