Dallas-Fort Worth Industrial Market Report

Tapering construction and leasing activity tightens vacancy. New supply continues to temper, supporting a modest decline in vacancy as of the first quarter of 2026. This was especially apparent in South Dallas. There, vacancy fell roughly 450 basis points year-over-year to about 7.3 percent, supported by larger leases, with average commitments above 100,000 square feet, such as Google committing to two warehouses totaling 2 million square feet. The area around the Dallas-Fort Worth International Airport also saw vacancy decline to 10.7 percent, helping push the local average asking rent up roughly 11 percent to $11.60 per square foot. Vacancies may continue to compress, as first-quarter 2026 leasing activity nearly doubled last year’s level alongside a sharply shrinking construction pipeline. Despite lower rents, Fort Worth submarkets maintain tighter vacancy, led by the greater southwest Arlington area at 8.2 percent, as demand rebounds after two years of net relinquishment. However, new supply on the Fort Worth side is expected to test near-term resilience.