Dallas-Fort Worth stands as the undisputed leader in U.S. industrial real estate, ranking first among all commercial real estate markets for two consecutive years. With 26.4 million square feet of net absorption in 2025 and over $5.6 billion in industrial sales, DFW continues to attract logistics operators, manufacturers, and investors at a pace no other metro can match. For borrowers looking to acquire, refinance, or develop industrial properties in this market, understanding the financing landscape is essential to capitalizing on the opportunity.
This guide breaks down everything you need to know about securing industrial loans in Dallas, from current rates and loan programs to submarket-level insights that lenders evaluate when underwriting deals.
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What Makes Dallas the Top Industrial Market in the Country?
Dallas-Fort Worth leads the nation in industrial real estate by nearly every metric that matters. The metro recorded 26.4 million square feet of positive net absorption in 2025, the first year since 2021 that annual demand exceeded new deliveries. Leasing activity reached 16.2 million square feet across the year, making it the fourth-strongest annual leasing volume in the past six years.
The investment side tells an equally compelling story. DFW recorded more than $5.6 billion in industrial property sales through November 2025, leading all U.S. markets and representing a 33% increase from the same period in 2024. A total of 326 facilities encompassing 56.2 million square feet changed hands during that span.
Several structural advantages drive this dominance. DFW sits at the geographic center of the country, served by three Class I railroads (BNSF Railway, Union Pacific, and Kansas City Southern). The International Inland Port of Dallas (IIPOD) spans 7,500 acres in southern Dallas County, anchored by Union Pacific's intermodal terminal in Wilmer. Amazon operates multiple fulfillment centers across the metro, including facilities near Alliance Airport in Fort Worth and along the LBJ Freeway corridor. The region's population growth (adding roughly 100,000+ residents annually) fuels last-mile delivery demand that keeps warehouse occupancy strong.
For lenders, these fundamentals translate to lower risk. Industrial loans in Dallas benefit from deep tenant demand, strong rent growth, and a diversified economic base that insulates the market from single-industry downturns.
What Types of Industrial Properties Qualify for Financing in Dallas?
Dallas industrial loans cover a broad range of property types. Lenders evaluate each category differently based on tenant demand, functional obsolescence risk, and income stability. Here is a breakdown of the primary industrial property types financed in the DFW market.
Warehouse and distribution centers represent the largest segment of the Dallas industrial market. These facilities typically range from 50,000 to over 1 million square feet, featuring 28- to 40-foot clear heights, dock-high loading doors, and trailer parking. DFW's warehouse vacancy stood at 10.1% in Q4 2025, with asking rents averaging $9.33 per square foot annually for warehouse and distribution space.
Manufacturing facilities include properties built for production, assembly, or processing operations. These assets often feature specialized infrastructure such as heavy power capacity, reinforced flooring, overhead cranes, and ventilation systems. Lenders may apply slightly higher underwriting scrutiny to manufacturing properties due to the single-use nature of improvements.
Flex and light industrial buildings combine office, showroom, and warehouse space under one roof. These properties typically range from 5,000 to 50,000 square feet and appeal to small businesses, contractors, and service companies. Flex properties in Dallas submarkets like Garland, Mesquite, and Richardson maintain strong occupancy due to limited new supply.
Cold storage and food processing facilities have grown in demand as grocery delivery and meal kit companies expand their DFW footprint. These specialized properties command premium rents but require higher capital expenditures for refrigeration and climate control systems.
Data centers represent a rapidly growing industrial subcategory in DFW. Lancaster alone is seeing a 550-megawatt campus under construction by Yondr Group, and lenders are developing specialized financing products for this asset class.
What Are Current Dallas Industrial Loan Rates and Terms?
Industrial loan rates in Dallas vary based on the loan program, property type, borrower experience, and leverage. As of early 2026, borrowers have access to several competitive financing structures.
Conventional commercial mortgages from banks and credit unions offer rates starting in the mid-5% range for stabilized industrial properties with strong tenancy. These loans typically provide 65-75% loan-to-value (LTV) with 20- to 25-year amortization and 5- to 10-year terms. Borrowers with existing banking relationships in DFW often secure the most favorable pricing through these channels.
CMBS (conduit) loans offer non-recourse financing starting around 6.0-6.5% for qualifying industrial assets. These loans provide higher leverage (up to 75% LTV) and longer fixed-rate periods, making them attractive for investors who prioritize cash flow certainty. CMBS lenders typically require a minimum loan amount of $2-5 million.
SBA 504 loans remain a powerful option for owner-occupants of industrial properties. The program provides up to 90% financing with below-market fixed rates on the CDC portion (currently in the 5.5-6.0% range). For a Dallas manufacturer or distributor purchasing their own facility, SBA 504 loans deliver the lowest down payment requirement in the market.
