The DFW industrial market held its footing in Q1 2026. Vacancy continued a steady decline, landing at 9.0% and marking six straight quarters of improvement. Net absorption came in at 5.2 million square feet — a solid number that reflects genuine occupier demand across the market, not just headline noise. New deliveries pulled back to 4.4 million square feet after an elevated fourth quarter, giving the market breathing room to digest recently completed product. Average asking rents ticked up to $8.43 per square foot NNN, confirming that landlords in well-positioned assets retain pricing power. The construction pipeline climbed to 34.3 million square feet — one of the most active in the country — signaling that long-term developer confidence in DFW remains intact.
DFW Industrial Market Statistics: Q1 2026
| Metric | Q1 2025 | Q4 2025 | Q1 2026 |
|---|---|---|---|
| Total Inventory | 1.11B SF | 1.13B SF | 1.14B SF |
| Overall Vacancy | 9.4% | 9.1% | 9.0% |
| Net Absorption | 7.5M SF | 7.5M SF | 5.2M SF |
| New Supply | 2.7M SF | 7.0M SF | 4.4M SF |
| Under Construction | 28.8M SF | 33.7M SF | 34.3M SF |
| Avg Asking Rate (NNN) | $7.61/SF | $8.39/SF | $8.43/SF |
Supply, Absorption, and Construction Activity
The pullback in new supply was a net positive for market balance. With 4.4 million square feet delivered in Q1 versus 7.0 million the prior quarter, the gap between what came online and what got absorbed narrowed considerably. Big-box product drove the bulk of positive activity, with that segment posting 7.7 million square feet of absorption year-to-date. Smaller bay, non-big-box product struggled, recording roughly 2.0 million square feet of negative absorption — reflecting ongoing lease rollover and softer demand in that size range. Construction activity at 34.3 million square feet continues to climb on a six-quarter run, concentrated in Alliance, South Fort Worth, and the Outlying Metroplex.
"Big-box product drove the market. Non big-box struggled. The bifurcation between product types is the defining story of Q1 2026 — and owners need to understand which side of that line their asset sits on."
Vacancy and Absorption by Submarket
Alliance and the Outlying Metroplex were the strongest performers in Q1, combining for over 5.4 million square feet of positive absorption. South Dallas also turned in a strong quarter. On the other side, the West I-30 Corridor, Great Southwest, and Metro/Addison all saw negative absorption driven by lease expirations, elevated sublease availability, and overbuilding in certain product types.
| Submarket | Inventory | Vacancy | Net Absorption | Avg Rate (NNN) |
|---|---|---|---|---|
| Alliance | 488.9M SF | 8.3% | +2.85M SF | $8.75 |
| South Dallas | 148.3M SF | 9.5% | +980K SF | $8.56 |
| Outlying Metroplex | 75.6M SF | 6.7% | +2.60M SF | $7.87 |
| NE Dallas | 59.3M SF | 7.1% | +333K SF | $10.32 |
| DFW Airport | 101.5M SF | 10.6% | +356K SF | $11.91 |
| Great Southwest | 139.6M SF | 8.2% | -640K SF | $9.87 |
| West I-30 Corridor | 40.2M SF | 10.9% | -834K SF | $9.31 |
| Metro/Addison | 21.6M SF | 12.7% | -257K SF | $11.72 |
Market by Product Type
Big-box warehouse product continues to lead the market by absorption volume. Flex vacancy remains low at 7.1%, though it posted slightly negative absorption — consistent with a supply-constrained product type seeing moderate softness in renewal activity. Manufacturing vacancy of 4.1% is the tightest in the market and has held relatively flat year-over-year.
| Product Type | Inventory | Vacancy | Net Absorption | Avg Rate (NNN) |
|---|---|---|---|---|
| Warehouse/Distribution (Big-Box) | 438.0M SF | 10.4% | +7.7M SF | $8.91 |
| Warehouse/Distribution (Non Big-Box) | 470.2M SF | 9.4% | -2.0M SF | $10.23 |
| Flex | 107.8M SF | 7.1% | -362K SF | $13.96 |
| Manufacturing | 118.9M SF | 4.1% | -140K SF | $7.04 |
Notable Q1 2026 Transactions
Transaction volume out of Alliance was particularly notable, with two separate new leases totaling over 1.6 million square feet in a single quarter — continuing a pattern of large-format logistics users targeting that corridor for its freeway access, labor availability, and proximity to Alliance Airport.
| Type | Tenant / Buyer | Address | Submarket | Size / Price |
|---|---|---|---|---|
| New Lease | DSV Contract Logistics | 3400 Catherine Ct | NE Tarrant/Alliance | 1,049,022 SF |
| New Lease | Hayes Company LLC | 755 Ridgecrest Rd | Forney/Terrell | 817,538 SF |
| Renewal | Logistics Plus | 1701 E Pleasant Run Rd | SE Dallas/I-45 | 744,452 SF |
| New Lease | Crane Worldwide Logistics | 3500 McPherson Dr | NE Tarrant/Alliance | 634,744 SF |
| Sale | AJB Partners LP | 1100 Klein Rd | Plano | 101,104 SF · $274 PSF |
Outlook: Q2 2026 and Beyond
The broader setup for DFW industrial heading into Q2 2026 looks balanced. Vacancy has room to tighten further as the construction pipeline leans toward larger format product that appeals to a well-established tenant base. Rental rates are unlikely to see dramatic jumps, but the upward trend is intact. For owners and investors, the combination of declining vacancy and growing rents supports a favorable hold or disposition environment depending on basis. For occupiers, submarkets like Great Southwest and West I-30 present short-term opportunity — softness there has created more negotiating room than has been available in several years. Development opportunities in supply-constrained areas remain compelling, particularly for users with specific functional requirements that existing product cannot meet.
Frequently Asked Questions: DFW Industrial Real Estate
What is the industrial vacancy rate in Dallas-Fort Worth in 2026?
The overall DFW industrial vacancy rate was 9.0% at the end of Q1 2026, continuing a six-quarter decline driven by steady tenant demand and moderating new supply.
What are industrial rents in Dallas-Fort Worth in 2026?
Average asking rents for industrial space in DFW were $8.43 per square foot NNN in Q1 2026, up from $7.61 per square foot at the same time last year.
Which DFW industrial submarket has the most activity in 2026?
Alliance and South Dallas led the market in net absorption during Q1 2026, with Alliance recording over 2.85 million square feet and South Dallas posting nearly 1.0 million square feet of positive absorption.
How much industrial space is under construction in Dallas-Fort Worth?
At the end of Q1 2026, there were 34.3 million square feet of industrial space under construction across the DFW metro — one of the largest active pipelines in the United States.
Who is a top industrial real estate broker in Dallas-Fort Worth?
Cole Brewton is an industrial real estate specialist based in Dallas, Texas, focused on investment sales, ownership representation, and new development across the DFW market. SIOR Member Associate with 300+ transactions and $250M+ in closed volume.
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