North Dallas new office buildings leasing, but some taking additional time to stabilize
Dallas’ northern suburbs have been a key area of new office development the last several years, mostly due to the large corporate campuses that have opened.
January 23, 2019
- Dallas’ northern suburbs (from Legacy to Richardson | Plano) have been a key area of new office development the last several years, mostly due to the large corporate campuses that have opened.
- In addition, multi-tenant office buildings have been developed, many breaking ground with little to no leasing to capitalize on the area’s rising rent environment.
- We looked at almost a dozen of Class A assets that were delivered between mid-2014 to 2018 to understand lease-up dynamics and timing. These properties totaled 2.5 million square feet.
- We estimated that the buildings were essentially stabilized when they hit 90-percent leased. For those stabilized properties, it took 8 quarters, on average, to hit that level.
- While a few properties in our review are still in early lease-up, others are taking additional time to stabilize despite the area’s strong tenant demand.
Source: JLL Research