With more than 9M SF of absorption so far in 2017, Dallas-Fort Worth’s industrial market has most brokers grinning. Deal flow slowed slightly in Q2, but the pipeline remains full of both speculative and build-to-suit product — in four submarkets in particular. 

“Availability rate on under-construction projects in DFW has been about 75% in the prior two quarters. Now it’s down to about 60%,” CoStar Group Senior Market Analyst David Kahn said.

Build-to-suit projects and major leases, such as UPS’ 1M SF center at Arlington Commerce Center, play a role in that availability, Kahn said. “The fact that the availability rate on under-construction projects has fallen in recent quarters is a good sign for leasing velocity.”

DFW’s total industrial market tops 580M SF with about 23M SF under construction, according to JLL. 

“In 2016, a lot of brokers were worried we were at peak of supply, but absorption hasn’t slowed down yet,” Kahn said. “That speaks to strength of DFW as a distribution hub.”

Of all the industrial projects under construction in the Metroplex (100K SF or larger), 80% of the square footage is in four submarkets, according to CoStar: South Dallas with 6.2M SF, Great Southwest/Arlington with 5.2M SF, North Fort Worth with 3.5M SF and DFW Airport with 2M SF.

Here is a look at the largest project being built in the four submarkets with the fullest pipelines. 

General Motors Arlington Assembly Plant Expansion in Great Southwest 

The $1.4B expansion of the sport utility vehicle and pickup truck plant topped out in May in preparation for a 2018 delivery. The expansion will add 1.2M SF to the plant, bringing its total close to 5M SF. The plant at 2525 East Abram St. in Arlington employs more than 4,100 people. The expansion will allow GM to install new technologies to improve efficiency and reduce maintenance.  

Trammell Crow 35 | Eagle, Building A in Alliance/North Fort Worth

Trammell Crow will deliver this 1.1M SF facility just north of Fort Worth Alliance Airport at 15245 Heritage Parkway in Q1 2018. Sister projects Building H and Building J have 312K SF and 234K SF under construction, respectively.

“The specs of [Building A] lend itself well to any large bulk distribution use — and all e-commerce users — but the flexibility of adjacent land allows us to pursue extremely heavy parked and trailer requirements,” CBRE Senior Vice President Steve Trese said.

Leasing interest has been strong across all three buildings, but no tenants have inked deals so far.

SouthLink in South Dallas

Hines will enter the South Dallas industrial submarket with a bang when it delivers 1M SF on Cleveland Road in Q1 2018. SouthLink is the third-largest industrial project under construction in DFW, and the largest in South Dallas. Cushman & Wakefield Executive Managing Directors Nathan Orbin and Kurt Griffin already have a lot of leasing interest.

“E-commerce is a big driver in our market and SouthLink is designed to meet the latest specs such as 40-foot clear heights, 70-foot speed bays and an eight-inch slab,” Orbin said. “We are tracking 7M SF of tenants considering South Dallas.”

The site allows for additional development or expansion. 

Logistics Center II in DFW Airport

In a joint venture, Hillwood Investment Properties and Perot Development Co. are developing the second phase of Logistics Center on Bethel Road. The 1.04M SF facility is slightly smaller than the first phase of 1.05M SF but will be occupied by the same tenant: Amazon. Logistics Center II will be Amazon’s eighth Texas facility when it delivers later this year. Amazon inked a 10-year lease and took advantage of some economic development incentives from Coppell and Dallas County.

The submarket attracts tenants because of great access to three major freeways (Interstates 20, 35 and 45), connection to the Union Pacific intermodal facilities in Mesquite and Wilmer and FedEx distribution center, and available workforce, Griffin said.