DALLAS COMMERCIAL REAL ESTATE INDUSTRIAL MARKET REPORT | FALL 2026
October 22, 2026
Industrial Market Report: Dallas-Fort Worth Industrial Market Overview, Fall 2026
The Dallas-Fort Worth (DFW) industrial market saw a sharp pickup in demand momentum in Q3 2026. Net absorption more than doubled from the prior quarter, reaching 16.6 million square feet, while vacancy declined across eight of the metro’s nine submarkets. At the same time, new deliveries increased and the construction pipeline remained substantial, leaving conditions increasingly dependent on location, tenant demand and project timing.
This report examines key indicators across the DFW industrial market, including vacancy, absorption, development, rents and investment sales. Together, the Q3 figures point to active leasing and improving occupancy alongside continued competition from new supply. Performance varied across the metro, with some submarkets recording lower vacancy while others faced pressure from deliveries.
Vacancy and Absorption Trends
DFW’s industrial inventory, excluding flex properties, totaled approximately 1.11 billion square feet in Q3 2026. Net absorption reached 16.6 million square feet, up from 6.1 million in Q2 and well above the 4.0 million recorded in Q3 2025. Leasing activity totaled 25.4 million square feet for the quarter.
The overall vacancy rate fell to 8.00%, down from 9.50% a year earlier. Vacancy declined in eight of the nine submarkets, indicating that demand absorbed much of the space delivered during the quarter. However, results varied by location. North Fort Worth/Alliance and South Dallas recorded the strongest absorption, while South Dallas vacancy declined to 5.8% from 7.1% in Q2. South Fort Worth moved in the opposite direction: vacancy edged up to 10.5% amid substantial deliveries.
These differences show how market conditions increasingly depend on submarket-level supply and demand. In areas with active leasing, tenants are absorbing new space; in submarkets receiving significant deliveries, vacancy may rise as newly completed properties compete for tenants.
Development and New Supply
Development remained a defining feature of the DFW industrial market. Approximately 41.6 million square feet were under construction at the end of Q3, up from 34.5 million a year earlier. Developers delivered 10.1 million square feet during the quarter—about twice the amount delivered in Q2.
North Fort Worth/Alliance has the largest development pipeline, making its lease-up progress an important indicator of whether demand can keep pace with new supply. South Dallas presents a different picture: vacancy fell during the quarter even as 5.5 million square feet remained under construction. In South Fort Worth, deliveries contributed to a slight increase in vacancy.
As new projects come online, competition for tenants is likely to remain pronounced in areas with large construction pipelines. The quarter’s results suggest that delivery timing and each submarket’s ability to absorb new space will play an increasingly important role in occupancy trends.
Rental Rates and Pricing
Average NNN asking rent reached $9.93 per square foot in Q3 2026, up from $8.96 a year earlier and $9.57 in 2025. The increase reflects continued rent growth even as supply expands and leasing conditions vary across the metro.
The average industrial sale price was $142 per square foot, compared with $129 in Q3 2025. Infill and supply-constrained locations continued to command higher asking rents. For example, DFW Airport and South Stemmons reported average asking rents of $11.30 and $10.51 per square foot, respectively.
Transaction and Investment Activity
Industrial sales volume totaled approximately $207.3 million in Q3 2026, down from $748.2 million in Q3 2025. While the average sale price increased year over year, the lower transaction volume points to a more measured pace of investment activity during the quarter.
Summary and Outlook
Q3 2026 brought stronger absorption and lower overall vacancy to the DFW industrial market, even as deliveries rose and the construction pipeline expanded. The quarter’s results show continued tenant demand, but also greater variation by submarket as new supply enters the market.
With 41.6 million square feet under construction, competition for tenants will remain an important factor, particularly in areas with large development pipelines. Submarkets with limited availability and strong access to transportation, labor and population centers may continue to support higher rents, while areas receiving substantial new supply will depend on lease-up to keep vacancy in check. Overall, the market remains active, with performance increasingly shaped by location, product and timing.