DALLAS – Demand for North Texas distribution and warehouse space is showing signs of slipping, but that’s not stopping developers from adding more to the market, reports the Dallas Morning News.
At the end of 1Q2023, almost 75 million sf of new space was in the works in DFW, according to latest estimates from Cushman & Wakefield.
Most of the activity was in southern Dallas County (16.9 million sf), the Alliance area north of Fort Worth (15 million sf), and eastern Dallas County (7.8 million sf).
Developers completed more than 14 million sf of area warehouse projects in the first quarter, significantly more than the net leasing of 4.6 million sf.
“Absorption in the first quarter was closer to those of first quarter 2019 than the record-setting figures in 2021 and 2022,” David Eseke, Cushman & Wakefield executive managing director, said in a statement.
Eseke said demand is slowing for big-box space totaling 300,000 sf or more.