Snapshots

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

 

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