CoStar DFW trend: industrial vacancy decreases to 6.9%

DALLAS-FORT WORTH – The DFW industrial market ended third quarter 2014 with a vacancy rate of 6.9 percent, according to CoStar Group DFW industrial market 3Q 2014.

The vacancy rate was down over 2Q 2014, with net absorption totaling positive 2,855,366 sf in 3Q 2014. That compares to positive 3,160,325 sf in 2Q 2014.

Tenants moving into large blocks of space in 2014 include

— Williams-Sonoma Inc. moving into 821,502 sf at Williams-Sonoma Inc.;
— Whirlpool Corporation moving into 725,709 sf at Carter Distribution Center; and
— Cargill moving into 562,500 sf at Westport 20.

Rental rates ended third quarter at $5.25, an increase over 2Q 2014.

A total of 13 buildings was delivered to the market in 3Q 2014 totaling 2,135,306 sf, with 15,716,306 sf still under construction at the end of the quarter.

This trend is compared to the U.S. National Industrial vacancy rate, which decreased to 7.5 percent, with net absorption positive 64.7 million sf in 3Q 2014. Average rental rates increased to $5.47, and 206 buildings delivered to the market totaling almost 30.9 million sf.