Market Insights Dallas/Fort Worth 4Q 2020 - OFFICE
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Market Insights Dallas/Fort Worth 4Q 2020 - OFFICE Bradford Commercial Real Estate Services 3100 McKinnon Street, Suite 400 Dallas, Texas 75201 DALLAS-FORT WORTH OFFICE MARKET INSIGHTS 4Q2019 Table of Contents BRADFORD DALLAS-FORT WORTH OFFICE TEAM 1 DALLAS - FORT WORTH OVERALL MARKET INSIGHT 2 SUBMARKET EXPERTISE • Central Expressway • Dallas CBD • Fort Worth CBD 3 • Far North Dallas • White Rock/East Dallas • Las Colinas • LBJ Freeway • Mid Cities • Preston Center • Stemmons • Richardson/Plano • Uptown-Turtle Creek The information contained herein was obtained from CoStar; however, Bradford Companies makes no guarantees, warranties, or representation as to the completeness or accuracy thereof. The presentation of this property is submitted subject to errors, omissions, change of price or conditions prior to sale or lease or withdrawal without notice. 1 DFW OFFICE COVERAGE BinformedOFFICE MARKET EXPERTS Melanie Hughes Richmond Collinsworth Erik Blais Jared Laake Senior Vice President First Vice President Vice President Vice President 972.776.7046 972.776.7041 817.921.8179 972.776.7045 Dallas Dallas Fort Worth Dallas Susan Singer, CCIM Paul Richter Shane Benner Executive Vice President Vice President Vice President Brokerage Services 972.776.7036 817.921.8174 972.776.7043 Dallas Fort Worth Dallas • Bradford Corporate Office • Bradford Field Offices Bret Cooper Elizabeth Robertson Kyle Espie Market Director Market Director Senior Associate 972.776.7035 972.776.7199 972.776.7070 Dallas Dallas Dallas 2 3 Existing Inventory Vacancy Delivered Inventory Under Construction Quoted Period Net Absorption Under # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Rates Central Expressway Office Vacancy Central Expressway Office Net Absorption Construction 2017 Q3 20.0% 94 11,687,281 1,383,180 11.8% 19,993 0 0 0 0 $24.27 150,000 2017 Q4 94 11,687,281 1,445,654 12.4% (62,474) 0 0 0 0 $23.80 18.0% 100,000 2018 Q1 94 11,687,281 1,676,945 14.3% (231,291) 0 0 0 0 $24.62 16.0% Existing Inventory Vacancy Delivered Inventory Under Construction Quoted 50,000 2018Period Q2 94 11,687,281 1,621,655 13.9%Net Absorption55,290 0 0 Under0 0 $24.21 14.0% # Bldgs Total RBA Vacant SF Vacant % # Bldg Delivered # Bldgs Rates Central Expressway Office Vacancy Central Expressway Office0 Net Absorption 2018 Q3 94 11,687,281 1,732,613 14.8% (110,958) 0 0 Construction0 0 $24.64 12.0% 2017 Q3 94 11,687,281 1,383,180 11.8% 19,993 0 0 0 0 $24.27 20.0% (50,000) 2018 Q4 94 11,687,281 1,738,383 14.9% (5,770) 0 0 0 0 $24.56 10.0% 150,000 2017 Q4 94 11,687,281 1,445,654 12.4% (62,474) 0 0 0 0 $23.80 18.0% 2019 Q1 94 11,687,281 1,599,451 13.7% 138,932 0 0 0 0 $24.19 100,000 (100,000) 2018 Q1 94 11,687,281 1,676,945 14.3% (231,291) 0 0 0 0 $24.62 16.0% 8.0% 2019 Q2 94 11,687,281 1,632,723 14.0% (33,272) 0 0 0 0 $24.87 50,000 (150,000) 2018 Q2 94 11,687,281 1,621,655 13.9% 55,290 0 0 0 0 $24.21 14.0% 6.0% CENTRAL EXPRESSWAY2019 Q3 94 11,687,281 1,718,370 14.7% (85,647) 0 0 0 0 $25.28 0 (200,000) 2018 Q3 94 11,687,281 1,732,613 14.8% (110,958) 0 0 0 0 $24.64 12.0% 4.0% 20182019 Q4 Q4 9494 11,687,28111,687,2811,738,3831,735,14314.9% 14.8% (5,770) (16,773)0 0 0 0 0 0 $24.56 0 $25.28 (50,000) (250,000) OFFICE OVERALL MARKET INSIGHTS 10.0% 2.0% (100,000) SUBMARKET20192020 Q1 Q1 9494 11,687,28111,687,2811,599,4511,800,25613.7% 15.4%138,932 (65,113)0 0 0 0 0 0 $24.19 0 $25.058.0% (300,000) 2019 Q2 94 11,687,281 1,632,723 14.0% (33,272) 0 0 0 0 $24.87 0.0% (150,000) 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 (same criterias as prior market reports) 2020 Q2 94 11,687,281 1,881,598 16.1% (81,342) 0 0 0 0 $24.706.0% 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 2019 Q3 94 11,687,281 1,718,370 14.7% (85,647) 0 0 0 0 $25.28 (200,000) Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 DFW Office Markets (A, B, C) 2020 Q3 94 11,687,281 2,157,508 18.5% (275,910) 0 0 0 0 $24.604.0% Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Binformed 2019 Q4 94 11,687,281 1,735,143 14.8% (16,773) 