Dallas-Fort Worth Warehouse Market Report 2025: Your Guide to North Texas Industrial Space
Last Updated: January 2025
If you’re looking for warehouse space in Dallas-Fort Worth, you’ve picked the right time – and arguably the right market in the entire country. DFW is experiencing a perfect storm of population growth, corporate relocations, and infrastructure advantages that make it one of the most dynamic industrial markets we’re tracking at WareCRE.
Let me walk you through what’s really happening on the ground here, beyond just the headlines about companies fleeing California. Whether you’re a small business owner trying to find your first warehouse or a broker helping clients navigate this market, here’s what you need to know.
Why Dallas-Fort Worth is Having Its Moment
MARKET SNAPSHOT: DFW WAREHOUSE FACTS
- Average Lease Rate: $9.54/sq ft (Q4 2024 actual)
- Total Industrial Inventory: 516.2 million sq ft
- Current Vacancy: 9.6% (up from 3.7% but still healthy)
- Small Business Ranking: #1 nationally for employment growth (Paychex Index: 102.62)
- Population Growth: 120,000+ new residents annually
- Market Reach: 98% of the US is accessible within 48 hours by rail
The numbers tell part of the story, but here’s what they mean for you: DFW has become the corporate relocation capital of America, and it’s not just about taxes. We’re seeing companies vote with their feet, bringing their supply chains with them. The financial sector alone added 59,200 jobs since 2019 – they’re calling it the “Wall Street of the South” for a reason.
Many of our clients are surprised to learn that they can still find quality space here without the sticker shock of coastal markets. You’re looking at roughly half the cost of Los Angeles warehouse space, but with better highway access and no state income tax eating into your margins.
The Submarkets That Matter Most
Alliance/North Fort Worth
This is Texas-sized thinking at its finest. The Alliance corridor, anchored by the BNSF intermodal facility, has become the go-to location for major distribution centers. If you need rail access or you’re shipping nationally, this is your spot. Expect to pay a premium – rates here run $10-12/sq ft – but the infrastructure is unmatched. DHL just dropped $57.5 million on a 220,000 square foot facility here, which tells you where the smart money is going.
Alliance Texas just announced its $130 billion regional economic impact over 35 years, with $10.2 billion generated in 2024 alone. The development received an $80 million federal INFRA grant to double inland port activity. New construction includes the 1.1 million square foot Alliance Westport 24 facility, which will come online by Q4 2025.
South Dallas
Don’t overlook South Dallas if you’re cost-conscious. The I-20 and I-45 corridors offer some of the best value in the metroplex at $7-9/sq ft. Yes, the buildings tend to be older, but if you need functional space without the bells and whistles, this is where to look. Plus, you’re still within 30 minutes of downtown.
Great Southwest/Arlington
The area between Dallas and Fort Worth is experiencing a renaissance. With both airports nearby and excellent highway access, rates here ($8.50-10.50/sq ft) split the difference between premium and value. We’re seeing lots of e-commerce operations set up here – close enough to population centers for last-mile delivery but affordable enough to make the math work.
Lewisville/Carrollton
North of Dallas proper, these submarkets offer a sweet spot for businesses that need a mix of warehouse and office space. The workforce here is educated and stable, making it ideal if you’re running a technical operation or need skilled warehouse workers. Expect $9-11/sq ft.
What Small Businesses Need to Know
Let’s be real – as a small business, you’re not competing for the same 500,000 square foot distribution centers that Amazon is building. But that’s actually good news. While the big players duke it out for massive facilities, there’s plenty of 10,000-50,000 square foot spaces available if you know where to look.
Your advantages in this market:
- Flexibility – Landlords are more willing to negotiate on smaller spaces
- Location options – You can afford to be pickier about proximity to your customers
- Workforce – At $18.22/hour average, you can attract quality workers without breaking the bank
- Growth potential – Start small and expand; there’s room to grow here
Watch out for:
- Competition is fierce – Good spaces go fast. If you like it, move quickly
- Traffic is real – Factor in commute times for your workforce
- Summer heat – Budget for higher cooling costs May through September
- Property taxes – Texas makes up for no income tax with property taxes; factor this into your lease
The Corporate Migration Effect
You can’t understand DFW’s warehouse market without discussing the corporate exodus from high-cost states. When Charles Schwab, McKesson, and CBRE move their headquarters here, they bring ecosystems with them. Every corporate headquarters needs suppliers, vendors, and service providers, all of whom need warehouse space.
We’re tracking 1,368 economic development projects statewide in 2024. That’s not a typo. The state is throwing $870 million in incentives over five years to keep this momentum going. What this means for warehouse users: sustained demand, gradual rent increases, and a constantly improving business environment.
Recent wins include Verily Life Sciences (an Alphabet subsidiary) moving its headquarters to Dallas and doubling its workforce to 120+ employees, and Raising Cane’s establishing a regional office in Plano with 1,000+ jobs. The market was ranked the #1 commercial real estate market for 2025 by PwC/Urban Land Institute.
Real Numbers from Real Deals
Q4 2024 Major Transactions:
- Google: 2.2 million sq ft across two leases at Silver Creek Business Park (data center equipment)
- CJ Logistics: 1,075,260 sq ft at SouthPort Logistics Park
- Dick’s Sporting Goods: 800,000 sq ft pre-lease in South Fort Worth
- USPS: 636,480 sq ft sublease at Pinnacle Park
- Rates range: $6.50 NNN (North Fort Worth) to $17.46/sq ft (Northwest Dallas Outlying)
Looking Ahead: What’s Coming in 2025-2026
The Texas Economic Development Corporation projects continued 3-4% annual growth, outpacing the national average. Here’s what that means for the warehouse market:
The Good:
- The construction pipeline is healthy but not overbuilt
- Infrastructure investments continuing (roads, rail, airports)
- Workforce growing with population influx
- Technology sector diversifying beyond traditional Texas industries
The Challenges:
- Vacancy will likely stay tight, keeping upward pressure on rents
- Construction costs remain elevated, limiting speculative building
- Water resources are becoming a bigger conversation (especially for manufacturing)
- Traffic infrastructure is struggling to keep pace with growth
Making Your Move: Practical Next Steps
If you’re a small business owner:
- Start your search 6-9 months before you need space
- Get pre-qualified for financing or have proof of funds ready
- Work with a broker who knows the submarkets (seriously, DFW is huge)
- Consider starting with a sublease to test the market
- Factor in the total occupancy cost, not just base rent
If you’re a broker:
- Emphasize speed – this market moves fast
- Show multiple options in different submarkets
- Highlight transportation advantages specific to each location
- Connect clients with local incentive programs
- Build relationships with ownership groups, not just listing agents
- 30% of significant DFW industrial deals now require heavy power capacity compared to less than 5% a decade ago
The Bottom Line
Dallas-Fort Worth offers something increasingly rare in major metros: room to grow at a reasonable cost. Yes, it’s getting more expensive. Yes, competition is heating up. But compared to coastal markets, this is still the land of opportunity for small businesses needing warehouse space.
The combination of no state income tax, central location, excellent infrastructure, and a pro-business environment makes DFW arguably the best risk-adjusted warehouse market in the country right now. Corporate relocations validate this thesis, but the real proof is in the small business growth, up 14.6% in warehouse employment projected through 2034.
