Q1 2023-Market Brief

March 30, 2023

Q1 2023-Market Brief

The industrial market in Dallas-Fort Worth (DFW) is normalizing after seeing incredibly strong growth over the past couple of years. As of Q1 2023, DFW leads the country in new developments, with 64.0 million SF currently under construction. Pre-leasing activity is around 20%, signaling the potential for continued vacancy rises.

Vacancy rates rose slightly to 4.9% after remaining near 4.0% for several consecutive quarters. Occupiers absorbed over 9.8 million SF in Q1, bringing 12-month net absorption to 43.8 million SF. Across the market, the average market rent for industrial space was $7.63 per square foot, up year-over-year from Q1 2022’s $6.42 per square foot.

Download: Q1 2023-Market Brief

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Lee & Associates is a full-service commercial real estate firm specializing in local market expertise for building owners and tenants. The Lee & Associates Dallas-Fort Worth office has proudly served DFW Metroplex for over 15 years. Our experienced team of brokers, market experts, and industry leaders, backed by a nationwide network of 63+ local offices throughout the United States and Canada, delivers local insight, personal service, and proven performance to the people and businesses we serve.