Wednesday, June 18, 2014

Forecast: Dallas-area office market expansion to continue through 2017

The Dallas area office market now has the “highest rent growth expectation in 16 years,” according to a new report from accounting giant PricewaterhouseCoopers LLP.

PwC’s second quarter real estate investor survey predicts that the  Dallas office market will have four years of continued expansion. The positive outlook for the local office market stretches through 2017, according to the new report.

Office rents are up by more than 4 percent area wide this year, according to the report. But the cost of office space is rising even faster in some hot business districts, including West Plano, Uptown and Preston Center.

“As this market moves through the expansion phase of the cycle, substantial planned new supply may negatively impact market conditions,” the report warns. “Estimates total more than 5 million square feet of new office stock entering this market in the next two years.

“Still, given the current strength of the Dallas office market, survey participants foresee rising property values of as much as 10 percent in the next 12 months.”

Steve Brown- Dallas News