{"id":1054,"date":"2015-05-06T19:14:30","date_gmt":"2015-05-06T18:14:30","guid":{"rendered":"http:\/\/www.offices.net\/news\/?p=1054"},"modified":"2017-07-20T03:40:36","modified_gmt":"2017-07-20T02:40:36","slug":"texas-office-space-trends","status":"publish","type":"post","link":"https:\/\/offices.net\/news\/texas-office-space-trends\/","title":{"rendered":"Texas CRE: Office Space Trends &#038; Statistics"},"content":{"rendered":"<h2>Overview of the office market in Texas<\/h2>\n<p>According to a recent Cushman and Wakefield report, the office market in  the Lone Star state is robust and has been marked by a consistently  high demand for Class A space and an expanding occupier base. This is  particularly true of the Dallas-Fort Worth area, where a thriving job  market has prompted several corporations to relocate to larger premises.<\/p>\n<p>Towards the end of 2014, average vacancy rates in this area had dropped  from 17.9 per cent to 16.6 per cent, thus reaching their lowest levels  since 2010. By the end of Q4 2014, more than 13.8 million square feet  had been leased or sold in the Dallas-Fort Worth area.<\/p>\n<p>Strong demand in  this area is also reflected in the speculative development pipeline,  where 65 per cent of the more than 6 million square feet of office space  under construction has already been pre-leased.<br \/>\n<script type=\"text\/javascript\">\/\/ <![CDATA[\n function facebook1_click(){\n     u= 'https:\/\/offices.net\/news\/wp-content\/uploads\/2015\/05\/Offices.jpg';\n     t=\"Texas CRE: Office Space Trends &#038; Statistics\";\n     window.open('http:\/\/www.facebook.com\/sharer.php?u='+encodeURIComponent(u)+'&#038;t='+encodeURIComponent(t),'sharer','toolbar=0,status=0,width=626,height=436');\n      false;\n   }\n  function twitter1_click() {\n     u= 'https:\/\/offices.net\/news\/wp-content\/uploads\/2015\/05\/Offices.jpg';\n     t= \"Texas CRE: Office Space Trends &#038; Statistics\";\n    window.open('https:\/\/twitter.com\/intent\/tweet?url='+encodeURIComponent(u)+'&#038;text='+encodeURIComponent(t),'sharer','toolbar=0,status=0,width=626,height=436');\n    return false;\n  }\n  function googleplus1_click(){\n     u= 'https:\/\/offices.net\/news\/wp-content\/uploads\/2015\/05\/Offices.jpg';\n     window.open('https:\/\/plus.google.com\/share?url='+encodeURIComponent(u),'sharer','toolbar=0,status=0,width=626,height=436');\n     false;\n  }\n  function linkedin1_click() {\n     u= 'https:\/\/offices.net\/news\/wp-content\/uploads\/2015\/05\/Offices.jpg';\n     t= \"Texas CRE: Office Space Trends &#038; Statistics\";\n     window.open('http:\/\/www.linkedin.com\/shareArticle?mini=true&#038;url='+encodeURIComponent(u)+'&#038;title='+encodeURIComponent(t)+'&#038;summary=&#038;source=','sharer','toolbar=0,status=0,width=626,height=436');\n    return false;\n  }\n\/\/ ]]><\/script><a style=\"float: left; margin-left: 10px; margin-top: 25px; position: absolute;\" onclick=\"return facebook1_click()\" href=\"javascript:void(0)\"><img loading=\"lazy\" decoding=\"async\" style=\"border: none;\" src=\"https:\/\/offices.net\/news\/wp-content\/themes\/officesnews2\/images\/icon1_facebook.png\" border=\"0\" alt=\"\" width=\"28\" height=\"28\" align=\"left\" \/><\/a><a style=\"float: left; margin-left: 45px; margin-top: 25px; position: absolute;\" onclick=\"return twitter1_click()\" href=\"javascript:void(0)\"><img loading=\"lazy\" decoding=\"async\" style=\"border: none;\" src=\"https:\/\/offices.net\/news\/wp-content\/themes\/officesnews2\/images\/icon1_twitter.png\" border=\"0\" alt=\"\" width=\"28\" height=\"28\" align=\"left\" \/><\/a><a style=\"float: left; margin-left: 80px; margin-top: 25px; position: absolute;\" onclick=\"return googleplus1_click()\" href=\"javascript:void(0)\"><img loading=\"lazy\" decoding=\"async\" style=\"border: none;\" src=\"https:\/\/offices.net\/news\/wp-content\/themes\/officesnews2\/images\/icon1_google.png\" border=\"0\" alt=\"\" width=\"28\" height=\"28\" align=\"left\" \/><\/a><a style=\"float: left; margin-left: 115px; margin-top: 25px; position: absolute;\" onclick=\"return linkedin1_click()\" href=\"javascript:void(0)\"><img loading=\"lazy\" decoding=\"async\" style=\"border: none;\" src=\"https:\/\/offices.net\/news\/wp-content\/themes\/officesnews2\/images\/icon1_linkedin.png\" border=\"0\" alt=\"\" width=\"28\" height=\"28\" align=\"left\" \/><\/a><br \/>\n<a href=\"https:\/\/offices.net\/news\/wp-content\/uploads\/2015\/05\/Offices.