IRR-Fort Worth Mid-Year Viewpoint 2015 Local Market Report - Industrial
The Fort Worth industrial property sector continues to strengthen, resulting from a strong local economy with high employment, steady population growth, and expanding business. Rental rates are increasing for both warehouse/distribution space and flex space properties. This trend should continue through the end of 2015. Overall absorption has been positive since 2010 and demand indicates this will continue even with an estimated 4.5 million square feet of new industrial space planned within the greater Fort Worth area.
Cap rates declined slightly over the previous year but should see little variation through the remainder of 2015. Discount rates remained fairly steady over the past year but 2016 will likely see a slight decrease in discount rates. The North Fort Worth submarket continues to be a hot spot for industrial development, with a 650,000 square-foot distribution facility opening in the Railhead Industrial Park.
AllianceTexas, also located in north Fort Worth, is an 18,000-acre master-planned, mixed-use community that is home to the Alliance Global Logistics Hub. The Alliance Global Logistics Hub is an inland port that offers multi-modal transportation access and includes Fort Worth Alliance Airport. Hillwood Properties recently completed several buildings in AllianceTexas, including a one million-square-foot warehouse for LG Electronics and a one million-square-foot speculative distribution center. One of the largest industrial projects currently underway is a 950,000 square foot project at NorthPort 35 Business Center in Northlake. General Motors recently announced plans for a $1.2 billion expansion of their Arlington assembly plant, a move that could bring 600 additional jobs to the facility. The strengthening local economy, population growth, and increased construction should continue to drive the expansion of the Fort Worth industrial market.
Download the full version PDF of this Local Market Report below to see the charts, graphs, and tables not included above.
IRR Mid-Year Viewpoint 2015 comprises a National Overview report and 300+ two-page Local Market Reports for all key property types as well as additional resources, including metrics methodology, graphs, and tables; these free reports may be downloaded from IRR’s site here.