Our 2015 outlook for the Dallas office market continues to be positive. Despite recent national news about the impact of declining energy prices on some Texas markets, Dallas has a diverse economic base that should insulate it from much of this turmoil. Jobs increased last year in DFW by more than 110,000, with gains registered across almost all sectors. These jobs have fueled Dallas’ brisk net absorption pace. With 8.2 million square feet absorbed since 2012 – vacancy is now down close to all-time lows. This is pushing rents higher across our submarkets. Year-on-year, Class A asking rents are up almost 7 percent on average, with some hot submarkets seeing new peak rates – as well as a shift to triple net rents. While construction is ramping up, we are not worried about impending over-supply because most of this space is already spoken for – as evidenced by 75 percent of space now under construction being pre-leased.
For more information, contact:
Jeff Eckert, CCIM, Managing Director | +1 214 438 6153 | firstname.lastname@example.org
Walter Bialas, Research Director | +1 214 438 6228 | email@example.com