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DFW Industrial Market Swings Toward Equilibrium

DALLAS-Vacancy is still above 8% so it's not likely that building owners will get to control the rates before the end of the year. But, the pendulum is swinging a bit away from the tenants' say with new supply leveling just enough pressure.

By Connie Gore | Updated on August 28, 2002

DALLAS-The Dallas-Fort Worth industrial market is precariously balancing supply and demand as the pendulum swings a bit away from tenants’ control.

“It has not shifted over to a landlords’ market,” says David Busker of Grubb & Ellis Co.’s Dallas research office. “But, it has shifted towards equilibrium from the tenants’ market of six to nine months ago.”

The latest report has vacancy riding at 8.6%, with a shade less than 4.3 million sf under construction. “With vacancy still above 8%, it will not become a landlords’ market by the end of the year,” Busker predicts. But, the limited new supply is applying just the right pressure to dealmaking to keep the terms balanced.

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