Industrial Leasing Velocity Smashes Old Quarterly Records
The pace of industrial leasing activity in Dallas-Fort Worth is on track to reach a quarterly high of 7.26M SF when the second quarter of 2021 ends in roughly 20 days, Transwestern reports.
As the market heads into the third quarter, it will have set a record 12-month leasing volume of 23.7M SF, Transwestern said.
“If pandemic-related windfalls were dissipating, quarterly leasing volumes would begin tapering down to ‘normal’ levels seen during the last expansion cycle," Transwestern Research Manager Andrew Matheny said in a statement. "This new quarterly record indicates increasing momentum and is a positive signal that the industrial sector continues to experience strong tailwinds in Dallas-Fort Worth."
With demand on track, Transwestern expects to see increased rent growth in the next six to nine months, which should help to offset the growing price of construction materials, land and labor.
Recent data from CBRE suggests top industrial locations near U.S. airports are already seeing major increases in rent as demand for cargo sites near transportation hubs grows from third-party logistics providers. The CBRE data shows rent premiums near DFW Airport are 22.1% above the local market average.