Dallas Market Guide
The Dallas office market is huge
Even so, absorption remains steady.
The Dallas office market consists of about 337,000,000 square feet of office properties consisting of just over 10,000 buildings. Over the last 2 years, the Dallas office market has continued to improve from the recession lows of 2019 and 2020. Even so, absorption (an indicator of whether vacant space is growing or shrinking) remains anemic. An example of this is provided in the table below:
|First Quarter Office 2020 Absorption:||328,000 Square Feet|
|Fourth Quarter Office 2019 Absorption:||1,140,000 Square Feet|
|Third Quarter Office 2019 Absorption:||1,150,000 Square Feet|
As you can see the first quarter has been characterized by a slow-down in the Dallas office absorption of vacant space in the area. The fact that we had positive leasing absorption continues to be a good thing, however; it is hard to predict weather the slow-down in the last quarter will result in a downward trend to negative absorption or just a blip that will bounce back in the second quarter.
Dallas office market vacancy rates have continued to improve. This is due in part to the lack of new office development. It stands to reason that if there aren’t any new buildings coming into the market and the existing vacant space gets leased up overall vacancy rates will continue to drop. The table below will show the historical trend over the last few quarters:
|Description||Total||Class A||Class B||Class C|
|1st Quarter Dallas Office 2012 Vacancy:||16.2%||17.9%||16.7%||10.6%|
|4th Quarter Dallas Office 2011 Vacancy:||16.3%||17.6%||17.0%||10.9%|
|3rd Quarter Dallas Office 2011 Vacancy:||16.7%||18.0%||17.5%||10.8%|
While this table shows improvement across all classifications of office space over time, the Dallas area continues to trail the national averages for vacancy. Currently Dallas is running about 5% above the national average of 12%.
We believe the abnormally high vacancy rates coupled by the recent quarters slow down in leasing absorption creates opportunity for our clients. We use this information as leverage when we assist our clients negotiating leases on their behalf. It is all part of the process we use to deliver the highest quality services and the most aggressive deal terms for you.
Dallas Office Space for Lease’s Dallas Market Office Guide, provides a comprehensive detailed overview of Dallas’ first quarter office market using CoStar Group’s entire database of existing and under construction office buildings in the Dallas Area.
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