The Dallas office market isn’t just showing renewed signs of life in a post-COVID world, it’s blossoming.
“Leasing activity is picking up from the lull in 2020 and is almost 90 percent of the way back to pre-COVID levels, and more than 40 leases larger than 50,000 square feet have been signed since March 2020,” shares Kari Beets, Senior Research Manager at JLL. “Sublease space increased in Q3 2020, but has remained fairly stable since.”
She says development is picking up as well, with several spec projects scheduled to break ground with little or no pre-leasing. Though vacancy for Dallas overall is 4.1 percent higher than in Q1 2020, vacancy in Class A product built after 2010 is only up 1.6 percent.
“The ‘flight to quality’ is a trend that has been ongoing for the past few years and continues to have a large impact on the Dallas office market,” Beets says. “New Class AA space has seen significant activity and absorption, while older product stays stagnant.”
Josh White, Executive Vice President with CBRE’s Advisory and Transaction Services group in Dallas, adds that the companies that are confident in committing to an office lease are doing so because they believe that culture is the life force of their business and that a vibrant, amenity-rich office solution is a key component to building and maintaining a strong culture. Click to read more at www.rednews.com.