DFW: office construction pipeline increases 309 percent

DALLAS-FORT WORTH – The office sector for the Dallas-Fort Worth area has experienced a construction pipeline increase of 309 percent, according to the second quarter 2014 market report by PM Realty Group.

DFW has increased to more than 5.4 million sf under development, with nearly 70 percent of the space already preleased. During 2Q 2014, more than 1 million sf of new construction entered the market.

DFW’s office market recorded 460,495 sf of direct net absorption during 2Q 2014, bringing the 12-month total to 3.2 million sf.

Due to the strong leasing demand, occupancy levels have climbed to an 11-year high and asking rents have risen to their highest level since 2008.

The current pace of job growth is expected to continue throughout 2014 and forecasted to improve significantly for 2015, according to Kurt Cherry, PM Realty Group’s EVP.