Snapshots

Leasing in new office deliveries – exceedingly active in Dallas over the last 12 to 18 months

One telltale metric that clearly measures a market’s health is lease-up performance in the newest office deliveries.

February 10, 2020

 

  • In buildings delivered in Dallas since 2015, there is not quite 1.2 million square feet of space available.
  • As highlighted above, minimal availability exists in buildings that came on line in 2015 and 2016.   Surprisingly, this is also the case for recent projects that delivered during 2018 and 2019. 
  • At 426,000 square feet, only 2017 assets have any notable space currently available.  This translates into 14.7 percent of that year’s delivered inventory, which is still a strong performance.
  • To put that in perspective, in late 2018 when we last reported on this metric, 1.8 million square feet remained available in projects delivered since 2015.  That was 17 percent of the space on average – and reflected 20 to almost 30 percent remaining available in some years at that time. 
  • Today, those lease-up shares have changed!  Currently, 6.9 percent of the new space remains to be leased.  This average is more than 10 percentage points lower than a little over a year ago – and should be viewed as extremely tight given an overall vacancy rate in Dallas of 20.1 percent.

 

Source: JLL Research