5 Quick Facts To Get You Up To Speed On Q3 Office Reports
If you've missed all those Q3 meetings and emailed reports for the last 10 days, consider this your crash course in Q3 office data in DFW.
Job Growth Looks Solid
About 117,000 jobs were added in DFW from August 2015 to August 2016, PMRG reports. The only major industry that didn't see job growth is manufacturing and other services. The DFW unemployment rate ended August at 4.1%, outperforming both state and national unemployment rates, which stand closer to 5%.
Marketwide availability decreased by 60 bps to 22.7% in Q3. Total vacancy remained at 17.5%, showing no change from last quarter, according to CBRE. Sublease availability accounts for less than 11% of all available space (about 5M SF), which is a usual amount for the area.
Rents Fell, But Just A Hair
Quoted lease rates fell 0.8% from Q2, but are still up 9.4% year-over-year, which mean no one's concerned just yet. Class-A rents average more than $29 a foot, Class-B average more than $20/SF, and Class-C is $14/SF.
Positive Net Absorption, Again
For the 25th consecutive quarter, the DFW office market posted positive net absorption, totaling 1.7M SF, according to CBRE. That's despite significant additions to the market: Five products delivered this quarter accounting for 1.3M SF, including 530k SF at McKinney & Olive, 250k SF at Alcatel-Lucent Regional HQ in Plano and 198k SF at Tollway Center in Far North Dallas.
Construction Pipeline At Five-Year High
Of the 8M SF under construction, 36.5% is pre-leased. Far North Dallas (mostly the Upper Tollway and Frisco), Uptown/Turtle Creek and Las Colinas account for about 70% of the construction.