0 0 0 0 $25.28 (250,000) 2020 Q4 94 11,687,281 2,220,066 19.0% (62,558) 0 0 0 0 $24.642.0% Existing Inventory Vacancy Delivered Inventory Under Construction 2020 Q1 94 11,687,281 1,800,256 15.4% (65,113) 0 0 0 0 $25.05 (300,000) Net Quoted 0.0% 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 Period Under 2020 Q2 94 11,687,281 1,881,598 16.1% (81,342) 0 0 0 0 $24.70 # Bldgs Total RBA Vacant SF Vacant % Absorption # Bldg Delivered # Bldgs Rates Overall DFW Office Vacancy Overall DFW Office Net Absorption 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Construction Central Expressway Overview 2020 Q3 94 11,687,281 2,157,508 18.5% (275,910) 0 0 0 0 $24.60 Q3 Q4 Q1 Q2 Q3 Q4CentralQ1 Q2 ExpresswayQ3 Q4 Q1 Q2 Q3OfficeQ4 Quoted Rates Central Expressway Office Construction 2017 Q3 2,730 264,406,984 48,510,719 18.3% 1,308,391 8 761,409 50 9,084,594 $20.85 23.0% 2,000,000 2020 Q4Absorption94 11,687,281 2,220,066 19.0% (62,558) 0 0 0 0 $24.64 2017 Q4 2,746 266,087,848 49,676,840 18.7% 500,103 16 1,680,864 36 7,544,451 $20.89 The Central Expressway Submarket vs Previous Qtr vs 12 Months Ago $25.50 22.0% 1,500,000 10,000,000 2018 Q1 2,755 268,133,867 50,007,478 18.7% 1,730,021 9 2,046,019 31 6,038,657 $20.98 stretches along the North Central (62,558) -275,910 -16,773 1,000,000 21.0% Central Expressway Office Quoted Rates Central Expressway9,000,000 Office Construction 2018 Q2 2,766 269,828,558 51,592,739 19.1% (456,963) 9 1,622,598 26 4,787,304 $21.01 500,000 Expressway, with its southernmost Vacancy vs Previous Qtr vs 12 Months Ago 2018 Q3 2,774 270,826,591 52,068,313 19.2% 522,459 8 998,033 22 4,077,594 $21.21 Absorption vs Previous Qtr vs 12 Months Ago $25.50 $25.00 20.0% 0 point starting at the Dallas CBD and its 19.0% 18.5% 14.8% 10,000,000 8,000,000 2018 Q4 2,776 271,282,048 52,513,602 19.4% 10,168 2 455,457 24 3,979,708 $21.25 (500,000) northernmost point ending at the LBJ (62,558) -275,910 -16,773 19.0% U/C SF vs Previous Qtr vs 12 Months Ago 9,000,000 7,000,000 2019 Q1 2,784 272,448,703 52,213,407 19.2% 1,466,850 8 1,166,655 21 3,187,345 $21.23 (same criterias as prior market reports) (1,000,000) Freeway. Virtually all of the submarket’s Vacancy vs Previous Qtr vs 12 Months Ago 2019 Q2 2,790 272,807,836 51,832,825 19.0% 734,655 6 359,133 21 3,208,280 $21.37 0 0 0 $25.00 8,000,000 6,000,000 18.0%DFW Office Markets (A, B, C) (1,500,000) 19.0% 18.5% 14.8% $24.50 2019 Q3 2,794 273,319,639 53,344,934 19.5% (1,000,306) 4 511,803 23 3,378,368 $21.55 inventory runs along US 75. The submarket (2,000,000) DeliveredU/C SF SF vs Previousvs Previous Qtr Qtr vs 12 Monthsvs 12 Ago Months Ago 7,000,000 5,000,000 2019 Q4 2,799 274,767,157 53,674,314 19.5% 1,118,138 5 1,447,518 20 2,468,464 $21.38 17.0% has a heavy concentration of financial (2,500,000) 0 0 0 0 0 0 6,000,000 2020 Q1 2,802 274,836,417 54,528,894 19.8% (785,320) 3 69,260 17 2,399,204 $21.68 Existing Inventory Vacancy (3,000,000) Delivered Inventory Under Construction services, telecom, and tech firms. As $24.50 4,000,000 16.0% Net Quoted Delivered SF vs Previous Qtr vs 12 Months Ago 2020 Q2 2,804 275,258,375 55,848,914 20.3% (898,062) 2 421,958 17 2,145,246 $21.67 Period 2017 2017 2018 2018 2018 2018 2019 2019 2019 2019 2020 2020 2020 2020 Under Quoted Rates vs Previous Qtr vs 12 Months Ago $24.00 5,000,000 2017 2017 2018 2018 2018 #2018 Bldgs2019 2019 Total2019 2019 RBA2020 2020Vacant2020 SF2020 Vacant % AbsorptionQ3 Q4 Q1 Q2 #Q3 BldgQ4 Q1 DeliveredQ2 Q3 Q4 Q1 # Q2BldgsQ3 Q4 a whole,Rates it offers a large amount of Overall DFW Office Vacancy Overall DFW Office Net Absorption 3,000,000 2020 Q3 2,812 275,878,766 59,082,179 21.4% (2,612,874) 8 620,391 10 1,546,455 $21.74 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Construction 025 0 25 0 25 4,000,000 investment-grade property—about half of 2,000,000 2020 Q4 2,816 276,062,833 60,183,015 21.8% (916,769) 4 184,067 7 1,722,302 $21.95 2017 Q3 2,730 264,406,984 48,510,719 18.3% 1,308,391 8 761,409 50 9,084,594 $20.85 23.0% Quoted Rates vs Previous Qtr vs 12 Months Ago $24.00 2,000,000 3,000,000 the submarket’s RBA is rated as 4 & 5 Star.