Law firms are snatching up space in Dallas at an accelerated rate, particularly in top-of-the-line office product, as law firm business swells and competition to retain talent increases. This in turn is stirring midsize firms to take over the spaces left behind or renew their current leases at lower rates. The result: a whole lot of activity in Dallas office.
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According to a report from JLL, bigger law firms are vacating Dallas' central business district and opting for the newer, amenity-rich office spaces in places like Uptown. Even with rents as high as they are right now (the rate rent growth has begun to flatten this quarter at $27.20/SF, but rent is still higher now than it was in 2016 and will get higher, according to JLL’s research), the need to retain and recruit talent for their firms keeps these companies on the prowl for bigger and better spaces.
Law firms also are chasing corporate attention into the northern suburbs, opening satellite offices in places like Frisco and Irving to be closer to the new demand cropping up for their services.
Midway through the peaking phase of demand for office space, according to JLL, Dallas will continue to see a rise in demand for legal services space as well as other businesses. Pre-leasing numbers are high, and absorption has stayed abreast of the construction deliveries. Office vacancy throughout Dallas sits comfortably at about 19% despite the continued deliveries.
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