Dallas-Fort Worth is proving itself to be one of the hottest markets in all areas of CRE. And right now, the numbers are pointing toward a third consecutive quarter of positive net absorption for the first time since 2018.

That’s according to CBRE’s DFW Q2 Office Market Report. In fact, Dallas’ numbers are trending up in nearly every regard.

The Bureau of Labor Statistics, as of May 2022, reported the national unemployment rate as 3.6%, maintaining the same level in April 2022. DFW’s unemployment rate during the same period was 3.3%, and Dallas has increased its number of non-farm jobs by 7.7% — nearly 300,000 — year-over-year.

Vacancy continued to drop and stood at 24.4%, down by 70 basis points from Q1 2022, marking yet another decline in vacancy and the longest streak since 2019, Deliveries were up 76.1% from 327,400 square feet to 576,550 square feet in Q2 2022 due to the recent completion of The Epic — Phase II and the PGA of America HQ.

Office in and around DFW continues to show signs of recovery, comparable to that of Boston, Manhattan and Houston due to ever-growing tenant requirements and competitive leasing activity, based on the report. The submarket has seen many new projects this year and quite a few are expected to break ground in the coming months.

One of the largest projects to break ground in Q2 was 2323Springs in Uptown for 622,452 square feet. Quoted face rates increased from $30.93 gross per square foot to $31.23 gross per square foot with Far North Dallas and Richardson/Plano leading the charge. Sublease availability rose to 9.4 million square feet, representing over 4% of total inventory and 14.7% of total availability with Class-A properties, making up roughly 72% of all sublease listings.

Simply, DFW’s office rebound is one of the best in the U.S. This much is clear. Still, CBRE Econometric Advisors have expressed concern about the current effects of inflation on the real estate market and advise businesses to tread, still, with caution.

“Our baseline view expects the Fed will be able to restrain inflation to roughly seven percent by year-end,” CBRE stated. “The labor market will also soften, with the unemployment rate increasing to the mid-four-percent range. Once inflation is tamed, both capital and real estate markets should become more predictable again.”

There will continue to be a flight to quality where newer, highly amenitized renovated buildings will have the most activity. Other projects will continue experiencing lower rent growth and shorter lease terms for new and renewing tenants. That said, CBRE said DFW should be able to sustain healthy fundamentals due to its stable local economy and unwavering demand.

JS International Grill, LLC a limited liability company leased 3200 square feet at 100 South Central Expwy in Richardson, Texas. Keith Otto with Otto International Realty LTD. Company represented the tenant and Wil Logan represented the landlord, Hartman Income REIT.

You’re sitting in your office having a cup of coffee and reading the newspaper. Great news all around. Your city is a top-five metropolitan area in the country and growing. Job growth is phenomenal. Shiny new buildings everywhere.

North Texas 2022? Perhaps, but also Detroit 1950.

Living in North Texas today, it’s easy to take for granted that we lead the nation in job growth and in-migration. Since 2010, the U.S. Census Bureau estimates the population of the Dallas-Fort Worth metro area has grown by 23.1%—the most of any metropolitan area in the country for the same period.

It’s expected that DFW will overtake Chicago as the nation’s third-largest metro area by the 2030s.

Much of this growth is attributed to the uptick of companies and workers relocating from other states. Our region has a lot of positive benefits that attract businesses and people – we have all heard them many times: low regulatory climate, no state income taxes, affordable housing, and a diverse economy. Click to read more at www.dmagazine.com.

Edge Realty Partners, a leading commercial real estate firm providing national brokerage, development, and investment sales services, announced an agreement with DLC Management Corp. to lease more than one million square feet in two premier power centers in North Texas – The Village at Allen and White Rock Marketplace.

The Village at Allen
Built in 2009 and totaling more than 836,000 square feet, the Village at Allen has become an important commercial hub in the Allen market. The center’s tenants range from well-known shopping destinations to entertainment, dining, and fitness, in addition to being home of the fan-favorite hockey team, the Allen Americans. Retailers include Target, Dick’s Sporting Goods, Five Below, Burlington, T.J.Maxx, and Best Buy. The Village at Allen is also home to a variety of restaurants including Kelley’s at the Village, Uncle Julio’s, and BJ’s Restaurant & Brewhouse.

White Rock Marketplace
Also managed by DLC Management Corp. and owned by an affiliate, White Rock Marketplace is located at the northwest quadrant of Garland and Jupiter Roads in Dallas. The shopping center totals 274,822 square feet, and is anchored by Home Depot, and complemented by additional shopping, fast-food favorites, and fitness centers. Retailers include Planet Fitness, Shoe Carnival, Marshalls, and Burlington.

Munsch Hardt Kopf & Harr, P.C. (Munsch Hardt), in conjunction with HPI and Stream Realty Partners (Stream), recently signed a new, 15-year office lease for its Dallas headquarters in Ross Tower at 500 N. Akard St. Ross Tower is a 45-story, 1.1-million-square-foot, Class-A office building that has undergone a $20 million capital improvement project and features world-class amenities.

The commercial law Firm, founded by Rick Kopf and Steve Harr, as well as the late Russ Munsch, signed its first lease with the office property in 2005, occupying floors 36, 38 and 39. Under its new lease, the Firm will relocate to three consecutive floors, 40, 41 and 42.

Today, Munsch Hardt has 176 employees in Dallas, 50% more than when first committing to Ross Tower. Since current CEO Phil Appenzeller took over the reins, the Firm has been focused on growth, adding notable litigation, corporate and real estate attorneys over the past 10 years and earning record profits in 2021.

Stream Managing Directors Craig Wilson and Dan Harris, Vice Chairman Randy Cooper, and Executive Vice President and Partner Tim Terrell represented Munsch Hardt in the renewal. Stream is a national real estate services, development and investment firm headquartered in Dallas. Global architecture and design firm Gensler, which originally designed the Firm’s current Dallas office, as well as the Firm’s 2022 office space in Houston, Texas, is working on efficient architectural plans to allow the Firm continued growth. Pacific Builders has been retained as the General Contractor on the project, with a projected move-in date of Fall 2023.

Neiman Marcus Group is creating three new corporate hubs to promote innovation and collaboration among its employees. It will debut these office hubs within the next year: one each in Dallas, New York City, and Bangalore, India.

The Dallas hub will be Cityplace Tower in Uptown—selected for its close proximity to its flagship store Downtown and its historically highest-grossing store at NorthPark Center. In May, the Dallas City Council approved a $5 million incentive package to keep the luxury retailer in Dallas, fending off efforts by Irving and Plano to lure the company to the suburbs.

According to Neiman Marcus Group’s EVP, Chief People and Belonging Officer Eric Severson, the new Dallas hub will be an innovation center and a place where associates can gather, meet, and strategize.

“The old way of thinking one person to one seat and that the individual stays in his or her assigned seat all day isn’t conducive to the way people work now,” Severson told D CEO. “People now know corporate roles can be productive wherever. We want to create a space where people can come to when they want or need to come together with other people.” Click to read more at www.dmagazine.com.