Industrial occupier demand in the Dallas–Fort Worth area remains robust as COVID-19 drives e-commerce activity, placing increased demand on large-scale distribution facilities, reported Savills Research in its first quarter report.
The first quarter 2020 saw 9.5 million square feet (msf) of leasing activity, up from the fourth quarter 2019 and down 1.1 msf year-over-year. Amazon appears twice on the top lease transactions list for Q1 2019 as it committed to 1.0 msf in the DFW Airport submarket and 465,000 sf in North Fort Worth, comprising 15.8 percent of total transaction volume by square footage for the quarter. Total net absorption reached 8.5 msf with the largest contributing submarket being South Dallas at 3.4 msf, followed by the Great Southwest/Arlington submarket with 1.9 msf of positive net absorption. Vacancy rates decreased 20 basis points year-over-year to 7 percent, alluding to the resiliency of the Dallas–Fort Worth industrial market.
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