By: Walter Bialas
Recently, we highlighted that the drivers of our industrial market are continuing to keep a strong pace. One additional area that this is impacting is land pricing.
While differences exist in location, access, size of the site, and improvements – pricing has been going up. South Dallas, due to its emerging location, has recently seen rates hit $2.40 per square foot. This reflects an increase of 80% in three short years. By comparison, the established Greater Southwest / Arlington submarket is now coming in at $3.00 per square foot, or 25% above 2013.
Quite simply, the solid market dynamics are driving this demand for land – we’ve listed the improvement in occupancy for each submarket below.
We decided to take a look at numbers from 2010 because land prices tend to lag behind the market’s overall movement and amazingly, occupancy in Greater Southwest is now almost 12 percentage points higher.