In the past few years, more and more cities in the US have managed to get on a growth path that doesn’t seem to stop. Dallas is one of the best examples here, as not only did it manage to offer more than 700000 new jobs since 2010, but there’s also an increase in demand for new jobs as well. In fact, more than 100000 jobs are added annually in the region!
The best thing about all of this is that the jobs are offered in most of the industries, not only IT or manufacturing. The office demand is higher because of that, in fact, based on a JLL office report, Dallas has managed to absorb no less than 19 million square feet of office space.
Of course, this also increased the amount of new constructions in the region. In fact, the vacancy levels are at 17.7%, the lowest amount for the past 8 years or so. There is an effect here, what you have to note is that the rental rates are getting higher and higher. In fact, most of the submarkets are seeing an increase at this point.
Usually, the market had a very flat growth when it came to rental properties. The nice thing here is that the prices are still affordable for people that rent a property in here. The price increase is around 10% each year for rental properties. This does show that the local economy is going strong and there are a whole lot of people that appreciate the great opportunities and value delivered in the region.
According to the aforementioned JLL report, the Oak Lawn and Uptown inventory have around 11405 million square feet in total inventory. We can expect the short as well as long-term outlook to continue on this trajectory. Obviously, this is very important, and it can provide you with a really impressive set of benefits for the region. 2017 is set to be a very solid year, and it does provide some great results in the end.
Moreover, the office absorption is set to continue its trajectory, and it may soon reach the 5 million square foot milestone very soon. Why will this happen? It’s mostly caused by the delivery of some of the construction projects that have been in development for quite some time.
We can expect the rent value increase to get a bit lower, but it may still enter the 5-6% range most of the time, which is what matters the most. We may even see some drastic changes and higher costs in the case of the advanced or top end rates.
One thing is certain; there doesn’t seem to be any ceiling when it comes to the continued economic growth that you can see in Dallas at this time. There’s a lot of quality and value to be had in here, and in the end, it’s easy to see that Dallas is not stopping and it continues to grow well beyond expectations!