Allen Texas Industrial Market Update Mid Year 2026

Compiled by Brent Pennington CCIM

This update is drawn entirely from the Allen Economic Development Corporation’s August 2025 info sheet, a citywide snapshot rather than a CoStar-sourced submarket report. It covers the City of Allen specifically, not the broader Allen/McKinney industrial submarket, and the underlying data is dated to August 2025. Treat the figures below as a directional read on the local market, not a substitute for a full submarket analysis.

Explore McKinney-Allen Industrial Market Udate Mid-Year 2026

Why Allen, TX for Industrial and Manufacturing Space

Allen sits 12 miles north of Dallas, a 35-minute drive from both DFW International Airport and Dallas Love Field. The city itself is home to 113,300 residents, part of a broader Collin County population of 1.2 million. Within a 30-minute drive, Allen draws on a workforce of 3.8 million, and 60% of adults in the area hold a bachelor’s degree or higher. Allen ISD ranks 6th among Texas school districts, a factor that matters to relocating employers as much as site selectors.

Allen, TX Industrial and Flex Market Snapshot

The EDC’s commercial market stats for Allen’s industrial and flex inventory:

Total industrial/flex inventory: 5,163,484 SF
Vacancy rate: 8.4%
Available space: 434,554 SF
Asking rent: $16.59/SF NNN

At 8.4% vacancy against 5.16 million square feet of inventory, Allen’s industrial and flex base is running tighter than the wider North Dallas industrial market has in recent years. The available pool of 434,554 SF is not large relative to demand from the relocation and expansion activity the EDC has been tracking, which points to continued upward pressure on asking rents for well-located product.

Allen Industrial and Manufacturing Relocations and Expansions

The EDC’s notable deals list is weighted toward corporate and office relocations, but several recent moves are directly industrial or manufacturing in character:

Onsemi (semiconductor supplier): 350 jobs, 100,000 SF, $30 million investment
Sol-Ark (solar energy and EV charger manufacturing, plus HQ): 400 jobs, 295,000 SF, $10.1 million investment
Motorola Solutions (electronics company and regional HQ): 320 jobs, 140,000 SF, $47 million investment
Amphenol Fiber Systems Intl. (fiber optic systems assembly): 200 jobs, 94,000 SF, $8 million investment
ACIS (mechanical services provider): 150 jobs, 33,000 SF, $2.5 million investment

Taken together, these five deals alone represent roughly 662,000 SF of industrial and manufacturing space absorption and more than $97 million in capital investment, concentrated in semiconductor, energy technology, electronics, and mechanical services. That is a meaningfully diversified industrial demand base for a submarket this size, not a single-sector story.

Target Industries Driving Allen Industrial Demand

Allen EDC’s target industry list is directly relevant to future industrial and flex absorption. Four categories in particular drive real estate demand rather than pure office demand:

Semiconductor Manufacturing: advanced production and testing tied to the regional electronics and communications supply chain
Technology Product Manufacturing: high-tech products built with precision equipment and skilled labor
Life Sciences: medical devices, dietary supplements, and food technology production
Energy: carbon management, oil and gas exploration, and drilling equipment distribution

Software, digital and technical services, and financial services round out the EDC’s target list, but those sectors lean toward office absorption rather than industrial.

Allen, TX Industrial Business Incentives and Tax Abatements

Both the City of Allen and the State of Texas offer tools that apply directly to industrial relocations and expansions:

Cash grants from the Allen EDC’s half-cent sales tax fund, covering relocation costs, infrastructure, job training and hiring, and capital investment
Property tax abatements on real and business personal property for up to 10 years
Freeport Inventory Exemption for goods exported from the state; Allen companies claiming it saved an average of $695,000 over the last five years
Texas Enterprise Fund, the state’s deal-closing cash grant program for expanding or relocating businesses
Skills Development Fund, over $48 million in state workforce training dollars administered through Collin College
Texas Semiconductor Innovation Fund, grants for businesses with an established Texas presence in semiconductor manufacturing and design
JETI Program, a 10-year school district M&O tax value limitation for qualifying jobs and capital investment

For a semiconductor or advanced manufacturing user evaluating Allen against other North Texas cities, the combination of Freeport exemption, property tax abatement, and the Texas Semiconductor Innovation Fund is a meaningful stack, and it lines up directly with the tenant profile already showing up in the EDC’s relocation data.

