Q1-Q2 Bi-Annual
May 3, 2017
Q1-Q2 Bi-Annual
Vibrant activity, scarcity of infill sites, slight slowdown in deal velocity, increasing finish out costs, more e-commerce and a rising pre-lease rate of 36% sum up the industrial street talk amongst the key industrial brokers and developers as summer winds up in mid Q3 for DFW.
Based on historical market cycles, we are past the expected peak of the market. For many property owners, that leads to selling. For others with a long-term hold profile, building or developing into additional product is the focus.
For occupants, it is difficult to act upon acquiring property at or near peak, however, there is not any current indicators suggesting a decline in lease rates/sale prices and no indicators suggesting any near-term imbalance of supply to demand. We suggest a leading indicator may be a decrease in pre-leasing percentages on speculative projects.
Overall, Dallas/Fort Worth is positioned very well in all performance indicators when compared to the industrial markets across the US.