Downtown Dallas’ new office buildings leasing up as construction slows – is the timing right to go “spec”?
Since the start of this cycle, 3.2 million square feet of office buildings have been delivered in Uptown and the CBD.
March 25, 2019
- Since the start of this cycle, 3.2 million square feet of office buildings have been delivered in Uptown and the CBD.
- Currently, 2.5 million square feet has been leased in these assets – at among the highest rental rates in the market.
- Another 400,000 square feet of leasing will virtually “stabilize” these properties at 90 percent occupancy.
- Harwood #10 and The Luminary will deliver later this year. Both are still in early lease-up, averaging 41 percent.
- Weir’s Plaza (298,000 square feet) is the only project imminently breaking ground. It is 14 percent leased, although a large (confidential) tenant is reportedly in the final stage of negotiations.
- The strong leasing performance – combined with a lull in construction – sets the stage for the next wave of office development. The main question is whether to break ground now as “spec” to take advantage of market timing.
- Excluding Weir’s Plaza, 8 projects (3.2 million square feet) are on the drawing boards. Half are considering going spec to beat their competitors to market and fill this approaching new office product void.
Source: JLL Research