Bridge loans serve borrowers who need to move quickly on acquisitions, fund lease-up of vacant industrial space, or finance value-add renovations. Bridge rates in Dallas typically range from 8-12% with 12- to 36-month terms and interest-only payments. These programs are critical in a competitive market where sellers expect fast closings.
DSCR-based loans focus on property cash flow rather than borrower income, making them ideal for investors scaling their industrial portfolios. Learn more about how DSCR financing works and use our DSCR calculator to estimate your qualifying metrics.
How Do Lenders Evaluate Dallas Industrial Submarkets?
Not all Dallas industrial locations carry equal weight in the eyes of lenders. Underwriters assess submarket fundamentals including vacancy rates, tenant depth, rental trends, and infrastructure access when sizing loans. Understanding these dynamics helps borrowers position their deals for optimal financing.
The South Dallas and I-20 Corridor has emerged as the metro's primary growth engine for large-scale logistics development. Anchored by the International Inland Port of Dallas and Union Pacific's intermodal facility, this submarket has attracted over 22 million square feet of planned industrial development. End users seeking east-west distribution leverage Interstate 20's connectivity, while the proximity to the BNSF intermodal yard adds rail-served optionality. Lenders view stabilized assets here favorably but may apply higher reserves for speculative new construction given the volume of pipeline supply.
The DFW Airport Corridor benefits from proximity to one of the world's busiest cargo airports. Recent infill industrial projects near the airport target tenants needing air freight access, and the constrained land supply in this submarket supports strong rent growth. Lenders typically offer the most aggressive terms for well-located airport corridor properties.
Alliance and North Fort Worth, developed largely by Hillwood (the Perot family's development company), represents one of the nation's premier master-planned logistics parks. Alliance Airport serves as Amazon's regional air hub, and Hillwood broke ground on two speculative buildings totaling over 1.1 million square feet at AllianceTexas in late 2025. The institutional quality of this submarket attracts competitive financing from national lenders.
Garland, Mesquite, and the Eastern Suburbs offer a mix of older flex and light industrial properties alongside newer distribution facilities. These submarkets appeal to smaller tenants and owner-occupants. Lenders often see stable cash flows here due to limited new supply and diverse tenant bases, making these areas strong candidates for SBA and conventional financing.
Lancaster and Southern Dallas County are attracting significant attention from data center developers and large-scale logistics operators. The Yondr Group's 550 MW data center campus in Lancaster signals a new wave of industrial investment. For traditional warehouse and distribution borrowers, land costs in this submarket remain among the most competitive in the metro.
Midlothian and Ellis County sit along the US-67 and US-287 corridors south of I-20, offering industrial sites with proximity to both Dallas and Fort Worth. Midlothian's growing infrastructure and labor pool make it an increasingly attractive location for manufacturing tenants seeking lower-cost alternatives to core DFW submarkets.
Forney and Eastern Dallas County represent the next frontier for DFW industrial development. Amazon has announced fulfillment center plans east of the metroplex, and the I-20 corridor through Forney provides highway access for regional distribution. Lenders are becoming more comfortable underwriting deals in this submarket as tenant demand builds.
What Does the Dallas Industrial Construction Pipeline Look Like?
The DFW construction pipeline remains the largest in the nation, and borrowers seeking construction or acquisition financing need to understand how new supply affects their underwriting.
As of Q4 2025, approximately 24.1 million square feet of industrial space was under construction across 96 properties in the DFW market. Construction starts through November 2025 totaled 21.1 million square feet across 84 facilities. DFW accounted for roughly one-third of Texas's total commercial square footage under construction.
Major projects in the pipeline include DICK's Sporting Goods' 800,000-square-foot regional distribution center at Hillwood's Risinger/35 Logistics Park (scheduled for early 2026 completion), Trammell Crow and PGIM's Lake Vista Technology Park in Lewisville (316,000 square feet across three buildings), and continued expansion at AllianceTexas.
However, the market is absorbing this supply effectively. Q4 2025 marked the first quarter where annual demand exceeded new deliveries since 2021, pushing vacancy down 60 basis points year-over-year to 9.2%. This tightening dynamic is critical for borrowers: lenders gain confidence when absorption outpaces deliveries, which supports more favorable loan terms.
For construction loan borrowers, lenders will scrutinize the specific submarket's supply pipeline. Areas like South Dallas with 22+ million square feet in the planning stages may face stricter pre-leasing requirements, while infill submarkets near the airport corridor may receive more favorable construction financing due to supply constraints.
How Should Borrowers Approach the Dallas Industrial Loan Process?
