DFW Industrial Vacancy at 10-Year Low
Industrial vacancy in Dallas dropped significantly in the third quarter, to the lowest rate in 10 years. Only Boston ranks with a larger drop (0.5% versus 0.4% in DFW) though the vacancy rate in Boston is over 19% while DFW is below 12%. Space classified as vacant must be available for tenant buildout within 12 months, and actively being marketed. DFW has 10.1 million square feet of industrial space under construction but it’s largely tenant-driven. Much of the growth is from third-party logistics companies and e-commerce operations, such as two Amazon distribution centers in the area. In general, “the U.S. industrial market is benefiting from consumer and business spending, a recovering housing market, and increased demand for logistics space tied to the growth of e-commerce.”
Source: D Real Estate Daily, Sept 25, 2013.