DTZ: Dallas No. 4 in U.S. in office leasing in 2014

DALLAS – Dallas ranked fourth nationally with 4 million sf of net office leasing in 2014, according to commercial real estate firm DTZ (formerly Cassidy Turley).

Dallas landed behind only New York City, Houston and San Diego.

Along with strong leasing, Dallas was also one of the country’s fastest growing office rent cost markets with an average 5.5 percent increase in rates in 2014, according to DTZ.

“If one annualizes the second half of 2014, the office sector has been absorbing space at nearly twice its historical average,” said DTZ economist Kevin Thorpe. “Fundamentals still vary greatly by location, but the latest demand metrics can no longer be characterized as subpar. This is robust.”

Nationwide there was 105 million sf of office space under construction — up 76 percent from 2013. About 6 million sf is under construction in the Dallas area.

Total office leasing for the U.S. in 2014 was the highest since 2006 and rose 47 percent in fourth quarter 2014.