The Dallas-Fort Worth industrial market refuses to slow down. 2017 posted the second-highest net absorption total of 23.6 million square feet, just 1.9 million behind 2016’s total. While the vacancy rate has risen due to the large amount of spec deliveries, at 5.9%, it remains significantly below the average for the last 20 years of 8.4%.
As e-commerce continues to drive the industrial market, DFW’s market is shifting toward Big-Box product. Five years ago, Big-Box absorption made up 49% of total absorption, Non Big-Box warehouse 38%, Flex 8% and Manufacturing 5%. In 2017, Big-Box made up 76% of total industrial absorption. 2017 was a record year for Big-Box product. Big-Box posted record absorption this year at 17.9 million square feet, half a million square feet above 2016’s total, which had been the highest recorded. In deliveries, Big-Box completed 22 million square feet, over 5 million higher than 2008, which had the second-highest total.