DALLAS VS NATION
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|Dallas historically has a much higher office vacancy rate than the nation . . . and it’s no different today. As of Q3 ’10, vacancy for Dallas office buildings sits at 24.7%, compared with 17.6% nationwide. Yet this may be misleading, Reis analyst Brad Doremustells us, in terms of relative performance over the past several years. There's been a noticeable decline in the size of the Dallas/US spread since '08. In Q2 ’08, the difference between the two rates reached 880 bps, with Dallas vacancies at 22% and the US at 13.2%. Yet beginning in Q3 ’08, the spread declined for seven consecutive quarters, reaching a low of 700 bps in Q1 ’10. The spread jumped 10 bps in Q2 ’10 but held flat the following quarter. Reis forecasts that the spread should remain roughly flat at 710 bpsfor the next several years.|