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-1065\" title=\"Texas CRE: Office Space Trends &amp; Statistics\" usemap=\"#Mp1\" src=\"https:\/\/offices.net\/news\/wp-content\/uploads\/2015\/05\/Offices.jpg\" alt=\"\" width=\"665\" height=\"4227\" srcset=\"https:\/\/offices.net\/news\/wp-content\/uploads\/2015\/05\/Offices.jpg 665w, https:\/\/offices.net\/news\/wp-content\/uploads\/2015\/05\/Offices-47x300.jpg 47w, https:\/\/offices.net\/news\/wp-content\/uploads\/2015\/05\/Offices-161x1024.jpg 161w\" sizes=\"auto, (max-width: 665px) 100vw, 665px\" \/><\/a><\/p>\n<map name=\"Mp1\">\n<area shape=\"rect\" coords=\"389,4074,634,4125\" href=\"https:\/\/offices.net\" target=\"_blank\" \/> <\/map>\n<p><!--more--><\/p>\n<p>In Austin, a bustling service sector has been the driving force behind  declining vacancy rates. Over the past year, these have dropped to a new  low of 8.6 per cent, a figure that represents a significant decrease  over the previous year&#8217;s 11.6 per cent average.<\/p>\n<p>The local market is  characterized by a steady supply of new Class A space, and it is  expected that during 2015 more than 2.3 million square feet will become  available along San Clemente, Capital Ridge, and the Rollingwood Center.<\/p>\n<p>San Antonio is one of the leading real estate markets in the country.  This auspicious state of affairs has been mostly fueled by the rapid  economic growth associated with the expansion of the oil, gas,  manufacturing, and biotech sectors.<\/p>\n<p>Vacancy rates for Class A space have  decreased significantly over the past 12 months, falling to 15.1 per  cent in December 2014. Leasing activity levels reached the 1.6 million  square feet mark in 2014, and they are set to keep increasing this year  as newly developed class A space becomes available in areas to the north  and north west of the city center.<\/p>\n<p>Lastly, Houston&#8217;s resilient economy has been driving strong demand for  office space. At the time of writing, there were more than 10.5 million  square feet of office space under construction in and around the city,  mainly along the Katy Freeway, Richmond, and the <a href=\"https:\/\/offices.net\/tx\/the-woodlands\/\">Woodlands <\/a>\/ Conroe  area. Last year, vacancy rates dropped to 11.9 per cent.<\/p>\n<h2>Office floor space: Rental values by area<\/h2>\n<p>In the Dallas-Fort Worth area average direct asking rents stand at  $21.39 \/ sq ft. Some sub-markets of the Dallas CBD command the  highest rents in the area, averaging $38.17 \/ sq ft in Preston Center,  $36.18 in Turtle Creek and Uptown, and $34.30 in the I-30 Corridor. The  lowest rents concentrate in areas like Northeast Dallas ($16.30 \/ sq ft),  the Stemmons Freeway ($18.51), and Southwest Dallas ($21.70). Rents in  <a href=\"https:\/\/offices.net\/tx\/fort-worth\/\">Fort Worth<\/a> remain stable across all sub-markets and average $29.50 \/ sq  ft.<\/p>\n<p><a href=\"https:\/\/offices.net\/tx\/san-antonio\/\">San Antonio<\/a>&#8216;s limited city center supply has pushed rental values to an  average of $25.38 \/ sq ft. Elsewhere in San Antonio, direct asking rents  have increased by approximately 0.7 per cent and range between $19.62 \/  sq ft and $23.52 \/ sq ft.<\/p>\n<p>Direct gross rental rates in <a href=\"https:\/\/offices.net\/tx\/houston\/\">Houston <\/a>have increased by just over 10 per cent in  the past 12 months and currently stand at an average of $26.30 \/ sq ft  city-wide. Rental values are at their highest in the central business  district, where rates of $44 \/ sq ft are commonplace. The cost of office  space is also above-average in Westheimer \/ Gessner ($41.78 \/ sq ft),  South Main ($41), and the Buffalo Speedway ($40.50). On the lower end of  the scale we find office properties in NASA \/ Clear Lake ($23.23) and  in the eastern suburbs ($24).