You know those episodes of The Twilight Zone where a guy wakes up to find that everything in his life has changed? He's living in another house; he has a different job; the president is someone new; and CBD office vacancies are actually higher than suburban office vacancies. Er…what? Reis analyst Brad Doremus says that bit about CBD and suburban vacancies isn't from The Twilight Zone. It's actually from Dallas. Unlike most of the rest of the country, CBD vacancy rates in Dallas are above those in suburban offices. |
| In Q410, CBD vacancies in the metro stood at 28%, 420 bps higher than suburban office properties. While this pattern's been ongoing for awhile, the spread between the two was much thinner as recently as early 2009. But in Q2 of that year, CBD vacancies began a steep climb while suburban vacancies only ticked up slowly. Between Q1 '09 and Q3 '10, the rate for CBD offices jumped 480 bps. In contrast, the suburban office rate was up just 90 bps. One bit of good news for Dallas CBD offices? Vacancies dropped in Q4 '10 by 70 bps, while the vacancy rate for their counterparts in suburbia was flat. |
CBD TWILIGHT ZONE
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Brad Doremus, Dallas CBD
