Industrial Absorption Year-End Record

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By Walter Bialas

Our Dallas/Fort Worth industrial market has been performing extremely well.

We’ve pointed out on several occasions that despite record construction, absorption has been keeping pace. While we thought there might be a slight near-term mismatch between supply and demand, causing vacancy to rise gradually, that has not happened. In fact, as you can see below, vacancy remains at close to its all-time low.

Given where we stand today, we believe the fourth quarter will be strong. Our “forecast” is for net absorption to come in at 22 million square feet for the year. While that may not seem like a big deal, it is a new record for DFW – and that is happening with vacancy still at its low point.


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