The Dallas-Fort Worth office market absorbed 632K SF in the second quarter, down significantly from the year-ago period as vacancy rates ticked up, according to Cushman & Wakefield’s preliminary second-quarter and midyear office market numbers.
The region’s office market saw a large number of move-ins in the second quarter of 2017 — 1.4M SF, more than double this year’s rate. Year to date in 2018, the region has absorbed 963K SF of office space, compared to 3M SF in the same period a year ago. Vacancies at midyear rose to 18.5% from 16% a year ago.
About 4.4M SF of new office space is under construction in Dallas-Fort Worth, down from 6.2M SF underway at midyear 2017. Las Colinas has the most activity with about 2M SF underway, followed by Uptown (654K SF) and Legacy/Frisco (390K SF).
The overall gross asking rental rates for all classes inched up slightly to $26.41/SF, compared to $26.19/SF at midyear 2017; however, landlords are asking less for Class-A space — $29.75/SF compared to $31.20/SF a year ago.