Industrial Investors Remain Bullish on DFW

Don’t look now, but some sectors in some markets aren’t just weathering COVID-19, they’re settling in for years of growth. Consider the DFW market where, during the first half of 2020, more than 8.2 million square feet of industrial space was absorbed. This data, which was culled from recent CBRE research, held close to the year-over-year absorption of 8.7 million square feet that the area experienced in 2019. While the pandemic is causing disruptions in sectors and markets throughout the country, the DFW industrial market appears to be quite healthy. CBRE tracked 71 transactions of 100,000 square feet or larger that closed during the first two quarters. Half of these, comprising 12.6 million square feet, were new leases, with 5 million square feet of that going under contract during Q2 as the pandemic was well underway. Steve Trese, senior vice president with CBRE in Dallas, believes that supply and demand are still fairly in balance across the metro. This holds true both for industrial product in general and for large logistical warehouses. “Smaller, front-park, rear-load product is flying off the shelf in infill areas. Partly because of the lack of quality sites, developers are capitalizing on challenging small land, and getting higher rents than ever before,” Trese said. “Big box is equally successful, but is venturing out farther than our more traditionally tracked submarkets, seeking quality labor, less congested infrastructure and slightly more affordable land basis.” Click to read more at