In the coming months, with new supply below historical norms and as job creation accelerates, the Dallas-Fort Worth office market will see moderate gains in occupancy, according to a new report from Marcus & Millichap. Asset performance, however, will vary significantly by the property’s quality and location.
Most net absorption is occurring in Class A properties in Uptown and North Dallas, two submarkets expected to outperform others. Recent significant transactions cited in the report include leases to American Home Mortgage, Wingspan, and several healthcare-related companies.
Marcus & Millichap reports that the Class B market—especially those along Interstate 635 between North Central Expressway and Stemmons Freeway, which is in the midst of a four-year reconstruction project—will remain weak.
Office trades are expected to pick up, with more Class A properties coming to market. Cap rates on top-tier buildings are approaching previous lows, Marcus & Millichap says.
The full report includes notes on employment, construction, vacancy, rents, sales, the medical office sector, and cap rates. Current vacancy statistics are below.