DALLAS–Market fundamentals are now the best since 2006 and trends are expected to remain stable or even improve through the rest of 2014, according to the latest industrial real estate trends report issued by Cushman & Wakefield.
Direct and overall absorption both totaled 6.5 million square feet, a 37.8% and 40.9% increase respectively over last year’s numbers. Some of the major occupiers who have taken space this year include William Sonoma,Tri-Pack Enterprises, UPS Supply Chain, American Building Supply, Cummins Southern Plains, AmeriFreight, Quaker Oats, Cargill Inc., Keystone Automotive and IGPS Logistics.
Industrial leasing activity totals 13.9 million square feet already in 2014. This is a 3.8% increase over the first half of last year. Warehouse/distribution buildings accounted for 86% of the total leasing activity.
Roughly 5.8 million square feet of construction completed, including 8 speculative projects, which accounted for 66.8% of the total space brought to market. There are 16 million square feet of projects currently under development – 6 build-to-suits and 27 speculative buildings. At this rate, Dallas/Fort Worth is set to have the second highest construction total by year-end, second only to 2008 when 20.6 million square feet came to market.