Market Trends
Corporate relocations create an incredibly strong market
High demand for Dallas and Fort Worth office space endures through 2017. According to the Bureau of Labor Statistics, the unemployment rate in the DFW Metropolitan Area rose slightly by 0.2% over the past year from 3.6% in May 2016 to 3.8% in May 2017. The United States currently has an unemployment average of 4.3% and The State of Texas is at 4.8%. Nearly 111,000 new jobs were created in the Dallas – Ft. Worth area over the past 12 months.
With Dallas – Fort Worth office space being in continuous demand, the tight leasing market is making great office space deals harder to find. This 2nd Quarter Dallas – Fort Worth Office Market Report newsletter is distributed as a means of informing our clients and commercial tenants about ways to save time and money during the office leasing process.
The DFW office space market absorbed over 3.3 million square feet of office space in the 2nd quarter of 2017. Build to suit projects for corporate relocations is the main backing of the large absorption rate, with Toyota being the most prominent at 2.1 million square feet. The trend of growing rental rates has continued throughout the Dallas – Fort Worth, TX metro to the dismay of many small business owners. The current asking rates are nearly 6% higher than they were at this time last year.
If you are seeking Dallas – Fort Worth office space for lease, it may be in your best interest to sign the longest lease term that you are comfortable with. Market rental rates have been rising faster than the annual rent escalations found in most commercial leases. This has been an existing trend for the past several years and it is expected to remain as the metroplex continues to grow. It is important to plan for future business expansion needs though and not limit your long-term options.
Vacancy and Rental Rates
Rental rates continue to rise in 2017 as demand remains high for DFW office space. The market-wide office space vacancy rate has dropped to 14.4% over the past quarter. If you include office space that is listed for sublease, the direct market vacancy rate is 18.4%. Office space rental rates have shown a sizable increase over the past 12 months to a now current average of $24.80/SF gross for office space throughout the Dallas – Fort Worth market. This reflects an increase of $1.40/SF from an average $23.40/SF gross twelve months ago.
Additional Information: Dallas – Fort Worth Office Market Report Q2 2017
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 Q2 2017 has been obtained from Xceligent, Inc., a source deemed reliable. While considered accurate, we make no guarantee, warranty, or representation about it.