A case of the “haves and have-nots” –Dallas’ older office buildings falling fast behind in tenant popularity
Excluding Dallas’ oldest submarkets, CBD and Stemmons, buildings built in 2000 and earlier have been under constant performance pressure during this economic cycle.
January 27, 2020
- Since 2015, absorption for these older assets totaled a “whopping” negative-4.0 million square feet. In comparison, properties delivered after 2000 saw 14 million square feet of positive net absorption over the period.
- Vacancy stands at 21.5 percent in the older assets, close to a 3-percentage point increase since 2015. The more modern buildings, in comparison, have been stable at 13.5 percent, despite many new speculative deliveries.
- This has helped drive rents and maintain a $6+ per square foot average rent premium in the newer properties.
Source: JLL Research