Oct 8, 2015
PMRG: Dallas-Fort Worth office market 3Q 2015
DALLAS-FORT WORTH - The DFW office market recorded 827,441 sf of direct net absorption during third quarter 2015, increasing its year-to-date absorption count to more than 4.0 million sf —...
DALLAS-FORT WORTH – The DFW office market recorded 827,441 sf of direct net absorption during third quarter 2015, increasing its year-to-date absorption count to more than 4.0 million sf — which puts 2015 on pace to record its highest absorption level since 2000.
Build-to-suit construction, corporate relocations to the market and company expansions have been the driving force behind the healthy demand witnessed during the year, increasing occupancy rates by 60 basis points to 83.2 percent since the end of 2014.
The DFW office market growth is not expected to slow down any time soon, even with the decline in occupancy rates during the quarter.
The office construction pipeline has increased 20.3 percent within the past year to approximately 6.4 million sf (excluding corporate-owned projects), continuing its surge experienced since late 2013.
Only about 42 percent of this space has pre-lease commitments as developers are increasingly comfortable breaking ground prior to securing a lead-tenant.
Office market fundamentals are forecasted to remain healthy resulting from corporate relocations and expansions as companies are attracted to the metro area’s business-friendly environment with relatively lower business costs and a well-educated labor force.
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