DFW Metroplex Office Rents Surge
By admin on Mar 17, 2008 in Dallas County
As if to underline the continued reports of prosperity in the Dallas Metroplex’s business sector, rental rates for offices rose six percent in 2007, averaging $19.65 per square foot in the Dallas area. Many tenants in the area are moving from older, less expensive buildings into the more expensive, newly renovated spaces.Class A office spaces in Dallas was leasing in 2007 for an average of $24.75 per square foot, and some of the areas that saw the greatest climb in rents included Uptown and Turtle Creek, at $26.29 per square foot – a 9.6 percent jump, and the North Central Expressway, which saw an 11.3 percent increase in rental rates, raising them to $20.98 per square foot.
New Build outs Continue
The only thing that stymied the lease market in Dallas office spaces compared with other communities was the volume of available properties. Construction in Dallas office space continues, with 3.5 million square feet of new office space added to the market in 2007. For 2008, another 5.5 million square feet of office space are under construction.
The warehouse and distribution sectors dominated commercial business in North Dallas during 2007 with a vacancy rate of less than nine percent, and some of the largest manufacturing and distribution centers in the United States are under construction in North Dallas right now. This new development will add some 20 million square feet of space to the already massive Metroplex. This is the highest level of development North Dallas commercial real estate has seen since 1999.
