Q2 2019: DFW Office Market Report
Sustained demand driven by in-migration and job growth continue to provide a strong foundation for the DFW office market. The region gained more residents than any other metropolitan area in the country (131,800 YOY) and, with over 100,000 new jobs added, finished second to the New York City metropolitan area in terms of absolute growth. While some indicators suggest the possibility of a global and national slowdown, DFW’s strong economic and real estate fundamentals position it favorably in contrast to coastal markets as the real estate cycle transitions.
- 9 M square feet is currently under construction with preleasing accounting for 46%. DFW ranked third among US metros.
- DFW’s rent growth YOY for Q2 was 2.1%, less than the national average of 2.3%. Class A rent growth was reported at 3.2%.
- DFW population growth topped Texas metros accounting for more than 1/3 of Texas’ growth (131,800 residents YOY).
- Cautious optimism prevails in DFW as signs of continued growth buffer a growing awareness that the current economic expansion has eclipsed the longest expansion period on record.
- Flight to quality continues as corporate America’s emphasis on recruiting and retention continues to fuel absorption in Class A buildings and the repositioning of well-located Class B properties.
- Coworking space options increasing evidenced by WeWork’s Q2 announcements (Weir’s Plaza 71,598 SF and Legacy Town Center II 53,000 SF); coworking alternatives are gaining market influence.
|1||Lockheed Martin||431,579 SF||5401 N Beach||New-to-Market||Northeast Ft Worth|
|2||Tenet Health||372,931 SF||Intl Plaza 1||Relocation||Quorum/Bent Tree|
|3||Nokia||350,000 SF||Cypress Waters||Relocation||DFW Freeport/Coppell|
|4||Blucora||150,000 SF||Cypress Waters||Relocation||DFW Freeport/Coppell|
|5||Salesforce||100,000 SF||The Union||Relocation||Uptown/Turtle Creek|
|6||Wells Fargo||88,520 SF||Plaza at Solana||Relocation||Westlake/Grapevine|
|7||Kirkland & Ellis||65,986 SF||Weir’s Plaza||Relocation||Knox/Henderson|