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D-FW industrial building totals rise again

Warehouse and distribution construction in North Texas is at an all-time high.

North Texas’ industrial building boom gained steam in the final months of 2022.

A staggering 87 million square feet of warehouse and distribution space in Dallas-Fort Worth was in the development pipeline at the end of the year, according to a new report by commercial property firm Avison Young.

More than two dozen of the warehouses on the way contain 1 million square feet or more of space.

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Industrial building in the area has almost tripled in the last four years to a record level of construction and the highest development volume of any U.S. metro area.

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Net industrial building leasing is also at an all-time high in North Texas.

“It is this strong demand and affordability that has been pushing this development pipeline to new highs as the region advances its position as a key U.S. logistics hub,” Greg Langston, principal and managing director for Avison Young’s Dallas office, said in a statement.

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Most of the area industrial development activity in the fourth quarter was in southern Dallas County (26.9 million square feet), north Fort Worth (21.4 million square feet) and eastern Dallas County (10.6 million square feet).

For all of 2022, net industrial building leasing in the D-FW area totaled more than 32 million square feet, Avison Young estimates.

“Exceedingly strong demand has fueled D-FW’s industrial sector, with vacancy near historic lows and absorption at all-time highs,” Avison Young senior insight analyst Walter Bialas, said in a statement.

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Only about 6% of area warehouse space was empty at the end of 2022.

Avison Young estimates that the D-FW area has added almost 130,000 warehouse and distribution sector jobs over the last four years.

(Avison Young )