DFW Sees Strong Industrial Sales, Development

April 28, 2025

Market Updates Dallas Development In Focus More Industrial Investment Southwest

The Metroplex remains one of the most active markets in the U.S., according to CommercialEdge data.

Dallas-Fort Worth has cemented its status as a major force in the industrial sector, ranking as the nation’s most active market. Despite relatively unchanged prices from last year, the Metroplex recorded a substantial industrial transaction volume in the first two months of 2025, according to CommercialEdge data.

With the highest average industrial sale price in the South, Dallas–Fort Worth continues to thrive amid major transactions. At the end of February, Dallas had 24.1 million square feet of industrial space under construction across 96 properties, accounting for 2.4 percent of existing stock—above the national average of 1.7 percent. This robust development pipeline underscores the Metroplex’s ongoing growth and prominence in the industrial market.

Strong industrial sales activity in Dallas-Fort Worth

Two Class A warehouses at Elizabeth Creek Gateway in North Fort Worth, Texas — WPT Capital Advisors acquired the two Class A warehouses at Elizabeth Creek Gateway in North Fort Worth, Texas. Image courtesy of PCCP

Dallas has remained the most active industrial sales market nationwide, recording a substantial $415 million transaction volume year-to-date through February, according to CommercialEdge data.

The Metroplex led the Southern region with industrial assets trading at $112 per square foot. Following closely were Baltimore at $132 per square foot and Nashville at $120 per square foot, both trading above the national average of $127 per square foot.

As one of the largest transactions in the market, an affiliate of WPT Capital Advisors acquired two fully leased Class A warehouse/distribution buildings totaling 1.1 million square feet at Elizabeth Creek Gateway in North Fort Worth, Texas. LBA Realty sold the Buildings D and E, at 16000 and 15716 Wolff Crossing, respectively.

Largest development pipeline

At the end of February, Dallas had 24.1 million square feet of industrial space under construction across 96 properties. The pipeline accounted for 2.4 percent of existing stock—above the national average of 1.7 percent.

Phoenix came in second with 15 million square feet, while other markets such as Kansas City (10.5 million square feet), Chicago (7 million square feet), New Jersey (5.6 million square feet) and Indianapolis (3.7 million square feet) had smaller pipelines.

Development at Risinger and Old Burleson roads, Fort Worth, Texas. — The DICK’s Sporting Goods facility will include a plethora of sustainable features and initiatives, such as recycled and environment-friendly construction materials, as well as recycling programs for plastics and corrugate. *Image courtesy of DICK’S Sporting Goods*

In the first two months of 2025, approximately 2.4 million square feet of industrial space broke ground in the Metroplex across seven properties, representing 0.2 percent of total stock. The index was slightly higher than the national average of 0.1 percent.

Hillwood recently broke ground on an 800,000-square-foot, build-to-suit regional distribution center in Fort Worth, Texas, for DICK’s Sporting Goods. The completion of the project is anticipated in early 2026 and will take shape on an 89.5-acre site inside Hillwood’s Risinger/35 Logistics Park at the intersection of Risinger and Old Burleson roads.

Strong market for deliveries in 2025

Dallas’ industrial sector saw almost 3 million square feet delivered year-to-date as of February. The 16 properties accounted for 0.3 percent of the market’s total stock, on par with the national average of 0.3 percent.

Rendering of Gateway Crossing Logistics Park in Forney, Texas — Holt Lunsford Commercial recently completed Gateway Crossing Logistics Park in Forney. The 127-acre campus encompasses more than 1.7 million square feet. *Image courtesy of Holt Lunsford Commercial*

Compared to peer markets, only Phoenix (6.6 million square feet) surpassed the Metroplex in industrial deliveries. Indianapolis (466,000 square feet), the Inland Empire (748,646 square feet) and New Jersey (842,623 square feet) trailed behind.

Holt Lunsford Commercial—in partnership with Principal Asset Management—recently completed Gateway Crossing Logistics Park in Forney, Texas. The 127-acre campus encompasses more than 1.7 million square feet.

One of the highest vacancy rates in the region

Dallas-Fort Worth’s vacancy rate clocked in at 9.7 percent as of the end of February, recording one of the highest vacancy rates in the region—reflecting a significant 520-basis-point increase year-over-year.

Exterior shot of Building 1 at Southport Logistics Park in Wilmer, Texas. — Southport Logistics Park’s Building 1 has a a 36-foot clear height and 200 dock doors. *Image courtesy of Logistics Property Co.*

Among peer markets, Indianapolis (9.7 percent) and Chicago (9.4 percent) followed closely, while other metros such as Kansas City (5.8 percent) recorded lower numbers.

CJ Logistics America has leased Southport Logistics Park’s Building 1, a 1.1 million-square-foot warehouse in Wilmer, Texas. The lease of the three-building, 252-acre development owned by Logistics Property Co. marks an expansion for the supply chain subsidiary of South Korea-based CJ Group and its commitment to expand in the Dallas-Fort Worth industrial market.