|PMRG: Dallas-Fort Worth office market 4Q 2015||PMRG: Dallas-Fort Worth office market 4Q 2015||https://www.recenter.tamu.edu/news/newstalk-texas/?Item=11673||2016-01-08T06:00:00Z|
DALLAS-FORT WORTH - The DFW office market recorded 1,252,571 sf of direct net absorption during fourth quarter 2015 — increasing its 2015 absorption tally to nearly 5.3 million sf — the largest annual gain since 2000.
During the quarter, Class A properties observed a net 780,715 sf of direct absorption gains, compared to 492,173 sf of growth in Class B product.
Class A occupancy rates declined 40 basis points to 83.2 percent during the quarter due to new supply outpacing demand, but still remain 10 basis points higher than its level recorded 12 months ago.
Meanwhile, Class B occupancy rates grew 90 basis points during 2015 to 82.7 percent.
Class A full service asking rates improved by $0.39 to $26.49 per sf during the quarter and have increased by 6.0 percent (or $1.49) over the prior 12 months.
Class B asking rents increased by $0.46 to $19.73 per sf, and have increased by 6.0 percent (or $1.11) over the prior 12 months.
Strong Class A demand has pushed vacancy rates down to the levels last seen in the early 2000s, when low vacancy rates sparked a surge in speculative development.
Many large deals were signed during the quarter, which will help fuel future absorption growth.
|PMRG||Dallas-Fort Worth-Arlington||Office|| http://www.pmrg.com/locations/dallas/|
For the full report, see PMRG's DFW Market at a Glance 4Q 2015 (PDF). Also see DFW Office Market Research for more free reports!