Dallas–Fort Worth continues to stand out as a powerhouse in the U.S. industrial real estate market, according to a study by commercialcafe.com.

Through May, the DFW region led all metros across the nation in new industrial development, boasting a staggering 28.1 million square feet under construction —equivalent to 2.8% of its existing stock.

That level of activity dwarfed national construction levels, which are on pace for the slowest year since 2018, as only 86.9 million square feet of new starts were recorded across the country.

Other trends

  • Investment activity in DFW remains hot. Through May, the metroplex recorded approximately $1.3 billion in industrial property sales — leader among the South and ranking among the top nationwide — with average prices remaining just below the national average of $133/square foot. Regional data also showed sales of $415 million through February, underscoring a trend of sustained investor appetite, according to credaily.com.

  • The industrial vacancy rate, however, climbed to 10.2% by May, reflecting a 490‑basis‑point increase year-over-year, which notably exceeds the national average of 8.5% (commercialcafe.com). Although Cushman & Wakefield reported a modest dip to 9.7% in Q1, absorption still lags behind the pace of new deliveries. Submarkets with strong move-ins included Alliance and East Dallas, which absorbed multiple million-square-foot blocks.

What this signals

DFW exemplifies a “build now, fill later” market. Massive construction and investor confidence are fueling growth, even amid leasing challenges. Elevated vacancy underscored that absorption has yet to fully catch up. Nonetheless, the robust sales pipeline suggests optimism that demand will follow suit.

Looking ahead

As new supply continues rolling out into late 2025, landlords may face prolonged vacancy pressures. Still, sustained investor interest and large-scale lease commitments could help absorption normalize later this year — provided broader economic headwinds, including interest rates and trade dynamics, remain stable.