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Office Insight

United States | Dallas, TX

Report | Dallas Office Insight - Q4 2010


Dallas is forecast to be one of the hottest economic markets in the U.S. in 2011.  This, combined with positive net absorption and decreased vacancy, should push rates up in the near term.  Rents are still at or near the cyclical bottom, but rates are already increasing for a handful of Class A properties.  With demand up 20% from the previous year and almost no significant new construction, overall asking rents will rise very soon.

The good news for landlords is that besides increasing rents, they can scale back on incentives.  Many have begun this already.  Tenants with lease expirations over the next couple of years should take advantage of bottomed-out lease rates by:
  • Restructuring or recasting future lease obligations
  • Or, moving operations to more efficient, lower-cost facilities

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