Office environment leasing in Dallas-Fort Value continued to drag in early 2021, but demand for North Texas industrial space surged.
Expanding and relocating warehouse and distribution tenants web leased 5.9 million square ft of D-FW industrial room in the 1st quarter, according to a new report from Cushman & Wakefield.
Internet leasing significantly outpaced the 3.9 million square feet of new warehouses that opened in the place in the initial three months of the yr.
Demand from customers for new warehouse and shipping space in North Texas has grown through the pandemic, which has amplified distribution specifications to shoppers.
Main leases signed through the early months of 2021 included Wal-Mart in North Fort Worthy of, Bissell Corp. in southern Dallas and Plastipak in Garland.
The strongest leasing action was close to DFW Intercontinental Airport and in southern Dallas County.
“We continue on to see powerful tenant need for space across all dimension ranges,” said Nathan Orbin, Cushman & Wakefield government running director. “Active person necessities full over 25 million square toes, and there are shortages of offered room solutions in pick submarkets.”
At the end of the initial quarter, 24.6 million sq. toes of industrial house was being designed in North Texas. Most of the design was in southern Dallas County, South Fort Truly worth and the AllianceTexas region of North Fort Well worth.
Lots of extra space warehouse tasks are in the will work to start out afterwards this 12 months.
“Construction pricing is an location of issue as metal charges have risen significantly over the very first quarter,” stated Kurt Griffin, Cushman & Wakefield government handling director. “This may perhaps effects the selection of new challenge starts through the remainder of the 12 months and will force rents higher for those structures that do get developed.”
Even after several yrs of close to-history design, industrial setting up vacancy fees in North Texas declined in the initially quarter to just 7.6%.
The D-FW space qualified prospects the place in full warehouse and distribution area below development in the to start with quarter. And North Texas was next only to Atlanta and Southern California for internet industrial creating leasing in the 1st a few months of 2021.