Despite the negative impact of COVID-19 on the economy, the demand for industrial real estate in DFW is growing, and the industrial market in the area is booming – resulting in higher occupancy costs and low vacancies.
As demand continues to trend high, new industrial properties are also constantly being added within the market. Dallas Business Journal predicts that approximately 27.9 million square feet of new industrial space will be delivered in North Texas this year. This year, about 8% of all new warehouse development in the pipeline is projected to happen in North Texas.
Hence, DFW’s industrial market is thriving. In fact, DFW is anticipated to be the top industrial market in 2021, thanks to the area’s fast-growing demand and supply. Dallas-Fort Worth is regarded as the “elite” industrial real estate market, standing at par with other popular locations like Atlanta, Chicago, Long Beach, and New Jersey. Here’s why industrial real estate in DFW is a preferred choice for investors –
- DFW enjoys a central location with extensive rail infrastructure, two airports, and excellent roadways connecting all major cities & states.
- Supply chain disruptions during the COVID-19 pandemic have forced consumers to switch to online shopping. As such, e-commerce sales are projected to account for 30% of total retail sales in the U.S. in the coming years. With an increasing trend towards online shopping, the demand for warehouse and distribution space is expected to rise 3x compared to retail space.
The growing population, rising e-commerce sales, strategic location, and increased availability of industrial spaces make DFW a preferred choice for industrial real estate investments. Most importantly, the industrial property market in Dallas-Fort Worth seems to remain unaffected due to the pandemic, which is one of the primary reasons why right now is the time to invest.
However, growing demand has resulted in higher property values, making industrial real estate investors apprehensive about buying. However, considering the long-term value and ROI these DFW industrial properties, the investment is worthy. Additionally, with real estate availability increasing rapidly, we can expect increases in property valuations to slow as demand and supply balance.
To evaluate whether or not it is the right time to invest, consult an industrial real estate agent who can guide you with personalized advice and tailored solutions.