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The value of time (on the market, that is)

  • ​Building off our analysis of “stale” office space, this chart looks at the “value” of time on the market for Dallas.
  • Each dot in this chart represents a contiguous vacant space greater than 20,000 square feet, essentially a full floor. The line through each section shows the average asking rental rate for that group of available spaces.
  • By only looking at the larger vacancies, we are able to highlight the availabilities shaping the market.  With Dallas’ direct asking rent at $26.61, this shows that the “stale” spaces are acting as a drag on rents.
  • We highlighted two Dallas buildings above, to put into perspective the challenge of leasing spaces that were built at a time when tenants’ preferences were very different than today for floor layouts, parking, and the like.
  • While these spaces are in the CBD, the same issue of functionally obsolete space, influences our other submarkets.
  • The key here is that for the right tenant these CBD spaces could offer an opportunity.  In this case, the rental rate difference could be economical for a back-office operation seeking an urban environment.
  • There should be more than back office or non-office as a solutions to fill theses spaces.  Because this space would be utilized in other major markets, we need to change the development and redevelopment dialog here in Dallas.

​Source: JLL Research     

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