<\/p>\n<p>In <a href=\"https:\/\/offices.net\/tx\/austin\/\">Austin<\/a>, asking rental rates have remained relatively unchanged over  the past 12 months and currently average $29.17 sq \/ ft. As one would  expect, rental costs are higher for offices in the central business  district, where they average $35.35 \/ sq ft and can be as high as  $43.12. Next are neighborhoods to the south west of the city center  ($32.27 \/ sq ft), where a significant amount of office space is  currently under construction. The lowest rents can be found in Round  Rock ($22.80 \/ sq ft), North Central ($24.11), and the south east  ($25.11).<\/p>\n<h2>Occupiers by industry<\/h2>\n<p><strong>Dallas-Fort Worth<\/strong>: transportation (Southwest Airlines), business and  legal services (Shackelford, Melton, McKinley &amp; Norton, Polsinelli,  Grant Thornton, and Locke Lord) and the energy sector (EnLink  Midstream).<\/p>\n<p><strong>Houston<\/strong>: construction, oil and gas, engineering, and energy.<\/p>\n<p><strong>San Antonio<\/strong>: construction and energy.<\/p>\n<p><strong>Austin<\/strong>: leisure, hospitality, business services, software development, banking, and financial services.<\/p>\n<div><em>Sources:<\/em><br \/>\n<em> http:\/\/www.cushmanwakefield.com\/en\/research-and-insight\/<\/em><br \/>\n<em> http:\/\/www.cushmanwakefield.com\/~\/media\/marketbeat\/2015\/01\/Dallas_Americas_MarketBeat_Office_Q42014.pdf<\/em><br \/>\n<em> http:\/\/www.cushmanwakefield.com\/~\/media\/marketbeat\/2015\/01\/SanAntonio_Americas_Alliance_MarketBeat_Office_Q42014.pdf<\/em><br \/>\n<em> http:\/\/www.wsj.com\/articles\/austin-office-space-more-supply-less-demand-guess-again-1411507470<\/em><br \/>\n<em> http:\/\/www.cushmanwakefield.com\/~\/media\/marketbeat\/2015\/01\/Houston_AMERICAS_MarketBeat_Office_Q42014.pdf<\/em><\/div>\n<p><em><a style=\"height: 20px; width: 40px; position: absolute; opacity: 0.85; z-index: 8675309; display: none; cursor: pointer; border: medium none; background-color: transparent; background-image: url(&quot;data;\" href=\"\/\/www.pinterest.com\/pin\/create\/extension\/\"><\/a><\/em><\/p>\n<p><a style=\"height: 20px; width: 40px; position: absolute; opacity: 0.85; z-index: 8675309; display: none; cursor: pointer; border: medium none; background-color: transparent; background-image: url(&quot;data;\" href=\"\/\/www.pinterest.com\/pin\/create\/extension\/\"><\/a><\/p>\n<p><a style=\"height: 20px; width: 40px; position: absolute; opacity: 0.85; z-index: 8675309; display: none; cursor: pointer; border: medium none; background-color: transparent; background-image: url(&quot;data;\" href=\"\/\/www.pinterest.com\/pin\/create\/extension\/\"><\/a><\/p>\n<p><a style=\"height: 20px; width: 40px; position: absolute; opacity: 0.85; z-index: 8675309; display: none; cursor: pointer; border: medium none; background-color: transparent; background-image: url(&quot;data;\" href=\"\/\/www.pinterest.com\/pin\/create\/extension\/\"><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Overview of the office market in Texas According to a recent Cushman and Wakefield report, the office market in the Lone Star state is robust and has been marked by a consistently high demand for Class A space and an expanding occupier base. This is particularly true of the Dallas-Fort Worth area, where a thriving [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[356,279,344,281,349],"tags":[],"class_list":["post-1054","post","type-post","status-publish","format-standard","hentry","category-cre","category-dallas","category-houston","category-texas","category-trends-and-statistics"],"_links":{"self":[{"href":"https:\/\/offices.net\/news\/wp-json\/wp\/v2\/posts\/1054","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/offices.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/offices.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/offices.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/offices.net\/news\/wp-json\/wp\/v2\/comments?post=1054"}],"version-history":[{"count":22,"href":"https:\/\/offices.net\/news\/wp-json\/wp\/v2\/posts\/1054\/revisions"}],"predecessor-version":[{"id":1376,"href":"https:\/\/offices.net\/news\/wp-json\/wp\/v2\/posts\/1054\/revisions\/1376"}],"wp:attachment":[{"href":"https:\/\/offices.net\/news\/wp-json\/wp\/v2\/media?parent=1054"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/offices.net\/news\/wp-json\/wp\/v2\/categories?post=1054"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/offices.net\/news\/wp-json\/wp\/v2\/tags?post=1054"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}