CBRE has released a new report on the industrial market in the Dallas-Fort Worth area for Q3 2017.
CBRE Research reports Q3 2017 marked the 28th consecutive period of positive net absorption in the DFW industrial market, as the market absorbed nearly 8.2 million square feet. This is the second-highest absorption observed this cycle, trailing only Q3 2016 when 8.9 million square feet was taken down by DFW area tenants.
Additional highlights from the report:
• The majority of absorption can be attributed to consumer goods, e-commerce and logistics companies this quarter.
• Q3 2017 was marked by large move-ins, with 43.5% of absorption due to the largest five tenant move-ins.
• The vacancy fell 56 basis points to 6.2% as tenants took down newer empty spaces that had caused recent rises in the rate.
• Buildings delivered in Q3 2017 were 60.3% preleased and accounted for over one third of the quarterly absorption.
• The overall amount of industrial space under construction in DFW continued to decline and is now observed to be around 16.4 million sq. ft. “This was still firmly in the top markets for building activity, but could be a sign that developers are holding back a bit to let the existing vacant space occupy,” according to the report.
• Total Nonfarm employment, a leading demand indicator, rose 2.8% Y-o-Y through August while Wholesale trade rose 2.9% growth; Manufacturing posted an impressive 2.6% increase in jobs; and Trade, Transportation and Utilities posted a 1.9% expansion for the same time period, according to the Texas Workforce Commission.