Dallas-Fort Worth Commercial Real Estate Set to Explode in New Year
The estimated 660 million square feet of industrial space in the Dallas-Fort Worth area is being targeted for heavy redevelopment, according to market analysts. The industrial real estate market is already thriving and only expected to grow as companies rethink their distribution and warehousing strategies. Terry Darrow, managing director of Jones Lang LaSalle in Dallas and their commercial property division, points out that “People are getting smarter about their inventories and distribution networks…I think we’ll see significant growth in the Dallas-Fort Worth industrial market over the next five years.”
With a current vacancy rate of 8.5%, the rates of industrial space are expected to increase by over 11% in the new year, to $4.00 per square foot. The reason for this is that major players will be competing for that space, especially in the central Dallas area. Conglomerates such as L’Oreal, Amazon, Quaker Oats and BMW are reportedly in the market for new commercial space. The redevelopment of that space also suggests that jobs will be created to retrofit the properties according to buyer’s needs.
The competition is expected to be fierce for the space as there is not only limited current options but also that speculative development may be slowed by lenders still wary of economic forecasts. But if nothing else, the drive for industrial space proves that Dallas-Fort Worth continues to grow as a highly desirable area for companies and their workers. Also, if rents continue to increase, expect land purchases to become a more viable option, another spark to the already surging real estate market. Either way, Dallas-Fort Worth expects to be a major hub of renewed activity in the coming year.
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