Tuesday, August 02, 2005

Downtown Dallas & Uptown Real Estate News

Downtown Dallas & Uptown Real Estate News

Texas: Dallas Office Market Worst in U.S.?

DALLAS (Realtor.org) -- The Dallas-Fort Worth area's office property market continues to rank as the worst in the nation, according to a survey of 54 major U.S. metro areas by Property & Portfolio Research.

The market posted the highest first-quarter office vacancy rate, which is expected to lead to further drops in office rents. Among the companies taking advantage of these low rents is Fluor Corp., which recently announced plans to relocate its corporate headquarters from Southern California to the Dallas suburb of Irving. Completion of its building is slated for next April.

Area job growth, however, could be offset by a host of new construction that will add 2.7 million square feet of offices over the next two years.

"We have a tendency in this market to start overbuilding before demand catches up with supply," says Daryl Mullin, senior director of Cushman & Wakefield of Texas Inc.

Nevertheless, Dallas' central business district recorded a 28.3-percent vacancy rate and will soon welcome two new major office projects: the 18-story One Victory Park and the $100 million One Arts Plaza.

Source: Wall Street Journal (07/27/05); Sadovi, Maura Webber