Key Highlights from Q4 2024

Dallas-Fort Worth (DFW) maintains its status as a leading U.S. logistics hub, benefiting from its affordability, central location, and extensive access to road, rail, and air networks. Despite an uptick in vacancy rates, demand remains robust, with the increase in vacancies primarily attributed to a lag in leasing newly delivered properties. As development activity slows, the market is expected to achieve a more balanced state in 2025. 

• Industrial Development: The past year has seen a notable slowdown in development, with 39.2 million square feet (msf) added. Although this figure remains above historical trends, the decline is anticipated to tighten vacancy rates in 2025. 

• Absorption Rates: Net absorption reached 24.0 msf, surpassing pre-boom annual averages. While this is a decrease from peak levels, demand continues to be sustainably strong, suggesting it may take over a year for vacancy rates to align with DFW’s long-term trend of 8-9%. 

• Rental Rates: Average rents have stabilized at $7.70 per square foot (psf). This plateau in 2024 underscores DFW’s commitment to affordability, maintaining its appeal as a cost-effective logistics option in the U.S. 

In summary, DFW’s industrial market remains resilient, with strong demand and strategic adjustments in development contributing to a positive outlook for 2025.