Office Leasing Booms in Third Quarter

By
Commercial Real Estate Agent with REATA Commercial Realty, Inc. Texas 537349

According to the latest stats from Cushman & Wakefield as reported by D Real Points, net absorption of office space n the DFW area for the third quarter alone is a positive 2 million square feet. That's incredible. Net absorption is the net change in occupied space.

If the total occupied space goes from 300 million square feet to 302 million square feet, that would represent 2 million square feet of positive absorption. This is the best indication of market demand for office space.

Overall leasing activity (total leases signed) was over 10 miilion square feet, but much of that was renewals for the same size space so it doesn't represent an increase in total occupied space. That's why total leases signed is usually far higher than absorption.

The most active areas included Las Colinas, Far North Dallas, west Plano, Frisco, Uptown and the central business district.

With all that demand, you would expect rental rates to go up and they have in some submarkets. But overall, C&W reports that the average rental rate fell by 27 cents to $20.11 per square foot. Class A averaged $24.47. Class A in Plano is now going for $27.00 - $32.00 plus electric.

With the demand being high and the best submarkets raising rates, now is the time to consider renewing your lease early if you have 2 years or less left on your current term.

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_________________________________________________________________________

Bob Gibbons

REATA Commercial Realty, Inc. | 1211 E. 15th Street, Plano, TX  75074

972-468-1946 p | 866-439-8015 f | 972-984-8580 m

bob@texastenantrep.com | www.TexasTenantRep.com

 

 

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Topic:
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Location:
Texas
Groups:
Collin County, TX Real Estate Professionals
Tags:
dallas
plano
frisco
uptown
office
absorption
lease
demand
office space
las colinas
rental rate

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