Long a magnet for corporate relocations and expansions, Dallas-Fort Worth ranks among the top 10 metros nationwide with a strong demand for pre-leasing office space.
According to a March 14 report by CBRE Group, about 1.1 million square feet of roughly 3.75 million square feet of local office space expected to deliver between 2018 and 2022 has been pre-leased. That represents a pre-lease rate of 41 percent.
Robert Kramp, director of research and analysis with CBRE, says the figures show the region not only has a robust construction pipeline, but tenants are quickly snapping up space as it becomes available.
Demand for Dallas-Fort Worth office space stems from a couple of factors. One is the ease of securing real estate in the area.
"One of the reasons DFW has been a magnet for corporate relocations and expansions is the supply of Class A office space and companies can discretely negotiate terms moving into office space, versus getting into a bidding war," Kramp added.
And with a low unemployment and a demand for talent, companies are moving to and expanding in offices that offer amenities they think will be attractive to existing workers and new hires.
"Building owners are adding additional amenities like tenant lounges, WiFi connections throughout and fitness centers so that the average employee can stay at the building longer and be more efficient," said Shannon Brown, first vice president at CBRE.
With that in mind, neither Kramp nor Brown sees DFW's office space being overbuilt in the near future.
Austin, the other Texas city included in the report, has a pre-leasing rate of 53 percent for about 3 million square feet.