Cushman 2017 office forecast ranks Dallas second in U.S.
DALLAS – Dallas will be one of the top office leasing markets in the country during the next two years, according to Cushman & Wakefield (C&W) Office Forecast 2017.
The commercial real estate firm is predicting that the Dallas area will be second only to California’s Silicon Valley in net office leasing in the suburbs (non-CBD) through 2017.
Silicon Valley will continue to lead the charge, expected to absorb over 16 percent of its inventory by the end of 2017 as tech tenants keep expanding.
“The Dallas suburbs rank second in absorption as the area continues to draw major corporate relocations and expansions,” C&W said in its office forecast.
“The most significant announcement in 2014 was from Toyota, which is moving its North American headquarters from Southern California to Plano to a 1.5 million-sf facility."
“More relocations are expected through the forecast period as Dallas continues to attract corporate occupiers due to its low cost of doing business, low taxes, easy access to skilled labor, and availability of multiple real estate options.”
Houston also made the top ten suburban office absorption list in eight place.
| Markets | Overall Vacancy Rate | Avg. Annual Rent Growth | |||||||
| 2014 | 2015F | 2016F | 2017F | 2014 | 2015F | 2016F | 2017F | Avg. Rent Growth (2015-2017) | |
| Atlanta | 17.6% | 16.7% | 16.1% | 15.2% | $19.29 | $19.91 | $20.30 | $20.65 | 2.3% |
| Dallas | 16.7% | 16.2% | 17.3% | 16.2% | $21.13 | $21.69 | $22.22 | $22.69 | 2.4% |
| Silicon Valley | 9.1% | 8.8% | 10.1% | 13.2% | $35.21 | $39.40 | $43.77 | $47.63 | 10.6% |
| U.S. | 16.3% | 15.0% | 14.2% | 14.7% | $25.15 | $26.09 | $26.99 | $27.61 | 3.2% |
Read more at the Dallas Morning News. See Cushman & Wakefield U.S. Office Overview & Forecast.
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