Dallas Is Leading the US Industrial Pipeline
Up to 592.5 million square feet of industrial space is currently under construction nationally.
Dallas is leading the nation in industrial development, as construction picks up major steam coast to coast.
Up to 592.5 million square feet of industrial space is currently under construction nationally, according to CommercialSearch, and Dallas-Fort Worth is the top market for the second year running at 38 million square feet set to hit the market in 2022.
The trends in Dallas development were accelerated by pandemic-driven demand but have been underway for nearly a decade, CommercialSearch said. More than 208 million square feet of industrial space was added to the region’s inventory over the last decade, buoyed by a strong high-tech manufacturing sector that calls DFW home.
Dallas was followed by Phoenix (more than 36 million square feet under construction), Indianapolis (nearly 30 million square feet), the Inland Empire (25 million square feet) and Chicago (also 25 million square feet).
Amazon dominated the list of largest industrial properties set to be delivered this year, but Giga Texas is expected to be the year’s largest industrial completion at 4.28 million square feet in Austin.
“Tesla’s giant factory — which has already been producing electric vehicles on a limited basis since December — is scheduled for a full opening on April 7 with 15,000 attendees, an event that the company has taken to calling the ‘Cyber Rodeo,’” the report notes. “Once fully operational, the factory will produce the majority of the new Tesla Cybertruck and Semi models, in addition to limited production of other models. It will also serve as the company’s corporate headquarters.”
“With development gearing up and demand high, 2022 is shaping up to be the strongest year yet for industrial development,” the report notes.
And for space-constrained markets, developers are looking new ways to bring product to market, like office conversion projects. Twelve industrial conversion projects have broken ground or been announced in Southern California, for example, with Orange County leading the way.