Industrial Renewals Indicate Healthier Market

DALLAS-Two recent lease renewals by Illes Seasonings & Flavors and FedEx SmartPost totaling 327,750 square feet prove the Dallas-Fort Worth industrial market is strengthening. They also illustrate the fact that tenants are taking advantage of the favorable leasing environment, according to Nathan Orbin, a vice president with Jones Lang LaSalle’s local office.

Orbin represented Illes Seasonings & Flavors in a 150,000-square-foot lease renewal, along with JLL Managing Director Tom McCarthy. “Anytime we have significant renewals in addition to new transactions, that is a great sign for the overall strength of the real estate market,” he tells GlobeSt, adding that the D/FW industrial market had 2 million square feet of positive absorption in the second quarter, which was positive for the third consecutive quarter. “While renewals don’t directly affect absorption, it is a positive reinforcement of the strengthening market and more importantly it’s not adding to the vacant space that is already available.”