Allen Growth Projects and Industrial News

Recent local press that the EDC is tracking, relevant to the broader growth story supporting industrial demand:

Chipmaker Onsemi relocating North Texas design operations to Allen (Dallas Morning News, June 2024)
HVAC firm bringing more than 150 jobs to Allen in an HQ move (Dallas Business Journal, May 2025)
Stage set for a new $1 billion Kalahari Resort waterpark in Allen (Dallas Business Journal, February 2025)

The Kalahari project and the broader office pipeline (10 million SF of Class A office planned) are not industrial deals themselves, but they signal the kind of population and employment growth that has historically pulled industrial and flex demand along with it.

What This Means for Allen Industrial Owners and Tenants

This is a thin data set on its own. It is a citywide EDC snapshot, not a submarket-level leasing and sales report, and it does not include absorption trends, construction pipeline, or cap rate data. But the signal is consistent with what the fuller CoStar-based Allen/McKinney reporting has been showing: available industrial and flex space is limited, demand is diversifying beyond pure logistics into semiconductor, energy technology, and precision manufacturing, and the incentive structure in Allen specifically is built to attract exactly that kind of tenant. Owners with industrial or flex product in Allen are working with real scarcity on their side. Businesses evaluating a move into Allen should expect a competitive search for space and should factor the local incentive stack into their site selection math from the start.

Frequently Asked Questions: Allen, TX Industrial Market

What is the industrial vacancy rate in Allen, Texas?

Allen’s industrial and flex vacancy rate stands at 8.4%, with 434,554 SF available across a total inventory of 5,163,484 SF, according to the Allen Economic Development Corporation.

What is the average industrial asking rent in Allen, TX?

Industrial and flex asking rent in Allen averages $16.59 per square foot NNN, based on Allen EDC data as of August 2025.

What tax incentives are available for industrial businesses relocating to Allen, Texas?

Allen and the State of Texas offer cash grants from the Allen EDC’s half-cent sales tax fund, property tax abatements of up to 10 years, the Freeport Inventory Exemption (an average savings of $695,000 over five years for Allen companies that claim it), the Texas Enterprise Fund, the Skills Development Fund, the Texas Semiconductor Innovation Fund, and the JETI Program.

What industries are driving industrial demand in Allen, TX?

Allen’s target industry list points to four sectors driving real estate demand: semiconductor manufacturing, technology product manufacturing, life sciences, and energy. Recent relocations from Onsemi, Sol-Ark, Motorola Solutions, Amphenol Fiber Systems, and ACIS reflect that mix.

Why are companies relocating manufacturing and industrial operations to Allen, Texas?

Five recent relocations and expansions, Onsemi, Sol-Ark, Motorola Solutions, Amphenol Fiber Systems, and ACIS, represent roughly 662,000 SF of industrial and manufacturing space absorption and more than $97 million in capital investment. Allen’s location 12 miles north of Dallas, access to a 3.8 million person workforce within 30 minutes, and its incentive stack are drawing that activity.

Explore Allen Texas Business & Industrial Market Guide

Brent Pennington, CCIM, ALC

Advisor, Senior Vice President

Metroport Commercial Group, eXp Commercial

1720 Bray Central Drive, Ste 100, McKinney, TX 75069

Phone: 817-999-8266

Email: brent@metroportcommercial.com

Website: www.metroportcre.com

Data Source: Allen Economic Development Corporation, Allen EDC Info Sheets, August 2025.