DFW office market ‘robust,’ but new development slowing

​DALLAS – CBRE describes the DFW office market as "robust" in its fourth quarter 2016 report. However, the brisk pace of new development does appear to be levelling as 2016 ends with less than 6.7 million sf underway.

Fewer than five buildings delivered in the fourth quarter, totaling just over 350,000 sf. This marks the lowest square footage of deliveries in three years. Meanwhile, the preleased rate remained strong at more than 80 percent.

Of the more than 6.7 million sf of new construction underway, 44.6 percent is preleased, up 6 percent in the past 90 days with 24 of the 28 buildings underway being speculative.

Construction activity is focused in Far North Dallas (mainly the Upper Tollway and Frisco), Uptown, and Las Colinas. These submarkets accounted for 76.5 percent of the local market’s construction as of year-end.​