CBRE: DFW Office MarketView 4Q 2014
DALLAS-FORT WORTH – The North Texas office market experienced its 18th consecutive quarter of favorable leasing fundamentals in fourth quarter 2014 and appears poised for a strong first half of 2015, according to CBRE.
Fourth quarter 2014 had nearly double the deliveries of 3Q 2014. Preleasing among delivered construction is currently 40.4 percent, with the remaining speculative space contributing to overall market vacancy.
The 4Q saw an increase in new completions and a slightly slowed pace of new construction starts. The under construction pipeline remained above 7.1 million sf over the quarter, driven by activity in suburban markets.
Gross asking rents continued to experience growth, with the overall market average rising moderately to $20.68 per sf in 4Q 2014 from $20.41 per sf in 3Q 2014 on a gross basis.
Class A rates increased at an especially strong pace, rising from $26.44 per sf to $26.61 per sf for the same timeframe.
Below are six of the 17 submarkets in DFW with the lowest vacancy rates.
Market | Net Rentable SF | Total Vacant | Avg. Asking Rent | 4Q 2014 Total Net Absorption | 2014 Total Net Absorption |
North Fort Worth | 1,286,830 | 3.4 | $18.58 | 3,728 | -4,612 |
South Fort Worth | 6,789,325 | 7.8 | $19.88 | 33,342 | 13,589 |
Preston Center | 3,860,276 | 9.4 | $32.08 | -46,254 | -63,188 |
Southwest Dallas | 1,665,033 | 10.0 | $15.52 | 22,208 | 70,590 |
Uptown/Turtle Creek | 10,371,340 | 12.4 | $33.75 | 23,635 | -16,069 |
East Dallas | 3,817,856 | 14.0 | $15.51 | 62,763 | 185,506 |
Dallas Total | 183,499,602 | 18.9 | $21.07 | 278,004 | 2,799,618 |
Fort Worth Total | 35,091,998 | 16.1 | $19.36 | 65,492 | 480,383 |
DFW Total | 218,591,600 | 18.4 | $20.68 | 343,496 | 3,280,001 |
Source: CBRE Research
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