DFW Industrial Leasing Hits Record Highs as Data Centers Fuel Demand
Data centers are adding fuel to an already booming industrial market.
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Good morning. DFW’s industrial market recorded a record 40.3M SF of leasing in the first half of 2026, with data center-related demand adding momentum to traditional industrial sectors. With rents up 13% and another 20M SF already leased but not occupied, DFW could be on track for its strongest absorption year yet.
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Market Snapshot
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Record Demand
DFW Industrial Leasing Hits Record Highs
Dallas-Fort Worth’s industrial market is breaking records as broad-based demand and data center growth push leasing activity to new highs.
Leasing reaches new heights: Industrial leasing reached a record 40.3M SF in the first half of 2026, nearly 4% above Q1. Over the past 12 months, landlords signed more than 72M SF in new commitments, with nearly one-third going to 23 big-box users leasing at least 500K SF.
Source: Cushman & Wakefield
Data centers add momentum: Traditional demand from 3PL, manufacturing, e-commerce and retail remains strong, while data center suppliers, manufacturers and service providers have added another major source of industrial demand.
Supply remains active: DFW had 29.8M SF under construction at the end of Q2, nearly 10% of the U.S. total. Developers delivered 13.6M SF during the quarter, matching the metro’s first-half net absorption and helping vacancy dip to just over 8%.
Rents reach a record: Average asking rents climbed more than 13% year over year to $9.19/SF, significantly outpacing the national increase of less than 3%. DFW’s central location and strong rail, air and trucking infrastructure continue to support its appeal as a distribution hub.
Absorption could set a record: Q2 absorption reached 9M SF, bringing the first-half total to 13.6M SF. Another 20M SF has been leased but not yet occupied, creating a lag in reported absorption. Cushman & Wakefield has raised its 2026 forecast from 32M SF to 39M SF, putting the 2022 record of 41.3M SF within striking distance.
Developers are moving outward: As available space tightens, tenants are increasingly considering build-to-suit projects. Celestica is investing $876M in a more than 1M SF campus at AllianceTexas, while Hillwood is developing a 1.2M SF speculative building. Future big-box development is expected to expand toward South and East Dallas, Kaufman County, Denton, Alliance, South Fort Worth and the Mid-Cities.
➥ THE TAKEAWAY
DFW’s next challenge is finding enough space: Demand is showing little sign of slowing, but available industrial inventory is becoming harder to secure. With data centers adding fuel to an already diverse tenant base, development will likely continue pushing toward the metro’s outer edges.
Around Texas
➥ Houston CRE firms are turning to specialized contractors and Creva Collective to access expert talent affordably while scaling without the cost of building large in-house teams.
➥ Deloitte has completed its move from downtown Dallas to 23Springs in Uptown, taking nearly 112,000 SF and making the new tower its primary North Texas location.
➥ ICE is transferring three Texas warehouses it bought for a planned 8,500-bed detention center, reflecting a broader retreat from the federal government’s warehouse-conversion strategy.
➥ Texas’ pause on data center grid connections could slow projects briefly while clearing speculative power requests and giving established, well-funded developers an advantage.
➥ Demolition has begun at a key Uptown Dallas site tied to Morgan Stanley’s planned $1.3B regional hub, which could bring 700,000 SF and thousands of jobs.
Follow the Money
| OFFICEHOUSTON Stream Realty and AustralianSuper acquired a downtown Houston block to build a 12-story, 2,053-space garage, boosting parking capacity for the 4.2M SF Houston Center. |
| RETAILTEXAS Casey’s is expanding its Texas footprint by acquiring family-owned Pak-A-Sak and its 24 convenience stores across the Panhandle, primarily around Amarillo. |
| MULTIFAMILYAUSTIN & SAN ANTONIO Vantage Communities secured a $103M bridge loan to refinance 864 units across three recently built multifamily communities in the Austin and San Antonio markets. |
| INDUSTRIALFORT WORTH Fort Worth approved up to $4.5M in tax incentives to attract Mach Industries’ planned 310,036 SF drone factory, with the deal tied to $74M in investment and up to 1,000 local jobs. |
| OFFICEAUSTIN Google is spending $25M to renovate 69,000 SF at Austin’s Sail Tower as it gradually moves into its long-term lease through 2038, signaling a deeper commitment to downtown Austin. |
| INDUSTRIALDALLAS Omnilife is opening its $61M, 72,000 SF U.S. HQ in Allen, combining offices, warehousing and manufacturing while tapping the suburb’s highway and airport access. |
📈 CHART OF THE WEEK
DFW multifamily demand remains resilient as vacancy starts to turn the corner, pointing to a potential market stabilization despite continued new supply and elevated competition.
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