Dallas Central Expressway – still affordable, despite neighboring submarkets helping drive recent rent gains

• Central Expressway is strategically located in Dallas’ urban core, offering strong regional access due to US 75.  This location also allows it to tap a broad labor pool across Dallas’ for a variety of industry sectors.
• Over the last several years, office demand has been high in neighboring Preston Center and Uptown as tenants sought high-quality space in walkable, amenity-rich environments.  This has fueled extraordinary rent growth, with average, full service Class A rents now topping $45 to $50-plus per square foot in these submarkets.
• Above average vacancy over the last decade-plus has kept rents lower in Central Expressway.
• This is no longer the case.  Currently, vacancy is near its all-time low – and rents are up 40 percent since  2014.
• Despite this rapid rise in rents, Central Expressway remains an affordable alternative to Preston Center and Uptown – offering a similar “urban” feel, with significant close by housing options.  
• In addition, the higher rents have spurred new investment, as well as re-investment, in prime office assets.  
• Central Expressway’s Class A rents are also very competitive to the neighboring Lower Tollway | Galleria area, whose more suburban character lacks today’s highly desired urban, live, work, shop, play features.

Source: JLL Research