While office absorption has slowed from its frenzied pace in 2014 and 2015, it is still running well above our long-term annual average of around 1.5 million square feet. At the start of 2016, we took a shot and estimated that we would be around a 2 million square feet this year. With 1.5 million square feet of Class A and B in the books through 3Q, that still… Read More
JLL Research took a look at home affordability and how it has been changing in support of understanding where Legacy / Frisco is going in response to high job growth .
This is no surprise because it is in the news often – home prices have been rising fast here in Dallas/Fort Worth, with numbers like 8% to 10% annually commonly quoted. The chart below shows the median home price… Read More
Our Dallas/Fort Worth industrial market has been performing extremely well.
We’ve pointed out on several occasions that despite record construction, absorption has been keeping pace. While we thought there might be a slight near-term mismatch between supply and demand, causing vacancy to rise gradually, that has not happened. In fact, as you can see below, vacancy remains at close to its all-time low.
Given where we stand today, we believe the… Read More
As we continue to look at the rapid growth of our northern suburbs, we realized that a dramatic pricing spread exists for homes between the Legacy area and the heart of Richardson-Plano. In some ways, this is not a surprise. The six or seven zip codes around the core of Legacy are mostly newer homes, whereas much of the stock around Richardson-Plano was developed back in the 1970s.
The chart below highlights the current level of large Class A blocks of office space available by submarket. We consistently track this metric, and it has not moved appreciably in the last few quarters. That is not to say demand has been lacking. In fact, most of the recent absorption has been taking place in the newest developments.
The issue here is that a good portion of the space highlighted… Read More
A couple of weeks ago, we posted a chart showing office rent growth over time in Dallas. We got such strong positive feedback, we thought we’d showcase the same for industrial.
Interestingly, the numbers come out a bit different. Whereas office is still at or still close to peak increases, rent gains for the industrial sector have come off their 2014 and 2015 peaks and begun to moderate for the majority… Read More
Job gains continue pretty much unabated in our market. We watch these numbers closely for any sign of slowing, and there simply has not been any trace.
The most recent numbers from the Bureau of Labor Statistics has Dallas-Fort Worth adding 117,000 jobs on an annualized basis. That equates to a 3.4% growth rate, twice that of the US. DFW also accounts for 63% of overall Texas job gains in the… Read More
Last week, I saw an interesting article in the Urban Land Institute’s magazine on the re-urbanization of downtown Los Angeles. The article did a nice job pointing out the changes that have been taking place in LA and identifying the ingredients for success. These included a resurgence in housing, critical to enlivening the streets, new commercial development, and reinvestment in the community.
We have been seeing similar changes here in… Read More
It’s hard to miss the ongoing media attention about DFW’s apartment development pipeline. We decide to examine the sector to get a better sense of where the market stands in terms of recent deliveries and new product positioned to come on line.
We recognize that actual delivery dates are difficult to benchmark perfectly across so many properties. Even with that, as we tally-up units completed… Read More