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Dallas-Fort Worth ended 2025 as the strongest industrial real estate market in the United States, powered by surging leasing activity and steadily tightening vacancy, according to a new fourth-quarter report from JLL.
The region posted nearly 25 million square feet of net absorption for the year, marking the seventh consecutive year DFW has exceeded 20 million square feet — a feat unmatched by any other U.S. market. Only five markets nationwide recorded more than 10 million square feet of positive absorption in 2025.
Momentum accelerated late in the year. Fourth-quarter leasing totaled 15.6 million square feet, the highest quarterly volume since mid-2021. Big-box deals dominated activity, including four leases larger than 1 million square feet, underscoring the region’s continued appeal to logistics, distribution, and manufacturing users.
South Dallas emerged as a standout submarket, capturing three of those million-plus-square-foot deals. Availability in the area has fallen nearly 10 percentage points since early 2023, reflecting sustained tenant demand and limited large-block options.
While development picked up modestly, construction activity remained close to historical norms. Approximately 27.3 million square feet was under construction at year’s end, with 26.6% preleased, signaling measured optimism from developers following the post-pandemic building boom.
Vacancy declined for the fifth consecutive quarter, even as new deliveries continued to hit the market in select submarkets. Asking rents trended higher, reinforcing landlord confidence and the region’s pricing power.
Analysts say Dallas-Fort Worth’s central geography, deep transportation infrastructure, and diversified economy continue to insulate it from broader national slowdowns — positioning the metro for continued industrial strength heading into 2026.