Securing an industrial loan in Dallas follows a structured process, but borrowers who prepare thoroughly can compress timelines and improve their terms. Here is the step-by-step approach.
Start with a thorough property analysis. Gather rent rolls, operating statements (trailing 12 months minimum), lease abstracts, environmental reports (Phase I at minimum), and property condition assessments. For Dallas industrial properties, lenders will pay particular attention to clear height specifications, loading dock configurations, trailer parking ratios, and proximity to major transportation infrastructure.
Determine your optimal loan program. Owner-occupants should evaluate SBA 504 loans for maximum leverage at the lowest rates. Investors acquiring stabilized properties should compare conventional bank loans against CMBS options. Value-add investors renovating or re-tenanting industrial space will likely need bridge financing before transitioning to permanent debt.
Prepare a market-aware loan package. Include a submarket analysis showing vacancy trends, comparable rents, and tenant demand drivers specific to your property's location. In Dallas, referencing the major logistics operators, intermodal facilities, and e-commerce fulfillment centers in your submarket strengthens the narrative for lenders.
Engage lenders who understand DFW industrial. National CMBS shops, regional banks with Texas CRE divisions, and specialized industrial lenders will each offer different advantages. Working with an experienced commercial mortgage broker can help you access multiple capital sources simultaneously.
Use our commercial mortgage calculator to model different scenarios and understand how rate, term, and amortization affect your debt service coverage and cash-on-cash returns.
What Key Metrics Do Lenders Analyze for Dallas Industrial Loans?
Lenders underwriting industrial loans in Dallas focus on several core metrics that determine loan sizing, pricing, and structure.
Debt Service Coverage Ratio (DSCR) measures whether the property's net operating income can comfortably cover the annual mortgage payment. Most conventional lenders require a minimum 1.25x DSCR for industrial properties, meaning the property generates $1.25 in NOI for every $1.00 in debt service. CMBS lenders may accept 1.20x for strong Dallas locations. Use our DSCR calculator to run your numbers.
Loan-to-Value (LTV) compares the loan amount to the appraised property value. Industrial loans in Dallas typically max out at 65-75% LTV for conventional programs and up to 90% for SBA 504 (owner-occupied). Bridge lenders may go to 80% of as-is value or 65-70% of after-renovation value.
Cap rates in the Dallas industrial market averaged 6.4% for properties sold in 2025, with Class A assets trading at cap rates as low as 4.84% and Class C properties at 6.71%. Lenders use cap rates to validate appraised values and assess going-in yields relative to debt costs.
Tenant creditworthiness matters significantly for industrial loans. Properties leased to investment-grade tenants like Amazon, FedEx, or major retailers can qualify for more aggressive financing terms. Multi-tenant properties with diverse rent rolls also perform well in underwriting due to reduced concentration risk.
Lease term and structure affect how lenders view income stability. Triple-net (NNN) leases with long remaining terms (7+ years) receive the most favorable treatment. Properties with near-term lease expirations or gross leases that expose the borrower to operating expense volatility may face tighter underwriting.
What Industrial Market Trends Should Dallas Borrowers Watch in 2026?
Several trends are shaping the Dallas industrial financing landscape heading into 2026 and beyond.
The e-commerce fulfillment buildout continues to drive demand for modern, high-clear-height warehouse space. Amazon, Thrive Market, and other major e-commerce operators signed significant leases in DFW during 2025, and the trend shows no signs of slowing. Properties with 32-foot-plus clear heights, ESFR sprinkler systems, and ample trailer parking command premium rents and attract the most competitive financing.
Data center development is reshaping the southern Dallas County industrial landscape. The convergence of available power, land, and fiber connectivity is drawing hyperscale operators and colocation providers to areas like Lancaster and Midlothian. While data center financing differs from traditional industrial loans, the economic spillover benefits neighboring warehouse and distribution properties.
Reshoring and nearshoring are bringing manufacturing operations back to North America, and DFW's central location, labor availability, and transportation infrastructure make it a prime beneficiary. Industrial properties with heavy power capacity, reinforced floors, and manufacturing-grade HVAC systems are seeing renewed demand from companies diversifying supply chains away from overseas production.
Rent growth continues to push asking rates higher. DFW industrial rents hit an all-time high of $10.01 per square foot in Q4 2025, up 4.8% year-over-year. This growth trajectory supports higher property valuations and improved DSCR metrics, both of which benefit borrowers seeking industrial loans.
Interest rate stabilization is expected through 2026 as the Federal Reserve continues gradual rate adjustments. The 10-year Treasury yield is projected to remain above 4%, keeping long-term fixed rates in the mid-5% to low-7% range depending on the loan program. Borrowers should lock rates when terms are favorable rather than waiting for further rate compression.
