JLL’s COW: Dallas office projects to change rental rates

DALLAS – New office project will change the rental rate landscape of the downtown core, according to JLL’s Chart of the Week (COW) from March 2, 2015.

Tighter Class A vacancy in the Arts District and Uptown’s office core has pushed full-service rents to $33.60 per sf — an increase of 18 percent in the last two years.

While the average illustrates the basic trend, it masks an important underlying dynamic. In fact, several buildings pull the real "average" down notably given very high rents in many properties.

Of space that is now under construction, rents average more than $44 per sf, suggesting that as new product is delivered, there will be upward pressure on Class A rates and the requirement for existing buildings to modernize to remain competitive.

Source: JLL Research

See JLL’s Chart of the Week.