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This year’s major corporate office deliveries highlights the “real” increase in speculative multi-tenant space

  • ​Over the last few years, the percent of Dallas office space under construction that was pre-leased or build-to-suit for major tenants was extremely high – averaging 65 to 70 percent.
  • This high percentage was driven by both large, multi-million square foot hubs built for the likes of Toyota and  JPMorgan Chase, as well as smaller users (such as CoreLogic in Cypress Waters and Raytheon in Plano).
  • 2017 has been a landmark year with the largest of the corporate campuses delivering – which has rapidly shifted the percentage our level of “pre-leasing” activity.
  • Currently, the JLL reports that the US average is around 49 percent, compared to Dallas at 22 percent.
  • For Dallas, our percentage will shift lower next quarter as  Liberty Mutual’s 1.1 million square foot campus delivers.
  • What is important here is that the amount of “spec” space in Dallas has been quietly trending higher the last couple of years – effectively “masked” by these major space occupiers that were also under construction.
  • Today, of the 6.4 million square feet that is under construction, 5.0 million square feet of space remains to be leased – which means we need continued strong job growth to drive lease-up.  ​

Source: JLL Research  ​

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