News

D-FW will top the country in warehouse building and leasing

By Michele Schueler on Feb 14, 2019 at 03:17 PM in Industry News

The Dallas-Fort Worth area has been one of the country's hottest warehouse and distribution building markets for the last few years, with major expansions by e-commerce companies and consumer products firms.

A new forecast says that D-FW will lead the country in both industrial building demand and construction over the next two years.

North Texas' net industrial leasing will total more than 50 million square feet through 2020, according to the report by commercial property firm Cushman & Wakefield.

That's more industrial demand than the country's previous top warehouse market, the greater Los Angeles area of southern California.

And it's more than 10 percent of the total 495 million square feet of net warehouse leasing Cushman & Wakefield expects nationwide.

In 2018, net warehouse leasing in the D-FW area totaled almost 23 million square feet, and it was the fourth year in a row that the area has surpassed 20 million square feet of industrial building absorption.

Almost 27 million square feet of new warehouse space was completed in D-FW last year.

Cushman & Wakefield is predicting that in 2019 and 2020, another 52.5 million square feet of warehouses will be built in D-FW — more than in any other U.S. metro area.

"With the current tenant activity in the market — tracking 25.2 million square feet of active tenants in D-FW — we are optimistic and excited about the prospects of 2019," Cushman & Wakefield's North Texas executive managing directors Kurt Griffin and Nathan Orbin said in the report. "At the end of 2018, the Dallas-Fort Worth industrial market's 741.3 million square feet of inventory is the third-largest in the U.S., behind only Chicago and Los Angeles.

"The Dallas-Fort Worth industrial market finished 2018 with the nation's second-highest net absorption," behind only the greater Los Angeles area, they said.

SOURCE: Cushman & Wakefield
SOURCE: Cushman & Wakefield
Source: https://www.dallasnews.com/business/real-estate/2019/01/28/new-forecast-d-fw-will-top-country-warehouse-building-leasing