Dallas office market 2Q 2014: Cushman & Wakefield

DALLAS – The local Dallas office market has continued to expand during second quarter 2014 with tenant demand being at its strongest since 2006, according to the latest report by Cushman & Wakefield.

Direct and overall absorption has reached 2 million sf in 2014, a 37 percent increase compared to the 1.5 million sf absorbed during the same period in 2013.

Data reflect 8.3 million sf of leasing activity, with 57.3 percent of it being Class A space. Rental rates for this type of space saw a 5.4 percent increase, with rates rising to $26.22 per sf.

During 2Q 2014, 2.5 million sf of construction projects were completed. Of those completed, 1.4 million sf belonged to speculative projects.

Major tenants who took space this year include Santander Consumer Finance, Perkins Coie, Lockton Companies, Liberty Mutual, Kohl’s, Nationstar Mortgage, Conifer Solutions, Ernst & Young, Time Warner Cable, Bell Helicopter and Trend HR.

An additional 5.1 million sf of office projects are currently under construction. 2.6 million sf of the total projects currently underway are for speculative space. 30.7 percent of this speculative space has been preleased.

During 3Q 2014, an additional 2 million sf of projects will break ground.

Read more at GlobeSt. and the Dallas Morning News.