Wednesday, February 25, 2015
New forecast: D-FW will be one of the country’s top office building and leasing markets this year
Houston and Dallas-Fort Worth will lead the U.S. in new office building completions this year.
And both Texas cities are also at the top of the list of the greatest office leasing markets for 2015, according to a new forecast from Marcus & Millichap.
The commercial real estate firm predicts that Houston will see 11.5 million square feet of office building openings this year followed by the D-FW area with 6 million square feet.
“Corporate expansion abounds in the Metroplex, driving well-above-average job creation and a sizable increase in office development,” Marcus & Millichap said in the new report. “Collectively, State Farm and Raytheon’s campuses in Richardson, coupled with FedEx’s Plano headquarters and the FAA’s Fort Worth facility, will account for half of 2015’s new supply.
“While these projects are entirely spoken for, their delivery will spark some sizable move outs, causing fluctuations in vacancy,” the forecast said. “State Farm, for example, will vacate 1 million square feet of temporary office space in Richardson, while FedEx will leave behind 200,000 square feet in the East LBJ Freeway submarket.”
Marcus & Millichap is predicting that net D-FW office leasing will come in at close to 6 million square feet this year, behind only Houston and New York City for 2015.