Q216 Dallas Office Market Analysis
- While other parts of the region are contracting, Dallas/Fort Worth is still exhibiting signs of expansion, given the 3.6% year-over-year employment growth (120,000 jobs added), rising rents and new groundbreakings.
- Gross asking rents continued to experience growth in Q2 2016, with Class B logging more pronounced growth than Class A at 4.5% and 1.1%, respectively.
- For the 24th consecutive quarter, DFW posted positive net absorption, totaling 1,285,487 sq. ft. for Q2 2016 and about 2.9 million sq. ft. year-to-date.
- Market-wide availability decreased by 40 basis points (bps) to 23.3% year-over-year in Q2 2016, a forward-looking indication that considerable net absorption is expected to commence in the coming quarters.
- there were five office projects that delivered in Q2 2016, all of which were Class A, totaling just under 700,000 sq. ft. of new inventory and a combined preleased rate of 22%.