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Dallas Market Reports

Dallas Office Market

Average Asking Rent (Price/SF)      $25.46
Vacancy Rate (%)       20.2%
Net Absorption (SF)    995,908

The slowdown of the Dallas office market persisted through the third quarter, yet the market continued to showcase healthy fundamentals. Despite an increase in inventory, total vacancy across the market fell to 20.2%, dropping 50 basis points from the second quarter - indicative of spatial demand among tenants. Along with the increase in inventory, the quarter saw an approximate 1.2 million square feet of positive absorption. The Dallas-Fort Worth (DFW) office market saw only 2.6 million square feet of leasing activity during the quarter, marking light decrease from the prior quarter. The average lease size of 4,840 square feet represented a 600 square foot increase over the second quarter.

Dallas Industrial Market

Average Asking Rent (Price/SF)           $6.11
Vacancy Rate (%)             6.4%
Net Absorption (SF)      884,515

The Dallas/Fort Worth industrial metrics continue to indicate a slowing overall market. The third quarter of 2018 marked a continued downward trend in leasing activity, as the overall mark fell below 9.0 million square feet for the first time since the fourth quarter 2009. The quarter was also the market's 31th consecutive quarter of positive absorption, as nearly 900 thousand square feet of space was absorbed; however this represents a nearly 80% drop from second quarter 2018. This drop in absorption will make matching prior three-year overall average of 22.2M SF of absorption a near impossibility. Additionally, new construction continues rapidly within the market, as 23.1 million square feet is underway in the market. This is a decrease of 1.4 million square feet year-over-year and does show signs of a market continuing to operate from a position of strength. Upon arrival, this will increase the stock in the market by 3.0%. Additionally, this growth of new construction space puts Dallas/Fort Worth in a position where supply could outpace demand. Even with over half of the space pre-leased, nearly 12.0 million square feet of purely speculative construction is slated to arrive within the next two years. This continues to place the DFW market on the precipice of overbuilding in 2019 and beyond.



Dallas Office Market Report
3Q18
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Dallas Industrial Market Report
3Q18
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