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Cushman & Wakefield: DFW office vacancy 1Q 2015Cushman & Wakefield: DFW office vacancy 1Q 2015https://www.recenter.tamu.edu/news/newstalk-texas/?Item=11092015-05-07T09:59:00Z2015-05-06T00:00:00Z

DALLAS-FORT WORTH - Office vacancy across North Texas continued to fall in first quarter 2015, coming in at 16.7 percent, according to Cushman & Wakefield of Texas.

The vacancy rate was down from 17.8 percent in 1Q 2014. Dallas’ Central Business District (CBD) took the greatest drop, from 24.9 percent to 21.8 percent, as businesses moved to new or larger spaces in the urban core.

Vacancy in the Legacy/Frisco area grew substantially — from 8.3 percent to 15.9 percent — as nearly 1.5 million sf of new inventory was added to the market since 1Q 2014.

Asking full-service rental rates ticked up across the market, to an average of $21.50 per sf, an increase of 3.7 percent over 2014 levels. Class A rents rose 3.7 percent, reaching an all-time high of $26.65 per sf. C&W researchers expect rate increases to begin leveling off in the next 12 to 18 months.

About 8.8 million sf of office space is under construction across North Texas, comprised of 18 speculative buildings totaling 3.6 million sf and another ten build-to-suits totaling 5.2 million sf. More than half — about 5 million sf — is expected to hit the market in 2015.

About 60 percent of the speculative space has been preleased, with most located in the Turtle Creek/Uptown, Dallas CBD, and Preston Center submarkets.

DFW Office 1Q 2015
Submarket Inventory Overall
Vacancy
Rate
YTD
Leasing
Activity
Under
Construction
YTD Direct
Net
Absorption
YTD Overall
Net
Absorption
Overall Wtd.
Avg. All
Class Gross
Rental Rate*
Dallas CBD 26,651,220 21.8% 281,248 454,500 258,337 258,337 $22.51
Dallas suburbs 157,595,523  16.9% 2,417,979   8,025,309 802,650  206,926  $21.29
FW CBD 11,658,902 10.1% 135,475 0 90,615 90,615 $27.43
FW suburbs 11,919,676 7.6% 42,932 357,214 33,926 33,926 $19.34
DFW total 207,825,321 16.6% 2,877,634 8,837,023 1,185,528 589,804 $21.64


*Rental rates reflect asking $/PSF/year

Click to view the full DFW Cushman & Wakefield Office report. 

D Magazine
Dallas-Fort Worth-Arlington
Office
http://realestate.dmagazine.com/2015/04/dfw-office-market-vacancy-dips-lease-rates-tick-up/Read more at {Source}

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