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LEASING INCREASES
Continued demand from larger tenants ranging from telecom to health care kept leasing on a steady track in the second quarter. Tenants have leased 14.2 msf in the four most recent quarters, on par with the long-term market average.
AVAILABILITY RATES DECREASES
The overall market availability rate decreased by 60 basis points to 25.7% for the second quarter. The region’s Class A availability rate also decreased by 60 basis points to 25.5% in the quarter.
FLAT RENT
The overall asking rent inched down from $23.95 to $23.91, but has increased by 1.1% year-on-year. The average Class A asking rent increased by 0.4% during the quarter to $26.27, and jumped by 2.5% year-on-year.
SALES DOWN
Office property sales during the last six months (through February 2018) totaled $1.7 billion, a 34% decrease compared to the previous six–month total of $2.7 billion.
"The region’s potent construction sector is ramping up. Ambitious projects are no longer being pursued in just North Dallas and Uptown, but in Downtown’s East Quarter and Tarrant County as well. This development puts pressure on owners in older buildings to make significant upgrades to their assets to stay relevant."
Frank McCafferty, Executive Managing Director