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LEASING FALLS
Quarterly deal volume remained on par with the long-term historical average, totaling 3.5 million square feet (msf) but fell from the strong second quarter mark of 4.2 msf. Despite the slight drop in the third quarter, tenants have leased 14.6 msf in the four most recent quarters.
AVAILABILITY INCHES HIGHER
The overall market availability rate increased by 20 basis points from 25.2% to 25.4%. The continued flight to quality pushed the region’s Class A availability rate down by 60 basis points to 24.8%.
LITTLE CHANGE IN RENT
The overall asking rent ticked up by 0.1% to $24.17, but jumped by 1.8% year on year. The average Class A asking rent remained at $26.30, but rose by 1.4% year on year.
SALES DOWN
Office property sales during the first seven months of the year totaled $2.2 billion, a 25% decrease compared to the first seven months of 2017.
"Extensive development activity continues to expand the range of options that tenants can consider. Rent is still rising, but more tenants are taking advantage of significant discounts to be captured in Downtown and Las Colinas, as well as considering the next set of massive developments such as Cypress Waters and Headquarters Ranch."
Frank McCafferty, Executive Managing Director