214-380-4540 contact@whiteboxrealestate.com
  • Facebook
  • Twitter
  • YouTube
  • Instagram
  • LinkedIn
  • Facebook
  • Twitter
  • Instagram
  • Facebook
  • Twitter
  • YouTube
  • Instagram
  • LinkedIn
  • Facebook
  • Twitter
  • Instagram
Whitebox Real Estate
  • Home
  • About
    • About Us
    • Our Team
    • Our Process
  • Services
    • Tenant Representation
    • Investment Sales
    • Commercial Real Estate Dallas
    • Commercial Real Estate Houston
  • Global Presence
  • Resources
    • Market Research
    • Our Listings
  • Careers
  • Contact
Select Page

Dallas-Fort Worth Market Continues to Perform:
Positive Outlook for Remainder of 2019

 

Grant Pruitt, SIOR – August 29, 2019

The Dallas-Fort Worth Metroplex real estate market continues to tighten, and July marked the 111th month of positive employment growth with over 260 jobs added per day, for a total of 96,212 since July 2018. Unemployment in Texas is the lowest it has been since 1976, and DFW has held flat for the last year near the current 3.4% unemployment. Like many other major metropolitan areas, the labor shortage continues to put a strain on the economy.

Low vacancy and high rental rates are the name of the game in office and industrial. At 14.9%, office vacancy is down slightly from the prior year and approaching a ten-year low, a trend that we have observed for the last six quarters. Office rents are at an all-time high averaging $25.89/RSF, with Class A rates in Uptown commanding north of $60/RSF gross. Absorption is down 33.5% from the prior year, but construction deliveries are down 53.2%, and new development starts are down over 75% from its peak in Q4 2015. DFW has kept office development in check and has not overbuilt as they have done in the past.  Over the next 18 months, we expect decreased vacancy, and rental appreciation, albeit at a slower pace than we have seen. This is the healthiest the DFW office market has looked this late in an economic expansion.

Warehouse vacancy increased 0.3% from the previous quarter, averaging 6.2%, and approaching the all-time low of 5.09% in 2000. Average warehouse rental rates are near all-time highs at $5.42/RSF. Rent appreciation has outpaced Chicago and Atlanta at 35% above pre-recession highs. Year-to-date warehouse absorption totaled 5.5 million versus 7 million for the same period one year prior. New warehouse deliveries are down by 400,000 SF totaling 6.5 million SF, and construction is up at 31.5 million SF with 30% pre-leased. Aside from South Dallas which is 20% vacant, the rest of the metropolitan area is extremely tight. From a tenant negotiations standpoint, any sort of slowdown would be welcomed as there is a lack of inventory in many markets. The industrial market is more robust than it has ever been and boasts a more robust future, especially in an Amazon model and 3D printing world.

From a macro standpoint, there is enormous interest from coastal markets for relocation and investment, and the fundamentals for DFW continue to be encouraging with a positive 2019 outlook. In migration to the DFW and population growth will be critical to continue the growth trends DFW has experienced, but given the low taxes and exceptional standard of living, this should continue.

Learn more about the Dallas-Fort Worth office and industrial markets.

Submit a Comment Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • 9191 Winkler Drive – Houston, TX
  • 7919 Hennessy Lane – Spring/The Woodlands, TX
  • Development Site – 14545 Eastex Freeway – Humble, TX
  • 1820 Preston Park Blvd Plano TX 75093
  • Whitebox Real Estate – Inc. 5000

Recent Comments

  • Cristal Gonzalez on 13733 Neutron Road | 14,492 SF (.75 Acres) | For Sale
  • Jon Haynes on 4480 Mint Way
  • Collin John Koch on Our Listings
  • Why McCormick Stock Is Substantially Overvalued - News Slift on Hot Sauce Is Super Hot Right Now
  • Nicole Knox on 7,979 SF Office Sublease | Campbell Center

Archives

  • September 2023
  • August 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • July 2022
  • May 2022
  • March 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • April 2019
  • March 2019
  • February 2019
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • March 2018
  • February 2018
  • January 2018
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • May 2017
  • April 2017
  • February 2017
  • January 2017
  • November 2016
  • August 2016
  • July 2016
  • June 2016
  • April 2016
  • March 2016

Categories

  • Awards
  • Blog
  • Commercial
  • Commercial Real Estate Trends
  • Commercial Real Estate Webinar
  • Community News
  • CraneWatchDFW
  • Economy
  • Featured News
  • Housing & Residential
  • Industrial
  • Industrial Lease
  • Industrial Sale
  • Industrial Sublease
  • Land Sale
  • Market Report
  • Monthly Article
  • Newsletter
  • Office
  • Office Lease
  • Office Sale
  • Office Sublease
  • Retail Sale
  • Technology
  • Things To Do In Dallas
  • Uncategorized
  • Webinar
  • Whitebox News
  • Whitebox Wednesday
  • Workforce Re-Entry
  • Facebook
  • Twitter
  • YouTube
  • Instagram
  • LinkedIn
  • Facebook
  • Twitter
  • Instagram
© 2023 Whitebox Real Estate, LLC. All Rights Reserved