By: Courtney Stanford (Dunn), CCIM & SIOR Member Associate
The DFW industrial market is expected to remain strong in 2023, despite some challenges. Rising interest rates and an economic slowdown could impact the market, but strong tenant demand and the possibility of declining interest rates should help to
offset these challenges.
In addition to these challenges, there are also some opportunities in the DFW industrial market. One opportunity is the growing demand for mixed-use development. Mixed-use development combines commercial, residential, and retail space, and it is becoming increasingly popular in DFW. Another opportunity is the increasing demand for e-commerce space. As more and more people shop online, there is a growing need for warehouses and distribution centers to store and ship goods.
I have been engaged in a lot of leasing activity this year, as businesses continue to expand their operations. This has led me to work closely with a local development group to market several mixed-use sites in high growth areas. I believe that this is a strategic move, as mixed-use development is becoming increasingly popular in DFW.
I predict that we will begin to see a softening of the industrial market in the second halfof the year. This is because rates are beginning to stabilize, and more inventory is becoming available. However, I believe that the DFW industrial market will remain strong overall in 2023. Here are some additional details about the challenges and opportunities in the DFW industrial market:
- Challenges: Rising interest rates:
- Rising interest rates are making it more expensive to
borrow money, which could slow down demand for industrial real estate. - Economic slowdown: The Texas economy’s modest expansion appears to be slowing despite having some pockets of strength. This could lead to a decrease in demand for industrial space.
- Rising interest rates are making it more expensive to
- Opportunities:
- Strong tenant demand: The demand for industrial space is still strong, as businesses continue to expand their operations.
- Mixed-use development: There is a growing demand for mixed-use development, which combines commercial, residential, and retail space.
- E-commerce space: The demand for e-commerce space is increasing, as more and more people shop online.
I believe that the DFW industrial market is well-positioned to weather the challenges that lie ahead. The strong tenant demand and the growing opportunities in mixed-use development should help to keep the market strong in 2023.
Courtney Stanford (Dunn), CCIM is a Managing Director at SVN Dunn Commercial where she facilitates the acquisition, deposition, and leasing of industrial properties in the Mid-Cities market of
Dallas-Fort Worth. In addition to her role as a producer, Courtney also assists with the management and strategic direction of the firm. Courtney recently joined the SIOR North Texas Chapter this year as a Member Associate. For more information about Courtney and/or SVN Dunn Commercial please visit www.dunncommercial.com.