Q3 2019: DFW Office Market Report
With prices rising in coastal markets, institutional investors are turning to less expensive markets as lower-cost alternatives. Dallas-Fort Worth has continued to see investment growth as the market has experienced $2.1 billion in sales over the past 12 months. Corporate relocations and expansions continue to drive office demand in the area. Existing employers like AT&T, 7-Eleven, JPMorgan Chase, USAA, and Fannie Mae are expanding their local footprints. A highly skilled labor force, low business costs relative to coastal markets, a central location, accessibility, and competitive incentive packages offered by the State of Texas and local municipalities have made the region a hotbed for corporate expansion and relocations.
- American Airlines is scheduled to move into a 1.7 million-squarefoot new corporate headquarters in Fort Worth later this year, bringing an additional 1.3 million square feet of older second-generation space to the market
- Trammell Crow announced a proposal to build a one million square foot office campus in the Legacy business park area.
- The“Flight to Quality” trend continues to impact the area as occupiers relocate from aging product
- New construction and renovated properties full of tenant amenities are continuing to be an ideal choice for occupiers
- Office properties built before 2010 have seen negative demand (as tenants have downsized and/or moved to newer properties)