With the 2nd quarter of 2020 coming to a close, we readily collected and analyzed preliminary data to provide a quick update of the DFW Office market.
Our Three Key Takeaways:
1. Approximately 3 Million SF of Total Available Space was Added to the Market
- Nearly 2.4 Million SF of Direct Space
- Over 600,000 SF Sublease Space
2. Leasing Activity Dropped by about 37% from Q1 2020
3. Overall Rental Rates Remain Mostly Unchanged
- Class A direct rates started seeing a decrease from $31.41 to $31.01
- Class B spaces and overall subleasing rates saw a slight increases quarter-over-quarter
DFW Office Market: Q2 2020 vs. Q1 2020
| Period | Total Vacant SF | Total Vacant Percent % |
Total Available SF Direct |
Total Available SF Sublet |
Total Available SF |
Total Available Percent % |
Leasing Activity Deals |
Direct Rental Rates |
Sublease Rental Rates |
|
| Overall | Q2 20 | 54.4 M | 16.6% | 59.4 M | 6.6 M | 65.9 M | 19.7% | 599 | $27.79 | $23.62 |
| Q1 20 | 52.7 M | 16.1% | 57.0 M | 6.0 M | 62.9 M | 18.8% | 950 | $27.87 | $23.50 | |
| Change (+/-) | +1.7 M | +0.5% | +2.4 M | +0.6 M | +3.0 M | +0.9% | -351 | -$0.08 | +$0.12 | |
| Class A | Q2 20 | 30.8 M | 19.1% | 33.3 M | 4.6 M | 38.0 M | 22.7% | 170 | $31.01 | $24.84 |
| Q1 20 | 30.2 M | 18.7% | 31.7 M | 4.3 M | 36.0 M | 21.4% | 307 | $31.41 | $24.53 | |
| Change (+/-) | +0.6 M | +0.4% | +1.6 M | +0.3 M | +2.0 M | +1.3% | -137 | -$0.40 | +$0.31 | |
| Class B | Q2 20 | 23.5 M | 14.2% | 26.0 M | 2.0 M | 27.8 M | 16.7% | 429 | $23.56 | $21.04 |
| Q1 20 | 22.5 M | 13.7% | 25.2 M | 1.6 M | 26.8 M | 16.2% | 643 | $23.44 | $20.96 | |
| Change (+/-) | +1.0 M | +0.5% | +0.8 M | +0.4 M | 1.0 M | +0.5% | -214 | +$0.12 | +$0.08 |
Source: Cresa + CoStar