PlaceMKR sees opportunity in functional older DFW industrial buildings
XLRE•PlaceMKR sees investment opportunities in functional older Dallas-Fort Worth industrial buildings as vacancy fell to 7.3% in the third quarter and new construction became harder to justify with the 10-year Treasury near 5%.
1. Older buildings draw interest
PlaceMKR sees opportunities in functional older Dallas-Fort Worth industrial buildings as new supply tightens, favoring tenant suitability over building age. Buildings under 20 years old captured all 115 million square feet of net new demand since 2023, while older properties lost occupancy.
2. Vacancy and construction costs
DFW industrial vacancy fell to 7.3% in the third quarter, its lowest in three years, reducing tenants’ options for new buildings. With the 10-year Treasury near 5%, new construction is harder to justify, strengthening the investment case for functional buildings bought below replacement cost. Smaller, well-located older properties face limited replacement supply, while buildings mismatched with local tenant demand remain vulnerable.
