Dallas/Fort Worth Office Market Highlights
3rd Quarter 2010
Dallas/Fort Worth office market continues to show signs of the affects of the national recession.
The office market ended the 3rd Quarter with a vacancy rate of 21.4%. This vacancy rate represented a (0.6) percentage point decrease over the previous quarter, when the rate was 22.0%. This change in vacancy rate occurred in a quarter where Dallas/Fort Worth saw 1,623,186 square feet in positive absorption and 50,485 square feet in deliveries. Quoted rental rates ended 3rd Quarter at $19.47 per square foot, down from $19.58 per square foot the 2nd Quarter 2010.
Vacancy
The overall vacancy rate in the Dallas/Fort Worth office market ended 3rd Quarter 2010 at 21.4%, down from the previous quarter, when it was 22.0%. This (0.6) percentage point change from the prior quarter compares to a 0.4 percentage point increase since the 3rd Quarter 2009, when the vacancy rate was 21.0%.
At the end of the 3rd Quarter 2010 there was 53,731,119 square feet of vacant space in the Dallas/Fort Worth office market. In the 1st Quarter 2010, 55,555,325 square feet lay vacant, and in the 3rd Quarter 2009, 52,602,606 was vacant.
Absorption & Leasing Activity
In the 3rd Quarter 2010, the Dallas/Fort Worth office market had positive net absorption of 1,632,186 square feet. This compares to negative net absorption of (475,615) square feet in the previous quarter, and negative (384,169) square feet in the 3rd Quarter 2009.
Gross absorption was 5,464,431 square feet in the Dallas/Fort Worth office market in 3rd Quarter 2010. In the previous quarter, gross absorption was 4,126,443 square feet, and in the same quarter a year ago, gross absorption was 4,443,048 square feet.
Leasing activity was 3,792,743 square feet in Dallas/Fort Worth in the 3rd Quarter 2010. Leasing activity was 3,066,094 square feet in the 2nd Quarter 2010, and 2,715,032 square feet in the 3rd Quarter 2009.
Rental Rates
Quoted Rental rates saw a $0.11 per square foot decrease from the 2nd Quarter 2010 to the 3rd Quarter 2010 in Dallas/Fort Worth. Rates stood at $19.58 per square foot at the end of the 2nd Quarter 2010, and ended 3rd Quarter 2010 at $19.47 per square foot. At the end of the 3rd Quarter 2009, quoted rental rates were $20.00 per square foot.
Dallas CBD/Uptown Turtle Creek
The Dallas CBD & Uptown Turtle Creek office market’s class “A” market consisted of 57 projects with 29,602,766 square feet of office space at the end of the 3rd Quarter 2010. The class ‘B” market included 72 buildings totaling 9,601,206 square feet, and the class “C” market consisted of 53 projects with 4,721,745 square feet.
Net absorption for the overall Dallas CBD office market was positive 204,674 and the Uptown Turtle Creek class A, B, & C office market was positive 34,108 square feet in the 3rd Quarter 2010. Overall vacancy within this market was 29.5% for CBD and 22.7% for Uptown Turtle Creek at the end of the quarter. As of the 3rd Quarter 2010, quoted rental rates for available office space (all classes) averaged $18.59 for CBD and $27.55 for Uptown Turtle Creek within the Dallas CBD/Uptown Turtle Creek market.
Far North Dallas
The Far North Dallas office market’s class “A” market consisted of 93 projects with 19,966,866 square feet of office space at the end of the 3rd Quarter 2010. The class ‘B” market included 271 buildings totaling 18,147,036 square feet, and the class “C” market consisted of 24 projects with 791,674 square feet. Additionally, there were 74 owner-occupied office buildings within this market containing roughly 7,798,472 square feet of space.
Net absorption for the overall Far North Dallas class A, B, & C office market was positive 626,695 square feet in the 3rd Quarter 2010. Overall vacancy within this market was 22.2% at the end of the quarter. As of 3rd Quarter 2010, quoted rental rates for available office space (all classes) averaged $20.43 within the Far North Dallas market.
Las Colinas
The Las Colinas office market’s class “A” market consisted of 61 projects with 15,329,145 square feet of office space at the end of the 3rd Quarter 2010. The class ‘B” market included 167 buildings totaling 14,593,469 square feet, and the class “C” market consisted of 14 projects with 691,783 square feet. Additionally, there were 46 owner-occupied office buildings within this market containing roughly 5,151,457 square feet of space.
Net absorption for the overall Las Colinas class A, B, & C office market was positive 439,524 square feet in the 3rd Quarter 2010. Overall vacancy within this market was 22.0% at the end of the quarter. As of 3rd Quarter 2010, quoted rental rates for available office space (all classes) averaged $19.77 within the Las Colinas market.
Central Expressway
The Central Expressway office market’s class “A” market consisted of 23 projects with 6,647,336 square feet of office space at the end of the 3rd Quarter 2010. The class ‘B” market included 69 buildings totaling 5,902,788 square feet, and the class “C” market consisted of 17 projects with 633,631 square feet. Additionally, there were 23 owner-occupied office buildings within this market containing roughly 1,398,720 square feet of space.
Net absorption for the overall Central Expressway class A, B, & C office market was negative (107,552) square feet in the 3rd Quarter 2010. Overall vacancy within this market was 15.6% at the end of the quarter. As of 3rd Quarter 2010, quoted rental rates for available office space (all classes) averaged $20.42 within the Central Expressway market.
Fort Worth CBD
The Fort Worth CBD office market’s class “A” market consisted of 14 projects with 5,506,275 square feet of office space at the end of the 3rd Quarter 2010. The class ‘B” market included 32 buildings totaling 2,943,683 square feet, and the class “C” market consisted of 18 projects with 833,371 square feet. Additionally, there were 15 owner-occupied office buildings within this market containing roughly 1,683,935 square feet of space.
Net absorption for the overall Fort Worth CBD class A, B, & C office market was positive 114,495 square feet in the 3rd Quarter 2010. Overall vacancy within this market was 11.2% at the end of the quarter. As of 3rd Quarter 2010, quoted rental rates for available office space (all classes) averaged $21.39 within the Fort Worth CBD market.
Fort Worth Suburban
The Fort Worth Suburban office market’s class “A” market consisted of 8 projects with 1,507,440 square feet of office space at the end of the 3rd Quarter 2010. The class ‘B” market included 180 buildings totaling 10,705,856 square feet, and the class “C” market consisted of 88 projects with 2,476,660 square feet.
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