DFW office market year-end 2012: Transwestern

DALLAS-FORT WORTH – The fourth quarter 2012 office outlook for the Dallas-Fort Worth MSA is available. Net absorption totaled 1.8 million sf during fourth quarter 2012 and 3.2 million sf during 2012.

Vacancy rates declined to 16.4 percent at year-end 2012, from 16.9 percent at 3Q 2012 and 17.3 percent a year ago. The direct office vacancy rate declined to 15.8 percent at year-end 2012, from 16.2 percent at 3Q 2012 and 16.6 percent one year ago.

There is 1.2 million sf of office space under construction or renovation in the Metroplex at year-end 2012, down from 1.6 million sf at 3Q 2012 but up from 835,000 sf at year-end 2011. Five of the eight projects started during 4Q 2012 were fully preleased.

Asking rent for office space in DFW rose approximately 1.9 percent during 2012 as a result of decreased available space and increased tenant demand. The average asking rent for all classes of office space combined in DFW is $18.71 per sf, gross full service.

Source: Transwestern