3 Dallas Submarkets Have Negative Net Office Absorption So Far In 2018

Photo credit: Courtesy of CBRE
899 Stemmons Freeway

Dallas' office market is having a good year, but things are not so rosy for submarkets named after major thoroughfares.

JLL's Q3 data shows that the Dallas area (excluding Fort Worth) has absorbed 1.7M SF of offices year to date, soaking up 0.9% of inventory. That was led by a strong Q3 that clocked 1.2M SF of positive net absorption.

But of the nine submarkets JLL tracks, three have negative absorption figures for the year.

Stemmons Freeway is hurting the most, with -2.1% net absorption so far this year. It has lost 186K SF of occupancy this year, with tenants giving back 49K SF in Q3. Its direct vacancy rate is sitting at 28.1% as we enter Q4.

LBJ Freeway had 112K SF of negative net absorption in the first three quarters of 2018, largely thanks to a moribund Q3. JLL reports the submarket clocked -143K SF of absorption last quarter, bringing its direct vacancy to 22.4%. Year to date, its absorption is -0.6% of inventory.

The North Central Expressway submarket has -181K SF of net absorption year to date, a loss of 1.7% of its stock. Q3 actually helped its numbers, with the area posting 29K SF of positive net absorption, and it isn't feeling the annual decrease as sharply — its direct vacancy is 13.8%, one of the stronger numbers in Dallas. (Overall, the city has 18.8% of direct vacancy.) At $30.17/SF average rent, the North Central Expressway is also commanding some of the highest average rents in Dallas.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's Dallas-Fort Worth Newsletters
Related Stories

JVP Development Is Betting $37M Of Its Own Money That Frisco Is Ready For Spec Office

Hedge Fund Bids $88M For Spirit Airlines' Former HQ

KKR-Affiliated Data Center Developer CyrusOne Names New CEO

Oyster Point's Second Phase Half-Leased As Kilroy Navigates Soft Lab Demand

BXP Closes In On Next D.C. Office Development As It Shrinks Assets

Clarion Under Contract To Sell 18-Story Seaport Office Tower

Oil Company Expands Again At Cash Register Building

BXP's 343 Madison Lands $1.2B Loan, Nears Deal With Equity Partner

D.C. Sues To Block HUD Headquarters Move To Virginia

Ken Griffin Completes Takeover Of Brickell Block, Setting Stage For $2.5B Megaproject

Private Equity Firm Buys Former Texas Instruments Campus For New Headquarters

DFW Office Footprints Likely To Shrink As AI Use Increases And Companies Battle For Talent