Cushman Study: Bargains Galore in Dallas CBD Office Space
Rents in the Dallas CBD are pretty darn cheap, when you compare them to the world’s top 123 global markets. We rank 81st, according to a new Cushman & Wakefield report. While the Dallas CBD is inexpensive by worldwide standards, rents continue to increase with overall asking rents in Class-A office properties rising 4.5% in 2013, placing Dallas’ CBD at 20th out 71 of nationally, says Cushman & Wakefield’s DFW market leader Steve Everbach. Several large lease commitments were made in 2013, including Santander Consumer Finance (370k SF), KPMG (160k SF), and Jackson Walker (104k SF).
Steve says many leases signed are resulting in the companies taking less space. The trend of companies lowering their average SF/employee is expected to continue in the years ahead as they seek ways to use real estate more efficiently, he tells us. Despite this trend, continued strong demand is expected in Dallas during 2014 as the economy continues to grow. As a result of the economic strength, job growth will continue and vacancy rates are expected to drop and rents to increase. Other local drivers for the increase in demand in the CBD are revitalization projects like Klyde Warren Park (pictured), the AT&T Performing Arts Center, and the new convention center hotel, all totaling over $500M in new investment, Steve says.