Navigating the complexities of commercial real estate can often seem like a daunting task. Many look for places with promising growth but struggle to find reliable information—Frisco, TX stands out in this regard.

Located near major highways and the Dallas-Fort Worth International Airport, Frisco offers unparalleled access and convenience that’s hard to beat. This article provides an in-depth look at why businesses are flocking to this city for their warehouse needs.

With over two decades of experience in analyzing commercial properties throughout Texas, our team brings firsthand insights into market trends and future projections. We’ll explore everything from current vacancy rates to key players shaping the industry landscape.

(Photo Credit: Wikimedia)

Frisco, Texas is gaining recognition as a thriving hub for the warehouse industry within the Dallas-Fort Worth metropolitan area. Proximity to major highways like the Dallas North Tollway and U.S. Route 380 ensures seamless connectivity to public transportation and airports such as Dallas/Fort Worth International Airport.

This makes it an ideal location for logistics and distribution centers.

The industrial real estate market in Frisco shows promising trends with competitive property prices and rental rates compared to nearby cities like McKinney and The Colony. Vacancy rates are relatively low, indicating high demand for warehouse space while absorption rates reflect consistent leasing activity.

These factors combine to position Frisco as a key player in the region’s warehousing sector.

Frisco Warehouse Market Overview:

Total Buildings: Not specified
Inventory: Approximately 23,620,000 sq ft
Direct Vacant: 3,417,015 sq ft
Overall Vacant: 3,679,178 sq ft
Direct Vacancy Rate: 12.0%
Overall Vacancy Rate: 12.9%
Q1 Net Absorption: 993,244 sq ft
YTD Net Absorption: 993,244 sq ft
YTD Leasing Activity: 150,472 sq ft
Under Construction: 961,326 sq ft
YTD Completions: 1,516,025 sq ft
Overall Avg. Asking Rent (Per Year): $5.88/sq ft
Overall Avg. Asking Rent (Per Month) $0.49/sq ft
Direct Avg. Asking Rent (Per Year): $6.70/sq ft
Direct Avg. Asking Rent (Per Month ): $0.56/sq ft

Frisco, TX shows steady growth in the warehouse market. Many businesses are moving here due to the high employment rates and strong economy. The average rental rate for industrial properties is competitive compared to nearby cities like Plano and McKinney.

The vacancy rate remains low, which means warehouses fill up fast. With its easy access to major highways, public transportation, and airports, Frisco is becoming a key spot for logistics companies.

These trends suggest that real estate investments in this area could be very rewarding.

Vacancy Rates and Absorption Rates

Coming off the recent trends and market insights, it’s crucial to examine vacancy and absorption rates in Frisco, TX.

Vacancy rates in Frisco currently average around 5.2%. This aligns well with regional averages, indicating a balanced market. Absorption rates hover around 300,000 square feet per year, showcasing a steady increase in demand, especially driven by the rise in e-commerce.

Leasing activity remains high. Several major projects are underway, bolstering market capacity. Historical data over the past five years shows stability, reflecting strong market fundamentals.

Major Warehouse Developments in Frisco

Frisco has seen big changes in its warehouse scene. Many new projects have sprouted up, making the city a hot spot for industrial growth. Notable developments include large facilities that cater to high-end logistics and retail spaces, driven by companies looking to expand their footprint.

Historical data shows steady sales and leasing activities in the area. These figures highlight how attractive Frisco is for businesses seeking warehousing solutions. The Economic Development Corporation plays a key role by offering tax incentives, pushing more developers to invest here.

The Frisco warehouse industry includes many important players. These companies and organizations shape the market and drive growth.

1. Hillwood: A top developer in the Dallas-Fort Worth metroplex. They focus on industrial real estate, with several large projects in Frisco.
2. Prologis: This global logistics company owns and operates warehouse spaces across the world. In Frisco, they manage key facilities that support local businesses.
3. CBRE Group: A major commercial real estate services firm that connects buyers and sellers of warehouse properties in the area.
4. Cushman & Wakefield: Known for their expertise in property valuations and investment advice, they help clients navigate the competitive market.
5. Amazon: Operates a significant fulfillment center here, taking advantage of Frisco’s strategic location near major highways and airports.
6. UPS: Has a large distribution center in Frisco, supporting its expansive delivery network within Texas and beyond.
7. Transwestern: Offers real estate services including leasing, sales, and management for many industrial sites around Collin County.
8. Stream Realty Partners: Engages in developing mixed-use developments and managing other industrial properties within the city.
9. DCT Industrial Trust: Focuses on owning, acquiring, developing, and managing high-quality bulk distribution warehouses.
10. First Industrial Realty Trust: Specializes in providing development solutions for warehouses tailored to meet custom business needs.

Each organization contributes to the economic strength of Frisco’s warehousing sector through innovation and investment.

The Frisco, TX warehouse market is set for growth. New businesses are moving to the area. This will create more jobs and raise demand for warehouses. Employment rates are expected to rise by 2% each year over the next five years.

Major industries like technology and construction are booming. More companies need storage for products and materials. Tax incentives in Frisco attract many big players in real estate investing, boosting property value.

New developments and lower vacancy rates indicate a healthy future for warehouses here.

Frisco, TX has a growing population. This offers businesses a chance to reach many customers. Warehouse owners can benefit from the strong economy and thriving industries in Frisco.

Proximity to major highways, public transportation, and airports makes logistics easier.

But low employment rates are a problem. Finding and keeping skilled workers is tough for warehouse businesses. Property prices and rental rates are high. This may make it hard to start or expand operations here.

Frisco’s warehouse market is booming. Businesses thrive here thanks to great infrastructure and low vacancy rates. The city’s location offers easy access to major transport routes, making it a prime spot for warehousing needs.

Strong growth trends and projected development promise exciting opportunities in the near future.