Supply-side pressure continues to push vacancy upwards

The Dallas-Fort Worth industrial market continues to see increases in vacancy, with vacancy reaching 11.2% in Q2 2024. This represents a year-over-year increase of 360 basis points (bps). The East Dallas submarket saw the largest increase in vacancy, reaching 19.3%, a 310-basis-point increase over the prior quarter. The observed increase in vacancy is largely attributed to the new deliveries coming online. In Q2 2024, the Dallas-Fort Worth industrial market saw 14.1 million square feet (msf) in new deliveries. Additionally, the under-construction pipeline remains relatively high compared to other major markets in the country at 21.1 msf. With approximately 90% of the under-construction space being speculative development, it is likely vacancy will continue to increase.

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