A couple of weeks ago, we posted a chart showing office rent growth over time in Dallas. We got such strong positive feedback, we thought we’d showcase the same for industrial.
Interestingly, the numbers come out a bit different. Whereas office is still at or still close to peak increases, rent gains for the industrial sector have come off their 2014 and 2015 peaks and begun to moderate for the majority of submarkets. Given the strong and consistent demand we are seeing, we do not expect rent growth to slow appreciably. The biggest governor on rents now is “affordability” – especially for medium to smaller tenants – given that average rents are up 18% over the last three years ($4.29 as of 3Q 2016).
If you have any questions or would like to discuss, please contact us. Our research team is here to assist.