Monday, May 07, 2007

1Q 2007 D/FW OFFICE MARKET REPORT

Delta Associates released their 1Q 2007 D/FW commercial market report earlier this month. Overall, the company is reporting a positive outlook for the region stating, “The Metroplex economy will likely continue to strengthen during the balance of 2007, with a broad range of economic sectors contributing to the growth. Dallas/Fort Worth will likely achieve average employment growth of 77,000 jobs per year over the next three years – plenty of jobs to support a robust commercial real estate market into 2009.”
In 1Q 2007, overall vacancy in the Central Business District is reported at 21.7%, down from 26.8% in 2004. Class A is slightly lower at 20.1% This is based on 114 buildings and 35,732,909RSF. In the Uptown/Turtle Creek market, of just over 10 million RSF, vacancy sits at 9%, down from 13.7% in 2004. This is compared to a region-wide overall vacancy average of 16.93%.
Office space under construction/renovation in the CBD is quoted at approximately 1.2 million SF, 78% of which is pre-leased, with an additional 1.3 million SF under construction in Uptown/Turtle Creek, of which 38.4% is pre-leased.
Highlighting major building sales Downtown in the 1Q 2007 was the sale of Bank One Center for $216 million or $141/SF, above the regional sale average of $124/SF.