{"id":1004771738,"date":"2025-09-18T02:16:25","date_gmt":"2025-09-18T10:16:25","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004771738"},"modified":"2025-09-19T07:14:18","modified_gmt":"2025-09-19T15:14:18","slug":"development-leads-deliveries-slow-in-dallas-industrial-sector","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/development-leads-deliveries-slow-in-dallas-industrial-sector\/","title":{"rendered":"Development Thrives, Deliveries Slow in Dallas’ Industrial Sector"},"content":{"rendered":"
\n
\"A<\/a>
CyrusOne is set to be developed within Calpine Corp.’s Thad Hill Energy Center. CyrusOne marks the first investment of the $50 billion strategic partnership between Energy Capital Partners and KKR. Image by JHET Architects, courtesy of CyrusOne<\/em><\/figcaption><\/figure><\/div>\n\n\n

While many U.S. industrial markets are easing off the gas, Dallas\u2013Fort Worth continues to move forward with steady momentum. According to Yardi Research Data, the metro had nearly 30.5 million square feet of industrial space under construction at the end of July\u2014more than any other market nationwide and nearly double the national average in terms of inventory share.<\/p>\n\n\n\n

The pace of deliveries has slowed, with just 9 million square feet completed year-to-date, compared to more than 20 million square feet during the same period last year. Vacancy has edged up to 10.2 percent\u2014slightly above the 9.1 percent national average\u2014reflecting the impact of elevated supply. Despite these shifts, leasing activity remains consistent and institutional investors continue to show interest, with over $830 million in sales volume recorded so far this year.<\/p>\n\n\n\n

Development activity leads national rankings<\/h2>\n\n\n\n

Dallas\u2019 industrial development pipeline at the end of July reached almost 30.5 million square feet, ranking first among its peer markets, according to Yardi Research Data. Phoenix (16.4 million square feet) and Atlanta (11 million square feet) followed, while New Jersey (5.7 million square feet), Indianapolis (5.2 million square feet) and Kansas City (3 million square feet) were on the lower end of the spectrum.<\/p>\n\n\n\n

The 30.5 million square feet of industrial space under construction represent 3 percent of the total inventory\u2014almost double the 1.7 percent national figure. Phoenix (3.8 percent) led the U.S. rankings.<\/p>\n\n\n

\n
\"Exterior<\/a>
Upon completion, Alliance Gateway 34 will measure about 310,000 square feet. The two new spec buildings will leverage AllianceTexas\u2019 transportation infrastructure anchored by the AllianceTexas Mobility Innovation Zone, Perot Field Fort Worth Alliance Airport and the BNSF Alliance Intermodal Facility. Image courtesy of Hillwood<\/em><\/figcaption><\/figure><\/div>\n\n\n

A total of 127 projects are currently under development. The largest project under construction in the metro is CyrusOne<\/a>, a multi-phase project\u2014dubbed DFW10\u2014set to feature an initial 144-megawatt power capacity. The first phase of the development will include more than 190,000 square feet, with a final target exceeding 700,000 square feet. Energy Capital Partners and KKR are the developers of the $4 billion hyperscale data center campus in Bosque County, Texas. <\/p>\n\n\n\n

Hillwood is also developing two speculative industrial facilities totaling more than 1.1 million square feet at its 27,000-acre AllianceTexas<\/a> master-planned development in North Fort Worth, Texas. Alliance Westport 15 will be a 798,494-square-foot facility at Mobility Way and Intermodal Parkway, while the 310,036-square-foot Alliance Gateway 34 building will be constructed at Westport Parkway and Independence Parkway. <\/p>\n\n\n\n

Deliveries slow amid market rebalancing<\/h2>\n\n\n\n

Year-to-date through July, 9 million square feet of industrial space\u2014across 51 properties\u2014came online in Dallas. Deliveries accounted for 0.9 percent of the market\u2019s total stock, just slightly higher than the 0.8 percent national average. The metro\u2019s industrial deliveries dropped sharply, totaling less than half the volume recorded a year ago, when 20.4 million square feet entered the market.<\/p>\n\n\n

\n
\"Future<\/a>
Lakeview Business District will provide easy access to Interstate 30. The developer financed the project\u2019s construction with a $69 million loan. Image courtesy of Jackson-Shaw<\/em><\/figcaption><\/figure><\/div>\n\n\n

Compared to peer markets, only Phoenix (11.8 million square feet) and Kansas City (10.6 million square feet) surpassed Dallas in industrial deliveries<\/a>. New Jersey (3.9 million square feet), the Atlanta (3 million square feet) and Indianapolis (752,500 square feet) trailed behind.<\/p>\n\n\n\n

