Market Trends
Rising rental rates spur more office development
The Dallas and Fort Worth office space markets have continued to boom throughout 2016. Thankfully Texas as a whole is doing well, even with the current oil slump. According to the Texas Workforce Commission, the State of Texas has added over 170,000 jobs in the past year.
With the increasing demand for DFW office space, the tight leasing market makes great office lease deals hard to find. This 3rd 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 has absorbed over 1.8 million square feet of office space since last quarter. The Las Colinas office space submarket recorded the most absorption, with a total of nearly 500,000 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 now nearly 6% higher than they were at this time last year. This hot market is spurring over 9.1 million square feet of new office space construction in the DFW Metro area.
If you are seeking Dallas – Fort Worth office space for lease, it may be in your best interest to sign the longest lease term which you are comfortable with. Market rental rates have been rising faster than the annual rent escalations found in most leases. This trend is expected to continue as the cities continues to grow. You’ll want to be sure to not limit your future growth plans though.
Vacancy and Rental Rates
High demand for Dallas – Fort Worth office space has continued through 2016. The citywide office space vacancy rate has decreased to 15.0%, which is a fairly significant drop from 15.4% last quarter. DFW office space rental rates have risen slightly to an average of $21.79/sf for office space throughout the DFW market. This is up from an average $21.44/sf last quarter and significantly higher than the $20.61/sf twelve months ago.
Additional Information: Dallas – Fort Worth Office Market Report Q3 2016
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 Q3 2016 has been obtained from sources deemed reliable. While considered accurate, we make no guarantee, warranty, or representation about it.