Business cutbacks aren’t just adding to the office sublease market.
Dallas-Fort Worth companies are also dumping millions of square feet of surplus warehouse space on the sublease market.
At the end of 2023, more than 14 million square feet of sublease industrial space was up for grabs in North Texas, according to a new report from commercial property firm Newmark Group.
D-FW ranks among U.S. metros with the most sublease warehouse space. Industrial sublease space also is at a historical high locally, according to Newmark.
Nationwide, more than 150 million square feet of sublease warehouse space is available.
The surge in industrial subleasing in D-FW has surpassed the supply of office sublease space, which totals almost 11 million square feet in North Texas.
“The rate at which subleases were added to the market has accelerated since the second half of 2022,” Newmark analysts write in their latest D-FW industrial report. “Rising interest rates, an inflationary environment and declining consumer demand are driving some first to control costs via supply chain optimization and consolidation, which includes putting excess or underutilized space up for sublease.”
Along with the millions of square feet of sublease warehouse space, another 69 million square feet of D-FW warehouse space was vacant at the end of 2023, according to Avison Young.
Expanding and relocating businesses net leased more than 28 million square feet of North Texas warehouse space last year.
At the end of 2023, almost 40 million square feet of additional warehouse space was under construction in D-FW. North Texas is one of the country’s top industrial building markets.
Demand for warehouse space across the country has cooled in the last year after companies ramped up their distribution footprint during the pandemic.
