Dallas Maintains the Nation’s Largest Industrial Pipeline

Dallas–Fort Worth opened 2026 with continued momentum across both industrial development and transaction activity, as the market remained one of the most active large-scale logistics hubs in the country, according to Yardi Matrix.

Construction levels stayed elevated through February, supported by a sizeable pipeline of projects underway across the Metroplex. Industrial deliveries also remained strong early in the year, keeping Dallas at the top of its peer set for new completions. On the capital side, sales activity continued across a broad range of assets, while vacancy held close to the national rate alongside steady rent growth.

Dallas industrial pipeline among the nation’s largest

As of the end of February, Dallas had 103 facilities totaling 29.6 million square feet of industrial space under construction, accounting for 2.8 percent of total stock—well above the 1.8 percent national average. The pipeline was larger than in all other major industrial hubs, with Phoenix (20.0 million square feet) and Chicago (11.1 million square feet) also posting sizable totals, while Indianapolis industrial space (6.4 million square feet) and Kansas City (3.5 million square feet) trailed.

The metro’s pipeline also increased significantly from the same period last year, when 14 properties totaling 5.8 million square feet were under development.

Developers broke ground on 11 properties totaling 2.3 million square feet as of the end of February, representing 0.2 percent of total stock.

Medline began construction on a second distribution center, a 1.2 million-square-foot development in Midlothian, Texas, scheduled to become operational next year. The company invested $150 million in the project.

MP Materials also plans to invest $1.25 billion in a rare earth magnet manufacturing facility in Northlake, Texas. Known as 10X, the manufacturing hub will be located on Hillwood’s AllianceTexas campus and will occupy multiple buildings across a 120-acre site.

Logistics Property Co. is also expanding its footprint in Texas with Bear Creek Logistics Park, a two-phase, five-building, 1.5 million-square-foot campus in the Dallas–Fort Worth metro. The company plans to break ground in the second quarter, with completion expected in early 2028.

Deliveries lead the peer set early in the year

Dallas delivered nearly 3.9 million square feet of industrial space year-to-date through February across 22 facilities, accounting for 0.4 percent of total stock, according to Yardi Matrix.

The metro led the peer group on completions during the period, with Chicago (2.9 million square feet) close behind. Indianapolis (782,588 square feet), Atlanta (746,368 square feet) and Kansas City (207,792 square feet) recorded the lowest totals.

Hillwood developed and delivered an 800,000-square-foot build-to-suit regional distribution center in Fort Worth, Texas, for DICK’s Sporting Goods. The facility occupies an 89.5-acre site within Hillwood’s Risinger/35 Logistics Park at the intersection of Risinger and Old Burleson roads. GSR designed the project, while Westwood provided civil engineering services.

Dallas industrial sales activity remains active

Dallas’ industrial sales volume totaled $955 million year-to-date through February, according to Yardi Matrix, making the Metroplex the absolute leader for industrial sales in the country.

Average pricing reached $126 per square foot. Phoenix ($183.89 per square foot) and Indianapolis ($171 per square foot) posted higher averages, while Chicago ($81 per square foot) was lower.

Mapletree Investments sold a 1.4 million-square-foot portfolio of mid- and shallow-bay industrial properties to Dalfen Industrial for $207.5 million. The portfolio includes 19 warehouse assets in key U.S. distribution markets, with 13 located in Dallas–Fort Worth. The transaction was Mapletree’s fifth U.S. warehouse portfolio divestment, following nearly $1.3 billion in total logistics asset sales completed since June 2025.

Vacancy holds near the national rate as rents rise

Dallas–Fort Worth’s industrial vacancy rate stood at 9.1 percent in February, just below the 9.2 percent national average, according to Yardi Matrix.

Within the same peer set, Phoenix posted a 10.1 percent vacancy rate, while Chicago measured 9.5 percent. Atlanta registered 8.9 percent and Kansas City remained tighter at 5.2 percent. In-place rents averaged $6.85 per square foot, up 6.5 percent over the past 12 months, while space leased during the past 12 months averaged $8.82 per square foot.

In the first quarter of 2026, DSV Contract Logistics has leased Northlake 35 Logistics Park’s Building 1, a more than 1 million-square-foot distribution center in Northlake, Texas. Colliers represented the tenant, while KBC Advisors negotiated on behalf of the ownership, Falcon Commercial Development and Clarion Partners. The transaction is one of the largest industrial deals in Northlake in recent years.