Dallas office vacancy dips, rent rises 1Q 2014 CBRE

DALLAS – Dallas-area office vacancy rates dropped below 18 percent in first quarter — the lowest level in more than a decade, according to a new preliminary report by CBRE Group.

The supply of empty office space in North Texas has fallen in the last year, as job growth in the area has remained strong.

Preliminary gross asking rent shows Dallas-area at $19.93, compared to $19.85 in 4Q 2013.

“Leasing activity has sustained its momentum throughout DFW, supported by strong job growth, particularly among office-using sectors such as the financial and professional business services industries,” said Dennis Barnes, CBRE senior vice president.

Based on preliminary 1Q numbers, the highest office vacancy rates are in Phoenix, 22.4 percent, and Atlanta, 20.4 percent. New York had the lowest average vacancy at 8.3 percent. Houston office vacancy rates rose to 11.9 percent compared to 11.8 percent in 4Q 2013.

With 26.9 percent of the space empty, downtown Dallas had the highest central business district vacancy among the more than a dozen cities CBRE surveyed.