RDE Capital Group LLC
Dallas / Fort Worth Industrial Market Vacancy Remains above 9% for Q12025
DFW’s industrial market vacancy rose to 9.2% in Q1 2025, according to CoStar Group, primarily driven by an oversupply of space. Of the 115 million square feet delivered since 2023, 40% remains unoccupied. Vacancy rates are expected to stay above 9% throughout 2025.
Currently, 30 million square feet of industrial space are under construction and slated for delivery in 2025—a sharp decline from the significantly higher construction levels in 2022 and 2023, which were double or more. With new supply slowing due to high borrowing costs, we remain optimistic that vacancy rates will begin to decline by mid-2026.
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The Dallas–Fort Worth multifamily market posted a vacancy rate of 11.7% in May 2025, according to Costar Group—well above the 10-year average of 8.5%.
Consumer Prices in Dallas–Fort Worth–Arlington Fall 0.4% Over Two Months Ending March 2025
