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Many industrial professionals in DFW thought nothing could top 2015's record year. But as Q3 data proves, 2016's got a shot. JLL managing director Craig Jones tells us industrial fundamentals have surpassed even JLL's positive forecasts.
Craig and his colleagues had predicted vacancy might creep up to around 7.5%, but with almost 6M SF of absorption in Q3, vacancy rates have held solid at 6.3%. Year-to-date absorption totals 16M SF. Craig expects vacancy to slowly climb closer to 7% or 7.5% in the next 18 months or so.
Supply and demand in forthcoming months looks balanced. The 20M SF sitting in the pipeline is around 18% pre-leased and heavily concentrated in South Dallas, Arlington and North Fort Worth. (Only 5% of the pipeline is build-to-suit and 95% is spec.)
Craig's starting to see a downward trend on construction, but is wondering how far out the DFW industrial market will grow. South Dallas still has plenty of land for the taking and Billingsley Co is scooping up land in McKinney. But whether of not we'll run out of industrial land remains to be seen. More than 41M SF of proposed construction is yet to be solidified.
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