Thursday, January 08, 2015
Dallas was one of the top office leasing markets in the country in 2014
The Dallas-area ranked as one of the country’s top office leasing markets in 2014.
Commercial real estate firm DTZ said that Dallas had the fourth highest net office leasing in the U.S. last year with 4 million square feet.
That was behind New York City, Houston and San Diego, the nationwide real estate services firm said.
Total office leasing for the U.S. in 2014 was the highest since 2006 and rose 47 percent in the fourth quarter.
“If one annualizes the second half of 2014, the office sector has been absorbing space at nearly twice its historical average,” DTZ economist Kevin Thorpe said in the report. “Fundamentals still vary greatly by location, but the latest demand metrics can no longer be characterized as subpar. This is robust.”
Thorpe said the office market was one of the slowest real estate sectors to recover from the recent recession.
Nationwide there was there was 105 million square feet of office space under construction – up 76 percent from a year ago. About 6 million square feet is being built in the Dallas area.
Along with strong leasing, Dallas was also one of the country’s fastest growing office rent cost markets with an average 5.5 percent increase in rates in 2014, according to DTZ.