DFW Industrial Market Sees Strong Sales and Development

Dallas–Fort Worth has cemented its status as a major force in the industrial sector, ranking as the nation’s most active industrial sales market. Despite relatively unchanged prices from last year, the Metroplex recorded a substantial industrial transaction volume in the first two months of 2025, according to CommercialEdge data.

With the highest average industrial sale price in the South, Dallas–Fort Worth continues to thrive amid major transactions. At the end of February, Dallas had 24.1 million square feet of industrial space under construction across 96 properties, accounting for 2.4 percent of existing stock—above the national average of 1.7 percent. This robust development pipeline underscores the Metroplex’s ongoing growth and prominence in the industrial market.

Active industrial sales activity in Dallas-Fort Worth

Dallas has remained the most active industrial sales market nationwide, recording a substantial $415 million transaction volume year-to-date through February, according to CommercialEdge data.

The Metroplex led the Southern region with industrial assets trading at $112 per square foot. Following closely were Baltimore at $132 per square foot and Nashville at $120 per square foot, both trading above the national average of $127 per square foot.

As one of the largest transactions in the market, an affiliate of WPT Capital Advisors acquired two fully leased Class A warehouse/distribution buildings totaling 1.1 million square feet at Elizabeth Creek Gateway in North Fort Worth, Texas. LBA Realty sold the Buildings D and E, at 16000 and 15716 Wolff Crossing, respectively.

Largest development pipeline

At the end of February, Dallas had 24.1 million square feet of industrial space under construction across 96 properties. The pipeline accounted for 2.4 percent of existing stock—above the national average of 1.7 percent.

Phoenix came in second with 15 million square feet, while other markets such as Kansas City (10.5 million square feet), Chicago (7 million square feet), New Jersey (5.6 million square feet) and Indianapolis (3.7 million square feet) had smaller pipelines.

In the first two months of 2025, approximately 2.4 million square feet of industrial space broke ground in the Metroplex across seven properties, representing 0.2 percent of total stock. The index was slightly higher than the national average of 0.1 percent.

Hillwood recently broke ground on an 800,000-square-foot, build-to-suit regional distribution center in Fort Worth, Texas, for DICK’s Sporting Goods. The completion of the project is anticipated in early 2026 and will take shape on an 89.5-acre site inside Hillwood’s Risinger/35 Logistics Park at the intersection of Risinger and Old Burleson roads. 

Strong market for deliveries in 2025

Dallas’ industrial sector saw almost 3 million square feet delivered year-to-date as of February. The 16 properties accounted for 0.3 percent of the market’s total stock, on par with the national average of 0.3 percent.

Compared to peer markets, only Phoenix (6.6 million square feet) surpassed the Metroplex in industrial deliveries. Indianapolis (466,000 square feet), the Inland Empire (748,646 square feet) and New Jersey (842,623 square feet) trailed behind.

Holt Lunsford Commercial—in partnership with Principal Asset Management—recently completed Gateway Crossing Logistics Park in Forney, Texas. The 127-acre campus encompasses more than 1.7 million square feet.

One of the highest vacancy rates in the region

Dallas-Fort Worth’s vacancy rate clocked in at 9.7 percent as of the end of February, recording one of the highest vacancy rates in the region—reflecting a significant 520-basis-point increase year-over-year.

Among peer markets, Indianapolis (9.7 percent) and Chicago (9.4 percent) followed closely, while other metros such as Kansas City (5.8 percent) recorded lower numbers.

CJ Logistics America has leased Southport Logistics Park’s Building 1, a 1.1 million-square-foot warehouse in Wilmer, Texas. The lease of the three-building, 252-acre development owned by Logistics Property Co. marks an expansion for the supply chain subsidiary of South Korea-based CJ Group and its commitment to expand in the Dallas-Fort Worth industrial market.

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