Texas Office Market Update | Q3 2017

by CoyDavidson on November 1, 2017

The State of the Texas Office Market

Third Quarter 2017 Office Market Reports for Austin, Dallas-Fort Worth and Houston.

Austin’s office market sees continued construction and rising rental rates

Austin Office Market Report | Q3 2017
Austin’s office market sees continued construction and rising rental rates. As predicted, the office market has remained extremely strong and rates have seen a slight increase over the past quarter. The trend of big companies eating up large spaces has become the norm and the expansions of tech giants and co-working spaces have continued to embolden landlords and developers to bring a speculative product to the market. Unfortunately for tenants, not enough of this product is becoming available beyond the preleasing phase to have a meaningful impact on rates or landlord concessions… read the full article

Large Corporate Relocations Propel DFW Absorption

DFW Office Market Report Q2 2017

Dallas-Fort Worth Office Market Report | Q3 2017
Large corporate relocations continue to generate buzz in the Dallas-Fort Worth real estate market. So far, Far North Dallas has seen more absorption in 2017 than the whole market had in all of 2016. After delivering their 2.1 million square foot headquarters in June 2017, Toyota has occupied the space, accounting for 70% of Far North Dallas’ YTD absorption. 2017 has already exceeded 2016’s annual net absorption by 1.1 million square feet. Multitenant office product has accounted for only 20% of the total net absorption and is lagging behind the same period in 2016 by almost a million square feet. Corporate relocations have been the fuel for this DFW real estate boom, but will this continue?… read the full article

Houston’s office market vacancy rate continues to struggle amid $50 crude prices

Houston Office Market Report | Q3 2017
Houston’s office market continues to struggle as U.S. crude prices waiver around $50 per barrel. According to the U.S. Energy Information Administration (EIA), they are expected to stay in this range through 2018. With no indication that prices will rise substantially over the next few years, vacant office space placed on the market by firms in the energy industry will take longer to absorb. Recent news articles indicate that some of the large energy giants reported profits in the second quarter. However, profits were largely driven by lean budgets and staff reductions… read the full article

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