PRESS RELEASE


DALLAS-FORT WORTH INDUSTRIAL MARKET POSTS RECORD YEAR IN 2016, PROJECTED TO CONTINUE PACE IN 2017

March 13, 2017

DALLAS-FORT WORTH INDUSTRIAL MARKET POSTS RECORD YEAR IN 2016, PROJECTED TO CONTINUE PACE IN 2017
3.5 Million SF of Positive Absorption in Fourth Quarter Brings 2016 Total to 23.1 Million SF

​DALLAS – Dallas-Fort Worth’s industrial market closed 2016 on a positive note, with 3.5 million square feet of positive absorption in fourth quarter of 2016, according to “Industrial Real Estate Outlook – Q4 2016,” a research report from Transwestern.

The overall vacancy rate, including sublet, was 6.7 percent at the end of the fourth quarter, an increase of 70 basis points year-over-year. Direct vacancy was 6.5 percent in the same time period, compared to
5.8 percent at year-end 2015. Despite the high demand for space in the market, vacancy rates are anticipated to tick upward as additional speculative buildings are delivered in 2017.

The Dallas-Fort Worth area has performed exceptionally well since the recession, recording positive absorption each quarter since the end of 2010. Developers have addressed this record demand by delivering over 72 million square feet since 2012, with over 3.2 million square feet delivered in first quarter 2017 so far. Concerns about overbuilding have been assuaged in part due to the 40 percent pre-leasing activity on the 23.3 million square feet currently under construction.

“The availability of land, relatively low-cost of doing business, and access to both domestic and international markets make the region a naturally good fit for logistics firms and trade-related operations,” said Ryan Tharp, North Texas director of research. “Simply put, the Dallas-Fort Worth industrial market is succeeding because of the region’s strong fundamentals and its continued ability to attract capital investment.”

· Overall vacancy in Fort Worth recorded 6.4 percent at the end of the fourth quarter, with positive net absorption of 9.7 million square feet at year end.
· Dallas ended the year with 13.4 million square feet of positive net absorption and an overall vacancy rate of 6.8 percent.
 
· Warehouse/distribution properties in D-FW made up the bulk of the net absorption with 20.8 million square feet, while flex and manufacturing both recorded a little over 1 million square feet each.
· Leasing activity for D-FW totaled 31.5 million square feet at the end of 2016 with the majority of activity taking place in the Southeast Dallas, Northeast Tarrant/Alliance and Meacham/Fossil Creek submarkets.

Download the full “Industrial Real Estate Outlook – Q4 2016” report at: http://twurls.com/9b.

ABOUT TRANSWESTERN
Transwestern is a privately held real estate firm of collaborative entrepreneurs whodeliver a higher level of personalized service – the Transwestern Experience. Specializing in Agency Leasing, Management, Tenant Advisory, Capital Markets, Research and Sustainability services, our fully integrated global enterprise adds value for investors, owners and occupiers of all commercial property types. We leverage market insights and operational expertise from members of the Transwestern family of companies specializing in development, real estate investment management and research. Based in Houston, Transwestern has 34 U.S. offices and assists clients through more than 180 offices in 37 countries as part of a strategic alliance with BNP Paribas Real Estate. Experience Extraordinary at transwestern.com and @Transwestern. For updates from the North Texas region, follow @TranswesternDLS and @TranswesternFTW.


Media Contact:
Chelse Westbrook
817.259.3505
chelse.westbrook@transwestern.com
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