Market Trends
Rental Rates Rise Due to Consistent Demand
The trend of a growing Dallas – Fort Worth office space market continues through 2016. The Dallas and Fort Worth area has approximately 9 million square feet of new office space currently in development, of which nearly 7 million square feet may be completed before year’s end.
The demand for Dallas – Fort Worth office space remains high. This tight market is making great office lease deals harder to find. This Dallas – Fort Worth Office Market Report newsletter is distributed as a means of informing our clients and commercial real estate tenants about ways to save time and money during the office leasing process.
The Dallas – Fort Worth office space market has absorbed over 1.3 million square feet of office space this quarter. The Richardson/Plano Submarket recorded most of this absorption, with a total of nearly 960,000 square feet of office space being absorbed. Due to the ever increasing demand, rental rates for Dallas – Fort Worth office space have been steadily increasing higher. The current asking rates are nearly 6% higher now than they were at this time last year.
If you are seeking Dallas – Fort Worth office space for lease, you may want to consider signing the longest lease term which you are comfortable with. However, you’ll want to be sure not to limit your potential growth plans. Market rental rates have been rising faster than the annual rent escalations found in most leases. This trend is expected to continue as the city continues to grow.
Vacancy and Rental Rates
High demand for Dallas – Fort Worth office space has continued through 2016 with the citywide office space vacancy rate remaining strong at approximately 15.2%. Rental rates have continued to rise steadily to an average of $23.31/sf for office space throughout the Dallas – Fort Worth market. This is up from an average $23.00/sf last quarter and $22.03/sf twelve months ago.
Additional Information
If you are interested in rental rates for a certain location or are seeking Dallas – Fort Worth office space for lease, please contact us with your requirement.
Information in this Dallas – Fort Worth Office Market Report has been obtained from sources deemed reliable. While considered accurate, we make no guarantee, warranty, or representation about it.