Snapshots

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

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