Jul 12, 2016
Cushman & Wakefield: North Texas office market ‘solid’
DALLAS – North Texas’ office market fundamentals remained solid in the second quarter, reports Cushman & Wakefield in its latest market update.Year-to-date overall absorption totaled 3.4 million sf, an increase of 9.3...
DALLAS – North Texas’ office market fundamentals remained solid in the second quarter, reports Cushman & Wakefield in its latest market update.
Year-to-date overall absorption totaled 3.4 million sf, an increase of 9.3 percent since mid-year 2015 levels. High demand for space is putting downward pressure on vacancy rates, and average asking rental rates have risen across all submarkets.
Vacancies are expected to generally flatten over the next 12 to 18 months as new inventory is delivered.
Other takeaways from Cushman & Wakefield’s report:
- At nearly 6.7 million sf in the first half of 2016, leasing activity is 11.6 percent lower than mid-year 2015. Class A transactions accounted for 50.1 percent of the current total.
- The overall vacancy rate was 15.7 percent, a drop of 70 basis points since second quarter 2015, with Northeast Dallas County, North Central Expressway, and Stemmons Freeway markets reporting the largest year-over-year rate decreases.
- Construction completions year to date were 31.6 percent lower than last year over the same period with nearly 1.8 million sf of office space delivered in 2016. There is currently 7.9 million sf under construction, an increase of 27.1 percent over second quarter 2015.
- Asking full-service weighted rental rates across all classes were $25.39 per sf, an increase of 14.3 percent over second quarter 2015. Class A asking rents rose 14.8 percent over the same period, reaching $31.12 per sf.
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