In 2023, the industrial sector in Dallas-Fort Worth experienced significant growth, leading the nation in new delivered space, according to data from CommercialEdge. The region attracted a variety of companies benefiting from legislative support like the Texas CHIPS Act, which encouraged semiconductor expansion with developer grants.
Dallas took the lead in deliveries, with nearly 61.9 million square feet of industrial space across 177 properties brought online, surpassing the national average by more than double. Phoenix, Chicago, and the Inland Empire followed Dallas in new deliveries. The total industrial inventory in Dallas reached 944.4 million square feet by the end of the year, second only to Chicago.
Construction activity remained strong in Dallas, with 19.1 million square feet of industrial space breaking ground in the metro in 2023. The city also had 27.2 million square feet of industrial space under construction in January 2024. Jackson-Shaw and Compatriot Capital announced plans for Lakeview Business District, a massive 1.8 million-square-foot campus in Rowlett.
Despite economic challenges, investment activity in Dallas remained active. Transaction sales in the metro reached almost $3.4 billion, the highest in the Southern region. Affinius Capital sold a 489,310-square-foot Class A industrial building in Southfield Park 35 for $78.6 million. MDH Partners acquired Fort Worth Logistics Hub Building 1 for $67.5 million.
The industrial vacancy rate in Dallas-Fort Worth stood at 4.3 percent in December 2023, showing a slight increase from the previous year but still lower than the national average. Atlanta, Indianapolis, and Phoenix had the lowest vacancy rates, while the Inland Empire and New Jersey had higher vacancy rates among peer markets.
In August, LKQ Corp. signed a lease for 523,260 square feet at DFW Park 161, a master-planned campus in Dallas. The region ended 2023 with an average industrial rent of $5.77 per square foot, a 7.1 percent increase year-over-year but lower than the national average. Baltimore and Tampa led the region in average industrial rents.