PMRG: Dallas office market 1Q 2014
DALLAS-FORT WORTH – PM Realty Group’s first quarter 2014 office market report for DFW is available. Office market recorded nearly 1.2 million sf of direct net absorption during 1Q 2014, which far outpaces the 2013 quarterly average of 649,000 sf.
The strong economic performance of the Metroplex has pushed Class A direct occupancy levels to their highest levels since 2006. The current pace of job growth is expected to continue throughout 2014 and forecasted to improve significantly for 2015, meaning strong leasing demand for the numerous construction projects coming online.
The office construction pipeline has skyrocketed by 375 percent within the past year to nearly 5.5 million sf under construction (excluding owner-occupied projects), with 55 percent of this new space already leased.
| Submarket | Inventory SF (Total) | Direct SF Available | Occ. | Under Construction | Class A Asking Rent (per SF) | Class B Asking Rent (per SF) |
| Dallas CBD | 28,691,530 | 9,695,542 | 70.3% | 450,000 | $22.38 | $17.53 |
| Las Colinas | 27,859,384 | 5,673,473 | 82.9% | 723,039 | $24.30 | $19.23 |
| Quorum / Bent Tree | 18,942,462 | 3,744,098 | 82.1% | 120,000 | $24.57 | $17.47 |
| East LBJ | 15,788,375 | 4,700,855 | 75.4% | 0 | $21.34 | $16.67 |
| Upper Tollway / West Plano | 14,487,316 | 1,801,843 | 88.9% | 1,053,108 | $28.44 | $24.45 |
| Stemmons | 14,027,206 | 3,263,530 | 78.5% | 0 | $18.63 | $14.06 |
| Total* | 222,645,366 | 47,106,081 | 81.9% | 5,494,781 | $24.02 | $18.24 |
* Total include all DFW submarkets.
Source: PM Realty Group
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