Park Central Dallas now seeing office rents rise after years of transportation impacts – is that the only driver?
Park Central is a close-in office submarket on US 75, south of the LBJ Freeway
May 29, 2019
- Park Central is a close-in office submarket on US 75, south of the LBJ Freeway. Due to its strategic location, it has been impacted by decades of road improvements to ensure the smooth flow of traffic around the region.
- Since US 75 was extended north, the area saw the development of a complex, 5-level overpass between 2002 and 2005, followed by the widening and addition of managed lanes to LBJ that was completed in late 2015.
- These extensive improvements, mandatory to accommodate the region’s growth, made this well-located office area inaccessible, causing vacancy to rise and rents to flatten, when most submarkets were seeing growth.
- Today, Park Central’s excellent regional access has returned. In addition, Park Central’s recent rent gains are being driven by high rates in nearby Preston Center, Central Expressway, and the Lower Tollway | Galleria area.
- These submarkets have seen significant rent growth in this cycle, upwards of 30 to over 40 percent – and now have per square foot premiums of as much as $20, making Park Central an affordable, well-located space option.
Source: JLL Research