What Are Common Mistakes to Avoid When Financing Dallas Industrial Properties?
Borrowers in the Dallas industrial market can avoid costly missteps by understanding what lenders scrutinize and where deals commonly fall apart.
Underestimating environmental risk is a frequent issue, particularly for older manufacturing properties in established Dallas corridors. Phase I environmental site assessments are required by virtually all lenders, and properties with recognized environmental conditions (RECs) may need Phase II testing, which can delay closings by 4-8 weeks. Budget for environmental due diligence early in the process.
Ignoring submarket supply dynamics can lead to overvaluation. A property in South Dallas near the I-20 corridor may appraise differently depending on how much competitive supply is under construction or planned nearby. Borrowers should present a submarket supply analysis that demonstrates how their property is positioned relative to the pipeline.
Overlooking functional obsolescence in older properties trips up many buyers. Industrial facilities built before 2000 often have inadequate clear heights (under 24 feet), insufficient dock doors, limited trailer parking, or outdated electrical systems. Lenders will discount the value of functionally obsolete improvements, and borrowers should factor renovation costs into their acquisition budgets.
Failing to account for property tax increases is particularly relevant in Texas, where property taxes are among the highest in the nation and there is no state income tax. Dallas County industrial properties can see significant assessment increases after a sale, which directly impacts NOI and DSCR calculations. Experienced lenders will underwrite to projected tax assessments rather than trailing actuals.
What Are the Most Common Questions About Dallas Industrial Loans?
What is the minimum loan amount for a Dallas industrial property? Most conventional lenders set minimum loan amounts at $500,000 to $1 million for industrial properties. CMBS lenders typically require $2-5 million minimums. SBA 504 loans start at lower thresholds and can work for owner-occupied properties valued as low as $500,000, making them accessible for small manufacturers and distributors in suburban Dallas submarkets.
How long does it take to close an industrial loan in Dallas? Conventional bank loans typically close in 45-60 days. CMBS loans require 60-90 days due to additional third-party reports and rating agency requirements. SBA 504 loans may take 60-90 days depending on SBA processing times. Bridge loans can close in as few as 14-21 days, which gives buyers a competitive advantage in the fast-moving DFW market where sellers favor certainty of execution.
Can I finance a vacant industrial property in Dallas? Yes, but your options narrow significantly. Bridge lenders are the primary source for financing vacant industrial buildings, typically offering 60-70% LTV with 12-24 month terms and interest-only payments. The loan structure assumes the borrower will lease up the property and refinance into permanent debt. Strong borrower experience, a credible leasing plan, and a well-located property are essential for vacant industrial financing.
Do I need a personal guarantee for a Dallas industrial loan? Conventional bank loans almost always require personal guarantees (full recourse). CMBS loans are non-recourse with standard carve-outs for bad acts (fraud, environmental contamination, bankruptcy filing). SBA loans require personal guarantees from anyone owning 20% or more of the business. Some portfolio lenders may offer partial or limited recourse structures for experienced borrowers with strong track records.
What environmental assessments are required for Dallas industrial loans? All institutional lenders require a Phase I Environmental Site Assessment (ESA), which reviews historical property use and identifies potential contamination risks. If the Phase I reveals recognized environmental conditions, a Phase II ESA involving soil and groundwater testing will be required. Properties with prior manufacturing, chemical storage, or fuel operations are most likely to trigger Phase II requirements. Budget $2,000-5,000 for Phase I and $10,000-50,000+ for Phase II if needed.
How do Texas property taxes affect industrial loan underwriting? Texas has no state income tax, but property tax rates in Dallas County typically range from 2.0-2.5% of assessed value annually. Lenders underwrite to the projected post-sale tax assessment, not the current owner's basis. A property purchased for $10 million with a 2.3% tax rate would owe approximately $230,000 in annual property taxes. This expense directly reduces NOI and DSCR, so borrowers should model realistic tax projections when evaluating loan feasibility.
Ready to Finance Your Dallas Industrial Property?
The Dallas-Fort Worth industrial market offers some of the strongest fundamentals in the country for warehouse, distribution, and manufacturing property investments. With record-setting absorption, rising rents, and a robust tenant base anchored by e-commerce and logistics operators, the opportunity for well-capitalized borrowers is significant.
Whether you are acquiring a stabilized warehouse along the I-20 corridor, developing a build-to-suit facility near Alliance Airport, or refinancing a manufacturing property in Garland, the right financing structure can make the difference between a good investment and an exceptional one.
Contact our commercial lending team to discuss your Dallas industrial financing needs. We work with borrowers across all property types and loan sizes, connecting you with the capital sources best suited to your specific deal.