Dallas-Fort Worth (DFW) is the fifth-largest metropolitan area in the U.S. and consistently ranks among the top metros for job growth in the country. For the first time ever, Dallas was recently ranked as the #1 U.S. commercial property market in the first half of 2020, according to data from RCA. Overall, the DFW economy has faced short-term disruption from the pandemic and is expected to continue on its growth trajectory. A flurry of economic development wins in the DFW metro has defined the last decade. Over time, DFW’s economic fabric has become more diversified with a global reach that closely resembles the broader U.S. economy. Thanks in part to the metro’s incredible job and population growth, DFW’s industrial demand makes the metro a top emerging market. The metro has averaged over 100,000 new jobs in recent years, with annualized growth near three percent. The region led the nation in employment growth in 2019, adding about 81,800 jobs. The abundant job opportunities have spurred significant population growth, gaining more residents than any other metropolitan area. Due to the region’s low cost of doing business and highly skilled labor, companies across various sectors have relocated or expanded operations to the area, keeping the metroplex on its continued growth curve.
The industrial sector is actively growing as big-box retailers and distribution firms acquire a large amount of square footage. A big reason for DFW industrial construction is due to the available and relatively affordable land. DFW continues to deliver a large amount of industrial supply, averaging over 20 million square feet of net new supply annually over the past few years. More recently, DFW began building industrial properties closer to urban consumers to provide cheaper and faster delivery to urban masses. Following record-level supplies in 2019, 29.5 million square feet of industrial are underway, with 70 percent available for lease, and 34 million square feet absorbed in the previous 12 months.
