With the weekly news of new warehouse projects in North Texas, it is not surprising that industrial construction construction in the region is at record levels.
In late 2021, there was more than 45 million square feet of warehouse and logistics space in the Dallas-Fort Worth development pipeline, according to a new report from commercial real estate company Transwestern. That’s more space than any of the towers in Downtown Dallas.
“As expected, Industrial ended the year with new records,” said Transwestern Research Manager Andrew Matheny.
The D-FW area has been a leader in industrial construction in recent years.
At the end of 2020, around 32 million square meters of buildings were on the move, Transwestern reported a year ago.
Since then, developers have started dozens of local warehouse projects.
Most new industrial buildings are in Southern Dallas County, South Fort Worth, and East Dallas, according to the fourth quarter survey.
Transwestern estimates that approximately 44 million square feet of the construction will be devoted to speculative projects.
Net warehouse letting was nearly 11 million square feet for the last three months of 2021. And for all of last year, it had more than 40 million square feet of D-FW inventory needs.
Large leases have been signed by Life Science Logistics, ThredUp, CEVA Logistics, Omni Logistics and Hilti.
According to Transwestern, only about 5% of the warehouse space in North Texas is empty.
“Combined with an optimistic economic outlook and population growth, industrial demand should continue to absorb space in 2022 and beyond and drive rental growth,” the researchers say. “The new development will create 38.8 million square feet of vacancy in the next 12 months and take some of the pressure off vacancy rates in the industry.”