Jul 21, 2016
CBRE: DFW office leasing, development momentum continues
DFW - The North Texas office market is exhibiting no signs of a slowdown. To the contrary, the region continues to expand, with 3.6 percent year-over-year employment growth. That’s 120,000 jobs...
DFW – The North Texas office market is exhibiting no signs of a slowdown. To the contrary, the region continues to expand, with 3.6 percent year-over-year employment growth.
That’s 120,000 jobs added in the last 12 months, and it all points to ongoing demand for office space, say analysts at CBRE.
For the 24th consecutive quarter, the firm reports, DFW recorded positive net absorption, totaling about 1.3 million sf for second quarter 2016 (2Q 2016) and about 2.9 million sf for the first six months of the year.
Far North Dallas continues to lead the way, with 460,000 sf of absorption for 2Q 2016.
According to CBRE 2Q 2016 Office Stats, vacancy dropped from 18.1 percent to 17.5 percent for the quarter, with about 4 percent of that in the form of sublease space.
Overall, Class A rents grew by 1.1 percent to $29.33 per-sf; Class B rents grew by an impressive 4.5 percent, to $19.39 per-sf.
Developers are doing their best to meet demand. Five Class A office projects were completed in second quarter, totaling about 700,000 sf.
Meantime, six new projects totaling more than 900,000 sf broke ground. This brings the market-wide total to 7.5 million sf under construction, with about 52 percent of the space already spoken for.
Activity is especially brisk in Far North Dallas, Uptown, and Richardson, where 70 percent of all new construction is underway.
Notable projects include McKinney & Olive and Park District in Uptown, along with Liberty Mutual’s twin-tower build-to-suit at Legacy West in Plano.
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