Q2 2023-Market Brief
June 30, 2023
Q2 2023-Market Brief
The Dallas-Fort Worth (DFW) industrial market continued to normalize in Q2 2023, with quarterly net absorption slowing to 5.4 million square feet and vacancy rising to 6.2%.
The construction pipeline remained at record levels, with 64 million square feet of space under development. Slowing demand and record deliveries will likely continue to drive up vacancy rate, but expect rental rates to continue climbing.
Demand for industrial space in DFW is being driven by a number of factors, including the strong economy, the growth of e-commerce, and the relocation of businesses from California and other high-cost areas. As a result, the DFW industrial market is expected to remain healthy in the coming quarters.