Our research team adapted a new way to highlight the multifamily rent growth over the last several years to provide a unique visual of our local office market.
What you see below is “annual” rent for Class A & B office space across our submarkets going back to 2000. We colored the last few years so they would stand out against the backdrop of the prior years. Interestingly, except for a couple of submarkets in 2007 and 2008 (notice the grey dots for Las Colinas, as an example), we have been seeing record gains for most locations the last few years. Seeing the growth portrayed in this fashion, it is not a surprise that we have been hearing consistent stories of tenants experiencing rent shock as lease renew.
Clearly, we are at the top of our cycle. That’s not to say we are poised for a fall given the drivers that are still pushing our local economy. Rather, in all likelihood, we would expect to see some plateauing over the near term.
If you have any questions or would like to discuss, please contact us. Our research team is here to assist.