Metroport Commercial Group’s May 2026 Allen/McKinney Industrial Market Report shows companies continued moving into industrial buildings during a quarter with more than one million square feet of new construction completed. The findings indicate that tenant demand remains active as the submarket adds significant new supply.
-- Metroport Commercial Group released its May 2026 Allen/McKinney Industrial Market Report, which finds that companies continued leasing and occupying industrial space during one of the largest construction quarters in the Dallas–Fort Worth region. The data shows that tenant demand is keeping pace with the amount of new space coming online.
The submarket’s vacancy rate reached 11.8 percent in Q1 2026. Construction added 1,042,450 square feet of new industrial buildings in one quarter, placing Allen/McKinney among the three most active construction corridors in DFW. Even with this level of new supply, occupied space increased by 192,698 square feet, confirming that new buildings are leasing rather than sitting empty.
Leasing activity totaled 611,264 square feet in Q1. Across the DFW metro, companies leased 18.5 million square feet of industrial space, marking the strongest first quarter on record. The region entered Q2 with approximately 10.1 million square feet of tenant commitments scheduled to take occupancy in upcoming quarters. Allen/McKinney holds a meaningful share of the new buildings those tenants will occupy.
Average rents in the submarket held at $10.36 per square foot net, an 18.5 percent premium over the DFW metro average of $8.71. The higher rent level reflects the corridor’s tenant base, which includes aerospace and defense contractors, advanced manufacturers, semiconductor‑adjacent users, and technology companies that prioritize access to Collin County’s skilled labor pool. These users tend to remain in place longer than bulk logistics tenants, supporting rent stability.
Construction activity remained elevated, with 1,106,487 square feet still underway at the end of Q1. Most of this construction is tied to a large data center expansion that does not compete with traditional industrial buildings. As a result, the amount of new space competing for tenants is smaller than the headline number suggests. The most competitive segment is recently completed mid‑bay buildings in the 150,000 to 499,000 square‑foot range, where tenants currently have the most negotiating leverage.
Capital markets activity continued in the corridor. In April 2026, two industrial land sites totaling approximately 63 acres near McKinney National Airport sold, with the seller returning capital to investors within seven months of acquisition. Institutional buyers remain active in the area and continue to underwrite long‑term growth.
“Companies continued moving into new buildings even as the submarket added more than a million square feet of construction in one quarter. The vacancy rate reflects timing, not weakening demand. We are watching lease‑up on recently completed projects closely, and current activity suggests continued movement,” said Brent Pennington, CCIM, Metroport Commercial Group.
The May 2026 report is the third installment in Metroport Commercial Group’s Allen/McKinney market series, which tracks leasing, rents, construction, vacancy, and investment activity along the US‑75, State Highway 121, and FM 546 industrial corridors.
For the full Allen/McKinney Industrial Market Report for Q1 2026, visit: metroportcre.com/allen-mckinney-texas-industrial-market-report-q1-2026/
About the company: Metroport Commercial Group, brokered by eXp Commercial, provides industrial tenant representation, site selection, and advisory services across the Dallas-Fort Worth region. The firm specializes in aligning operational requirements with real estate decisions to support long‑term business growth.
Contact Info:
Name: Brent Pennington
Email: Send Email
Organization: Metroport Commercial Group
Address: 1720 Bray Central Dr M100, McKinney, Texas 75069, United States
Phone: +1-817-999-8266
Website: https://metroportcre.com/
Release ID: 89192294
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