CoStar: DFW office market 4Q 2014

DALLAS-FORT WORTH – The DFW Office market ended fourth quarter 2014 with a vacancy rate of 14.3 percent.

The vacancy rate was down from 3Q 2014, with net absorption totaling positive 1,092,496 sf. That compares to positive 2,224,253 sf in 3Q 2014. Vacant sublease space increased, ending the quarter at 2,537,065 sf.

Tenants moving into large blocks of space in 2014 include Education Service Center moving into 136,717 sf at 1451 S. Cherry Ln.; US Health moving into 67,596 sf at 300 Burnett St.; and Mitel Technologies moving into 52,834 sf at Granite Park Four.

Rental rates ended 4Q 2014 at $21.62, an increase over the previous quarter. There were 27 buildings delivered to the market in 4Q 2014 totaling 991,598 sf, with 7,750,552 sf still under construction at the end of the year.

This trend is compared to the U.S. National Office vacancy rate, which decreased to 10.9 percent from 3Q 2014, with net absorption positive 37.5 million sf in 4Q 2014. Average rental rates increased to $22.65, and 194 buildings were delivered to the market totaling almost 15.9 million sf.