Mar 1, 2016
Flight of the Texas crane: ‘big four’ office 4Q 2015
DFW, HOUSTON, SAN ANTONIO, AUSTIN - Construction underway tapered down throughout 2015 and ended the year with just under 17 million sf in progress, according to the fourth quarter 2015 CBRE Texas...
DFW, HOUSTON, SAN ANTONIO, AUSTIN - Construction underway tapered down throughout 2015 and ended the year with just under 17 million sf in progress, according to the fourth quarter 2015 CBRE Texas Office report.
The annual delivery total, however, yielded almost 20 million sf for 2015—more than double the 8.9 million sf introduced to the Texas markets in 2014.
Houston and Dallas account for 44 percent and 40 percent of the 16.9 million sf underway across the major metros although the pipeline for both of those markets has contracted over the last 12 months, particularly in Houston.
Preleasing in primary markets hovered slightly above 50 percent; while ranging between 18-25 percent in non-primary markets.
Dallas-Fort Worth:The five projects that delivered in DFW in 4Q 2015 totaled 1.3 million sf, with about three-fourths of that space already preleased. For the year, DFW has added 5.2 million sf to its inventory which mirrors the amount of absorption posted in 2015.
Houston: The office pipeline in Houston continued to cool over the quarter, but the market still leads the state in office square footage underway with 7.4 million sf under construction among 22 office projects.
Combined with the three previous quarters, there were 11.3 million sf of office deliveries for 2015, the highest level of new construction the market has seen since 1983.
Austin: New office demand was a prominent theme in Austin in 2015. The 657,307 sf of new deliveries for the quarter pushed the total near 2.75 million sf for the year, the highest annual completion volume the market has seen since 2008.
San Antonio: 2015 marked a particularly strong year for new construction in San Antonio. After seeing 129,000 sf come online in 4Q 2015, the annual total amounted to over 650,000 sf, with another 769,458 sf of projects underway.
Click to see the full Texas Office: Big Four Metros 4Q 2015 (PDF).
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