A tightening industrial vacancy rate and a diminishing development pipeline have pushed Dallas-Fort Worth to the upper echelon of U.S. warehouse and logistics markets. 

Marcus & Millichap ranked DFW No. 3 on its new 2026 National Industrial Index as private investors have fueled metrowide transaction growth. Trading increased by around 40% year-over-year through the first quarter in DFW, thanks to a nearly 50% increase in transactions in the $1M to $10M range.

The national brokerage firm attributed that increase to DFW’s rising long-term investment demand due to the region’s robust employment growth, growing leasing momentum and diminishing supply. 

Courtesy of CapRock Partners

CapRock Partners broke ground on the 250K SF McKinney Air Business Park near the McKinney National Airport earlier this year.

“DFW is seen across the nation as a hub [for employment], with a diversified economy, massive population growth, good infrastructure,” Marcus & Millichap Senior Managing Director of Investments Adam Abushagur said of the factors that play into investors’ confidence in the metro. “We’ve been less affected by this cycle compared to a lot of other markets across the U.S, such as an LA, a New York and so on.”

Charlotte and Orlando, Florida, topped the industrial index, and the rest of the top 10 was filled out by Sun Belt and Midwest cities with a strong supply-demand balance, while Los Angeles and New York City were at Nos. 20 and 21, respectively. The declining development pipeline has tempered vacancy risks in DFW and many Sun Belt and Midwest markets, according to Marcus & Millichap’s 2026 Industrial Investment Midyear Outlook.

Marcus & Millichap projected DFW will add around 40,000 net new jobs in 2026. That employment growth, coupled with the region’s expanding population, is fueling just about all project types in the region, Abushagur said. 

For the industrial sector, employment and population growth mean more warehouse space is needed as more products need to be manufactured and delivered. Plus, more small businesses are occupying shallow-bay spaces, which is also contributing to the region’s tightening vacancy rate. 

DFW completions are projected to hit their lowest level since 2013, pushing the sector’s vacancy rate down to 8.9% in the first quarter. That’s the region’s lowest rate in three years.

Industrial demand has been strong in DFW for several years, but investors’ appetites have shifted away from the smaller infill assets that had been most popular, according to Trey McGhin, a principal at the land brokerage and investment firm Dosch Marshall Real Estate.

“Over the last 12 months, institutional equity has really returned for the industrial development market, and that, coupled with the tightening vacancy rates and supply being at a lower point, groups are now … really trying to pursue bigger product again,” McGhin said.

That has led to investors making deals in the higher-growth areas of the metro have more available land for development. Areas like Denton, South Dallas, Rockwall, Royce City, Terrell, Forney and Waxahachie are seeing renewed demand because of the desire to build 500K SF to 1M SF facilities, McGhin said.

McKinney has emerged as the hottest industrial market in DFW over the last year. Despite having one of the smallest industrial footprints in the region, it boasts some of DFW’s highest rents, thanks to tremendous growth around the expanding McKinney National Airport.

While McGhin expects demand to remain strong in the submarket, many of the best deals have already been done. 

“You’re starting to get to the point where a lot of those McKinney opportunities are more picked over,” McGhin said. “They still exist, but there’s definitely going to be more push to be on sort of the east side of the airport.”

Developers have also moved north of McKinney to the emerging city of Melissa for industrial opportunities, according to McGhin. 

The Fort Worth logistics corridor, northeast Dallas and the South Stemmons submarket are also expected to continue attracting investor attention this year, Marcus & Millichap reported. 

Abushagur attributed the increased investor confidence in DFW to the region’s status as a steady market on the national scene. McGhin said the return of institutional equity has also boosted investor confidence in getting deals capitalized. 

“When times are tough, it’s a lot easier to find $15M from a capital group than it is to go find $40M from a capital group,” McGhin said. “With the leasing being stronger, vacancy being tighter … and there just being more liquidity in the industrial capital markets, all of that is leading to more and larger deal activity.”

Surging demand for build-to-rent projects has pushed Texas to the top of the nation for home rental construction in the pipeline, with Dallas-Fort Worth at No. 2 among all large metros based on the same metric.  

Courtesy NexMetro Communities

NexMetro Communities’ Avilla Boat Club rental community is located in Fort Worth.

The Lone Star State’s total of nearly 22,000 BTR projects on the way is over 56% higher than Arizona, which is the next closest state with nearly 14,000 projects in the pipeline.

The only metro to surpass DFW’s almost 8,500 home rental projects under construction was Phoenix, which has more than 13,000 BTR projects in the works, according to an analysis from Point2Homes using data from Yardi Matrix. 

Texas’ three other largest metros each placed in the national top 10 for under-construction projects of the multifamily housing option that feels more like single-family residential. Houston was at No. 5 in the nation with more than 4,600 BTR projects under construction, followed by Austin at No. 6 with 4,300-plus units on the way and San Antonio at No. 8 with nearly 3,000.

“As urban areas become more congested and expensive, there’s a growing trend towards suburban living,” Yardi Matrix Manager of Business Intelligence Doug Ressler said in a statement. “BTR properties in suburban areas offer more space and affordability while maintaining connectivity to urban centers.”

The biggest chunk of BTR projects under construction in DFW are Fort Worth’s more than 1,800 rental homes in the pipeline, CultureMap Dallas reported. More than a third of those will be part of Living Fully Orchard Farms development in Fort Worth.

McKinney has nearly 1,300 units on the way, the only other city close to Fort Worth’s total, though Princeton and Melissa also have huge BTR communities on the horizon. Oxenfree at Princeton will feature more than 400 BTR units, while Wolf Creek Farms will bring nearly 350 units to Melissa. 

The state’s strong job market, openness to remote work and business-friendly climate were cited as reasons for the growth of BTR in Texas. BTR’s affordability was also a factor, as Ressler said renters can save around $1,000 per month compared to elevated home prices and high mortgage rates. 

“The biggest hurdle to buying a home for BTR residents is high mortgage rates, so BTR homes provide an affordability solution in today’s increasingly expensive housing market,” Ressler said. “On average, renting a BTR unit is cheaper than buying a starter home.”

Atlanta’s nearly 7,000 BTR projects on the way placed it at No. 3 in the nation, followed by Charlotte at No. 4 with more than 5,300 units in the pipeline.