Falling vacancies, rising rents boost Dallas’ Class B office

DALLAS-FORT WORTH – With office vacancy falling and rents rising in Class A space, more tenants are taking offices in second-tier buildings, according to Jones Lang LaSalle. So far in 2013, most of the net office leasing in North Texas has been in Class B buildings.

Vacancy rates in prime office buildings have dropped below 15 percent in top markets including Uptown, Las Colinas and Far North Dallas.

Through third quarter 2013, 1.2 million sf of net office leasing in the DFW area has been in Class B buildings. Net leasing in Class A buildings has totaled about 419,000 sf in 2013.

The lower cost of Class B office space is one of the reasons for the jump in leasing. The second-tier buildings average about 25 percent cheaper to rent than the first-class office addresses.

See DFW office reports galore for this quarter.