DFW Industrial Leasing Sets First-Half Record at 40.3M SF on Data Center Demand

The Numbers Behind Dallas-Fort Worth's Record Industrial Leasing First Half

Dallas-Fort Worth's industrial market set a first-half leasing record of 40.3 million square feet, according to Cushman & Wakefield's second-quarter MarketBeat report. Quarterly leasing rose nearly 4% from the first quarter, and the metro has signed more than 72 million square feet of new commitments over the past 12 months.

The usual demand drivers — third-party logistics, manufacturing, e-commerce fulfillment and retail wholesale — remain strong. What pushed the market into record territory, the brokerage said, is an additional layer of data center-related suppliers, servicers and manufacturers choosing DFW for industrial space.

Nearly one-third of the 12-month leasing total came from 23 users of 500,000 square feet or more. Cushman & Wakefield reported that U.S. new leasing volume reached its highest level since 2022, and DFW was one of only nine markets above 10 million square feet — leading the metric by more than 40%. Average asking rents climbed more than 13% year over year to a record $9.19 per square foot, while national industrial rents rose less than 3% to $10.32 per square foot. Net absorption reached 9 million square feet in the second quarter and 13.6 million square feet for the first half, matching the metro's new supply and keeping vacancy just above 8%.

Cushman & Wakefield Senior Research Manager Andrew Matheny said absorption appears softer than leasing because the firm counts it only when tenants actually move in. Another 20 million square feet has been leased but not yet occupied, much of it by larger users that need longer build-out times. The firm has raised its full-year DFW absorption forecast from around 32 million square feet to about 39 million square feet, putting the 2022 record of 41.3 million square feet within reach.

Why Data Centers and Big-Box Scarcity Have Reshaped the DFW Industrial Market

The Data Center Effect Is More Than a Niche Demand Story

Cushman & Wakefield's report explicitly connects DFW's record leasing to data center-related suppliers, servicers and manufacturers, not just data center operators themselves. This is an important distinction: direct data center growth is pulling adjacent industrial activity into the metro. Celestica's decision to invest $876 million in a more than 1 million square foot advanced manufacturing and engineering campus at AllianceTexas is a concrete example. Matheny said the Toronto-based electronics manufacturer chose a build-to-suit route because existing buildings did not meet its requirements.

Big-Box Scarcity Is Strengthening Landlord Pricing Power

With nearly a third of trailing 12-month leasing concentrated among 23 users of at least 500,000 square feet, large-block options are thinning. Matheny expects big-box leasing to accelerate as choices dwindle. DFW asking rents are up more than 13% to a record $9.19 per square foot, while national rents rose less than 3%. The local vacancy rate is just above 8%, and demand and new supply were balanced at 13.6 million square feet each for the half. That balance explains why landlords can push rents higher even though DFW's absolute rent remains below the national average of $10.32.

Record Leasing Has Not Yet Fully Appeared in Absorption

Because Cushman & Wakefield counts absorption only at move-in, the 20 million square feet of leased but unoccupied space means DFW's reported absorption understates actual committed demand. The firm's raised full-year absorption forecast of about 39 million square feet is an analytical view, but it is supported by signed leases and the remaining five months of 2026. The previous full-year record was 41.3 million square feet in 2022, so a new high is possible but not certain.

Where the Next Development Wave Is Likely to Land

Matheny expects continued big-box development in the periphery: South Dallas, East Dallas suburbs, Kaufman County, Denton, Alliance, South Fort Worth and the Mid-Cities. Hillwood has already started a 1.2 million square foot speculative building in the Alliance Logistics District, and demand is reportedly rising across size ranges, including users from 5,000 to 15,000 square feet. The metro's 29.8 million square foot construction pipeline is down slightly from the first quarter, but still represents nearly 10% of the more than 300 million square feet under construction nationally.

What DFW Industrial Tenants, Developers and Investors Should Do Next

• Tenants needing 500,000 square feet or more should test build-to-suit economics now. DFW's average asking rent is up more than 13% to $9.19 per square foot, and large-block availability is thinning. Celestica's $876 million AllianceTexas campus shows that specific requirements are already being met through construction rather than existing stock.
• Speculative developers should focus on the submarkets Matheny identified for continued big-box activity. South Dallas, East Dallas suburbs, Kaufman County, Denton, Alliance, South Fort Worth and the Mid-Cities are named as likely locations, while Hillwood's 1.2 million square foot Alliance Logistics District spec start confirms appetite on the periphery.
• Landlords and investors can use the 20 million square feet of leased but unoccupied space as a forward demand signal. Cushman & Wakefield expects that space to convert to absorption as larger tenants complete build-outs, which is why it raised its full-year DFW absorption forecast to about 39 million square feet.
• Underwriting should account for DFW's concentration in data center-adjacent industrial demand. Local rent growth of more than 13% compares with less than 3% nationally, and the premium reflects a demand mix that may be more volatile than traditional logistics and manufacturing if the data center investment cycle cools.