That being said, the market still has a few hurdles to
overcome before achieving potentially robust growth. While recent forecasts project that the D-FW market
will experience rising demand across a wide range of commercial real estate
sectors in the comings years, demand in the industrial market is expected to
remain steady or even decline slightly. This is due, in part, to the fact that
many current developments will not be completed for an extended period of time.
Regardless, demand within the industrial market is already higher than it was
in 2013, indicating that what we’re seeing is far from stagnation.
A recent report from Dallas Magazine is slightly more bullish in
its view of the industrial market. The piece notes several converging factors
that seem to lean in the market’s favor: the growth of e-commerce, a strong
local labor market, and pent-up demand finally seeing a prospect of resolution.
Most notably, South Dallas is experiencing strong growth within the industrial
sector, with Alliance also named a potential hot-spot for the next wave of
industrial expansion.
Despite this great potential, there are plenty of potential
pitfalls that could be fallen into. For example, the piece from Dallas Magazine
points to the need for infrastructure investment if development is to continue
at its current pace. Similarly, rising construction costs are cited as another
potential limiter of development. These issues shouldn’t be overblown--after
all, all signs point to a healthy market in the coming years. Regardless, these
forces are shaping the market in ways that must be observed and accounted for.
