DFW AIRPORT

Vital Stats

Current Events

The Dallas-Fort Worth (DFW) Airport industrial submarket started off 2023 with a vacancy rate of 4.8% at the end of 1Q 2023. This is a slight uptick compared to the 3.4% vacancy rate due to new delivered product at Passport Park and Highway 121 which will likely be leased in the second or third quarter of this year. The sweet spot size remains in the 200K - 500K SF size range as there are only two options readily available in that size today. Expect rates to continue to rise as Passport Park and Highway 121 become fully built out with minimal options available.

Top Lease Transactions

• Best Lennox has signed a 499K SF lease with Weber Gruene located at their DFW Logistics Hub development on Airport land.

• Forward Air Solutions has signed a 229,200 SF lease with Clarion Partners at 2475 Esters Boulevard in Grapevine.

• Incab America has signed a 134,640 SF lease with Prologis at Heritage Business Park located at 900 S Nolen Drive in Grapevine.

• Encompass Supply Chain Solutions has signed a 102,708 SF lease with Centerpoint at their Bison Grove project in Lewisville

New Developments

• DFW Commerce Center – a 2M SF three (3) building project with CLX on Airfield Drive, set for delivery in Q2 2023

• Royal 114 – a 430K SF four (4) building project with Archway Properties and Nuveen, set to deliver in Q2 2023

• Freeport Commerce Center – a 328,175 SF two (2) building project with Alliance Industrial Company, set for completion in Q2 2023

• Passport 125 – a 125K SF development with Stream Realty Partners at Passport Park, set for completion in Q2 2023

• Valley View Point – ICM Asset Management is under construction on a single building development totaling 120,900 SF on Airport land, set for delivery in Q3 2023

• DFW Logistics Hub – Three (3) building project totaling 1.5M SF developed by Weber & Company and Gruene Real Estate located on Airport land, set for delivery in Q4 2023

• DFW Walnut Hill – HLCI has broken ground on their freestanding 145K SF building located at Passport Park on Airport land, set to deliver in Q3 2023

• Mustang Court – Brookfield is kicking off construction on their 3-building development in Southlake totaling 335,401 SF, set for delivery in Q4 2023

• Skyway Logistics Center – Box Investment Group has broken ground on their freestanding 84K SF development in Irving just east of DFW Airport

• Airport Corporate Center – Leon Capital Group is under construction at 4500 N Belt Line on their 60,400 SF building, set to deliver Q2 2023

The bulk of warehouse rental rates are increasing into the $7.50 - $8.00 range, dependent on building age. In the 50K to 100K SF range, for functional shallow bay product, we are seeing rates from $8.50 to $9.50 depending on the finish level and age. Rental abatements are still prevalent depending on renewal versus new deals and the size of the lease transaction. Tenant improvement costs remained high because of increasing construction costs.

DFW International Airport is ranked as one of the largest cargo airports in the country. It boasts a high proportion of newer buildings since 2000 and, as a result, the submarket has a high concentration of efficient product with clear heights and dock configurations suitable for modern distribution. The submarket consists of large big-box users including Amazon, Uline, PPG, Bed Bath & Beyond, McKesson and many others.