Texas Office Advisors publishes quarterly Texas Office Reports to keep our clients and commercial real estate tenants updated on all things office space throughout the State of Texas. Please contact us to receive the DFW Office Market Report – Q1 2018 or any of our future newsletters by email. You can also join our email list by filling out the brief form at the bottom of this page.
Large tenants keep market demand high
Demand remains high for Dallas and Fort Worth office space into 2018. According to the Bureau of Labor Statistics, the unemployment rate in the DFW Metropolitan Area dropped over the past year by 0.4% from 4.1% in February 2017 to 3.7% in February 2018. Both the United States and Texas unemployment rates have reduced to now current averages of 3.9%. The Dallas – Fort Worth area’s labor force is now 117,059 jobs greater than it was 12 months ago.
With Dallas – Fort Worth office space being in continuous demand, the tight leasing market is making great office space deals harder to find. This 1st Quarter 2018 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 had positive absorption of over 1.7 million square feet of office space so far this year. With nearly 7.5 million square feet of new office space currently under construction and over 20 million SF of office space delivered in recent years, developers are doing their best to keep up with continuous requests by growing and relocating tenants. The trend of growing rental rates has stabilized for now though throughout much of the Dallas – Fort Worth, TX metro. The current asking rates have remained fairly steady compared to 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. Until recently the 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 believed that the reason for the current rate flat-line is the large amount of product recently coming on to the market. It is important to plan for future business expansion needs though and not limit your long-term options.
Vacancy and Rental Rates
Rental rates have remained at a market-wide average of $26.64/SF. The total vacancy average for the Dallas – Ft. Worth office space market is now 18.7%. The vacancy amount has been trending up, but as stated earlier this is due to all of the new development taking place. The DFW market has seen an increase in office building property values and this is expected to increase the Tenants’ share of taxes and operating expenses in their rental rates as well.
Additional Information: DFW Office Market Report – Q1 2018
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 First Quarter 2018 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.