Q2 Bi-Annual
December 31, 2018
Q2 Bi-Annual
Rent growth, at 5.5% in the last year, continues to exceed the nominal historical rent growth in the DFW market. This rent growth, backed by very balanced supply and demand, allows DFW developers to successfully lease and sell the leased product in a fluid manner.
New deliveries, totaling 29.9 million SF, should remain steady through 2018 with over 20.9 million SF under construction. Given the volume of deliveries and construction, build-to-suit activity is low as the development community is accurately building to the demand.
The DFW market does not yet receive as much demand for 40’ clear-height buildings as the coastal markets. This is a hot topic as developers seek to ensure clear height meets current and future tenant demands.