July 14, 2017
Connect Media recently reported that Dallas-Fort Worth was leading the way in a variety of office indicators, such as leasing and construction. The article came from a Cushman & Wakefield report, and, as a follow-up, Connect caught up with Cushman & Wakefield associate Wills Bauer for additional information.
Q. The report Cushman & Wakefield released talked about the entire Dallas-Fort Worth office market. What submarkets are seeing the most momentum, and why?
A. The two submarkets that are seeing the most construction activity and highest prices are Uptown/Arts District, and Legacy/Frisco. Legacy/Frisco has been a target for many corporate relocations. Meanwhile, with multiple Class A+ buildings under construction or renovations in Uptown and the Arts District, businesses are continuing to weigh their options to relocate in this area. Las Colinas, incidentally, is not far behind these markets in terms of momentum, as businesses are starting to recognize Las Colinas’ proximity to Love Field as a factor in their consideration. They can offer employees and clients the choice to use either Love or DFW (Dallas-Fort Worth International) Airport. That said, pricing and rental rates in Las Colinas are considerably lower than the other two markets.
Q. Are all lease rates trending upward? Or is it submarket-specific?
A. Lease rates have been steady through most of 2017, so far. We’re waiting to see if that will hold true through the end of the year, especially with new buildings delivering throughout the remainder of 2017 and into 2019.
Q. What is your forecast for office leasing during the rest of 2017?
A. I believe leasing velocity will continue to be strong for midsize leases throughout the rest of the year. I also think we’ll see another announcement or two of larger deals before the end of the year, in the form of a significant consolidation, or relocation.
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