Savills Studley Releases Q1 2017 Market Report Findings for Dallas Fort Worth

Savills Studley, the leading commercial real estate firm specializing in tenant representation, has released its Q1 2017 Dallas/Fort Worth edition of the Savills Studley Office Market Report.

The quarterly report is an in-depth compilation of office leasing statistics and trends, major transactions, submarket comparisons, employment trends and investment and development trends specific to the North Texas area.

Highlights from the 2017 Q1 Savills Studley Dallas/Fort Worth Office Market Report include:

• The Dallas/Fort Worth office market cooled in the first quarter of 2017, with overall and Class A availability both increasing over 2 % and leasing activity of 3.3 msf below the long-term quarterly average of 3.5 msf. After record-setting sales totals in the second half of 2016 of over $5.1 billion, sales dropped to just under $600 million in the first quarter of 2017.

• Average asking rents have incrementally increased over the course of the current cycle. At $26.36, average Class A asking rents for the region in Q1 2017 are up 4 % from Q1 2016 and 16.2 % from Q1 2012. Nevertheless, of the 19 submarkets tracked in the Savills Studley Dallas/Fort Worth Office Market Report, only Preston Center saw average asking rents in Q1 2017 surpass the US Index.

• Driven by leases of over 150,000 sf executed for Goldman Sachs at the Trammell Crow Center and EnLink Midstream Operating at One Arts Plaza, Dallas CBD leasing activity in Q1 2017 and over the last 12 months has outpaced every other submarket except the North Dallas Corridor.

• Dallas CBD is arguably the most attractive submarket for millennials with a growing variety of retail and nightlife options, apartments 10 to 15 % cheaper than Uptown or Plano and amenity-rich, newly built or renovated office space. Facing a region-leading availability rate of 35.4 %, Dallas CBD landlords, developers and other stakeholders have put considerable effort into attracting tenants and transforming the area into a 24-hour community. As noted in the Dallas Savills Effective Rent Index report for 2017, tenants in the region as a whole saw concessions increase 4 % in 2016.

The Q1 2017 Savills Studley Dallas/Fort Worth Office Market Report as well as a national report and reports for each of the 29 major U.S. markets can be found at www.savills-studley.com.