April 10, 2020
The Dallas-Fort Worth economy started 2020 strong, poised for a year of continued economic gains after leading the nation in job growth in 2019. Then, Madison Marquette says in its first-quarter office market report, the region withstood two shocks: the onset and spread of COVID-19, and a nearly 70% drop in oil prices.
Noting that the Metroplex’s office vacancy ticked upward to 20.7% during Q1, CBRE nonetheless says office-using employment is likely to withstand the pandemic’s fallout better than retail and hospitality.
Within office, Madison Marquette says, “All companies will likely experience stress in the coming months, but small and midsize companies, who more often rent in Class B and C properties, may feel the impact more acutely.”
However, CBRE says nationally as well as in North Texas, “the unique nature of this downturn should result in an unusually swift recovery that could begin as early as Q3 2020.”
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