Fueled by increased consumer product demands during the pandemic, Dallas-Fort Worth industrial building leasing set a record in the first nine months of 2020.
Warehouse and distribution tenants have gobbled up 21 million square feet of industrial space in North Texas through September.
Almost 5 million square feet of net leasing was recorded just in the third quarter, according to a new report from commercial real estate firm Cushman & Wakefield.
“The Dallas-Fort Worth industrial market continues to perform extremely well,” Cushman & Wakefield executive managing director Nathan Orbin said. “Even as concerns over the pandemic and an upcoming presidential election exist, demand remained strong,
“We anticipate demand to remain elevated as we are currently tracking over 14 million square feet of active tenant requirements.”
Expanding e-commerce and consumer products firms are driving the demand for North Texas warehouse space.
In the third quarter, some of the biggest leases were by Uline, a Wisconsin-based distributor of shipping, industrial and packaging materials that took 1.6 million square feet of space at DFW International Airport, and Amazon, which leased another 1 million square feet in southern Dallas. Encore Wire Corp added 724,380 square feet of distribution space in McKinney.
“E-commerce and the increasing demand for industrial product is driving the D-FW industrial market,” said Kurt Griffin, Cushman & Wakefield executive managing director. “D-FW has delivered close to 23 million square feet of industrial product year to date with another 24 million square feet under construction.
“However, tenant leasing is keeping up with new supply, maintaining a below historical level vacancy, which currently sits at 6.5%.”
Most of the ongoing industrial development is in southern Dallas County, in the AllianceTexas development area of North Fort Worth, at DFW International Airport and in South Fort Worth.