Q1 Industrial: Dallas-Fort Worth Metrics Still Soaring
DFW industrial fundamentals are off the hook. Q1 saw vacancy drop to a razor-thin 5.8% despite 2.3M SF of deliveries on top of the record deliveries of 2017. This is the 30th consecutive quarter of positive absorption in DFW industrial, according to CBRE Research.
Part of the drop in vacancy is due to the removal of Vought Airplane Factory — 3M SF of functionally obsolete industrial space — from the inventory. The rest of the drop can be accounted for with the 3.9M SF of absorption in Q1.
New construction remains flat with 19M SF in the DFW pipeline, 45% of which is pre-committed, mostly due to large build-to-suits in South Dallas.
The top five leases so far this year are Tellworks Communications’ 723K SF lease in Arlington, Exel Logistics’ 410K SF lease in Fort Worth, ProPac’s 349K SF lease in Grand Prairie, Dart Warehouse’s 343K SF lease in Grand Prairie and Vira Insight’s 329K SF lease in Lewisville.
The top five sales are 2020 Singleton Blvd. (472K SF), 500 Airline Drive (468K SF), 4949 Joseph Hardin Drive (276K SF), 7301 Ambassador Row (242K SF) and 2603 Technology Drive (190K SF).