JLL COW (Chart of the Week): How the last Dallas office deliveries faredJLL COW (Chart of the Week): How the last Dallas office deliveries faredhttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=134072016-06-06T05:00:00Z2016-06-06T20:00:00Z

​​​DALLAS - Only a modest level of office construction took place during Dallas’ last building cycle. 

  • As the economy peaked, only a handful of larger, “spec” properties were underway that delivered into the slowdown.
  • The properties above represent the higher visibility projects.
    All opened virtually empty and took about three years to stabilize. This lease-up pace, while slightly slower than ideal, still illustrates solid performance.
  • Proforma rents saw only modest downward adjustment into the recession (3 to 5 percent). Since then, these assets have remained fully leased and continue to set above-average rents. 
  • What is important, though, is the ramp-up in leasing.  Over eight quarters, leasing gradually improved, with full stabilization taking place in mid-2013.  

    While lease-up was likely slower than planned, stabilization at 95 percent occupancy was hit, and at an ending rental rate that was up almost $4.00 per SF over the opening discount. Given the delivery into the downturn, this should be viewed as pretty successful performance, especially since this asset has remained fully leased—albeit at the expense of older Class A properties—and continues to set the high-water mark for submarket rents.​
Jones Lang LaSalle (JLL)
Dallas-Fort Worth-Arlington

​See Dallas Office Market Research for JLL reports as well as CBRE, Cushman & Wakefield, ​Colliers, Cassidy Turley plus more.

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