- National Drivers:
- National Vacancy – 10.5% (Best Indicator of a Healthy Market)
- Rent Growth – 3.6%
- Under Construction – 135 million SF
- Sales Volume – 79 million
- Top Markets for Employment Growth:
- #1 DFW 3.4 % YoY
- #2 Austin 3.3% YoY
- #6 Atlanta 2.9% YoY
- National Average 1.7%
- Unemployment Rate @ 5%:
- Layoffs still low, quit rate high (employees feeling good about finding another job).
- Submarkets:
- High Number of submarkets vacancies declining across the board.
- Secondary markets w/ strongest occupancy trends – #3 Denton/Lewisville at 2.9%.
- Summary:
- Tenants moving from 3 star to 4-5 star office space to attract & retain quality employees.
- Expect Occupancy rates to continue to grow through 2018.
- DFW @ 15% vacancy rate (Due to high supply).
- 2000 McKinney Ave. 447,595 SF sold for $503/f at a 4.5% cap, A new record for Dallas Office Market.
by DAN CAMPANELLA, Broker/Owner @ R.E.INVEST Brokerage, LLC. on October 28th, 2016.
Source: CoStar