Jackson-Shaw and Compatriot Capital have delivered the 417,485-square-foot Building 2 at Lakeview Business District<\/a>, a more than 1.8 million-square-foot industrial campus in Rowlett, Texas. Five buildings totaling more than 1 million square feet are planned. These will range between 88,000 and 417,000 square feet and will be a mix of front-, rear-load and cross-dock.<\/p>\n\n\n\n

Sales volume softens, pricing remains competitive<\/h2>\n\n\n\n

Dallas industrial sales volume year-to-date as of July totaled $833.5 million, with nearly 6.8 million square feet of industrial space trading across 157 properties. The metro lagged most major U.S. markets such as Phoenix ($1.8 billion), New Jersey ($1.6 billion) and Chicago ($1.5 billion), except for Indianapolis ($224 million) and the Kansas City ($50.7 million).<\/p>\n\n\n\n

Assets in the metro changed hands for $123 per square foot on average, lower than the $138.7 national average. Among similar markets, New Jersey ($234 per square foot), Phoenix ($183 per square foot) and Atlanta ($140.9 per square foot) had higher sale prices, while Kansas City ($60 per square foot) fared worse.<\/p>\n\n\n\n

In July, Cohen Asset Management completed two industrial sales totaling 508,889 square feet. The transactions included a single building in Phoenix and a 12-property shallow bay portfolio<\/a> in Richland Hills, Texas. Spanning 258,846 square feet, the Texas portfolio is located at the intersection of Dogwood Park Drive and Wesley Way, approximately 29 miles west of downtown Dallas.<\/p>\n\n\n\n

Vacancy rises above national average<\/h2>\n\n\n\n

Dallas\u2019 industrial vacancy rate reached 10.2 percent at the end of July, higher than the national average of 9.1 percent, according to the latest Yardi Matrix report. During the same month, the Metroplex\u2019s average rent clocked in at $6.56.<\/p>\n\n\n

\n
\"Exterior<\/a>
Southport Logistics Park\u2019s Building 1 has a a 36-foot clear height and 200 dock doors. Image courtesy of Logistics Property Co.<\/em><\/figcaption><\/figure><\/div>\n\n\n

CJ Logistics America has signed a lease for Building 1 at Southport Logistics Park<\/a> in Wilmer, Texas, securing 1.1 million square feet of Class A industrial space. The facility is part of a three-building, 252-acre development owned by Logistics Property Co., strategically positioned to serve the broader Dallas\u2013Fort Worth region. The lease underscores CJ Group\u2019s continued investment in its U.S. supply chain operations and highlights the growing demand for large-scale logistics space in one of the country\u2019s most active industrial markets.<\/p>\n","protected":false},"excerpt":{"rendered":"

The metro recorded more space under construction than any other market, according to Yardi Research Data.<\/p>\n","protected":false},"author":3014,"featured_media":1004767167,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1586,21782,22251,21748,21783,52420,51973],"tags":[51047],"class_list":["post-1004771738","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-dallas","category-development","category-in-focus","category-industrial","category-investment","category-market-updates","category-southwest","tag-marketupdate"],"acf":[],"yoast_head":"\nDevelopment Thrives, Deliveries Slow in Dallas' Industrial Sector - Commercial Property Executive<\/title>\n<meta name=\"description\" content=\"Dallas-Fort Worth recorded more industrial space under construction than any other market nationwide, according to Yardi Research data.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialsearch.com\/news\/development-leads-deliveries-slow-in-dallas-industrial-sector\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Development Thrives, Deliveries Slow in Dallas' Industrial Sector\" \/>\n<meta property=\"og:description\" content=\"Dallas-Fort Worth recorded more industrial space under construction than any other market nationwide, according to Yardi Research data.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialsearch.com\/news\/development-leads-deliveries-slow-in-dallas-industrial-sector\/\" \/>\n<meta property=\"og:site_name\" content=\"Commercial Property Executive\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/CPExecutive\" \/>\n<meta property=\"article:published_time\" content=\"2025-09-18T10:16:25+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-09-19T15:14:18+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.commercialsearch.com\/news\/wp-content\/uploads\/sites\/46\/2025\/07\/CalpineCyrus-One_3-e1754055121467.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"624\" \/>\n\t<meta property=\"og:image:height\" content=\"468\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Diana Firtea\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cpexecutive\" \/>\n<meta name=\"twitter:site\" content=\"@cpexecutive\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.commercialsearch.com\/news\/development-leads-deliveries-slow-in-dallas-industrial-sector\/\",\"url\":\"https:\/\/www.commercialsearch.com\/news\/development-leads-deliveries-slow-in-dallas-industrial-sector\/\",\"name\":\"Development Thrives, Deliveries Slow in Dallas' Industrial Sector - 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