Now may be the Time to Snag a Great Deal on Dallas Office Space
By Grace on Sep 28, 2009 in Commercial Real Estate
The word on the street is that Dallas is the place to be for cheap office space.
Although Dallas has always been known for its reasonable office lease prices, with a second wave of foreclosures in the office market imminent, it only makes sense that office space is now more affordable than ever.
There are only a few other cities in the nation with office rent lower office space rent than Dallas, including Pittsburgh, Detroit and Cleveland.
Office space lease prices for the Dallas office space market currently stand at about $21 per square foot, which is a whopping 40 percent less than other, major cities, such as Los Angeles and Washington.
Other, major cities in Texas have also experienced lower office space prices, but no where near what Dallas is offering. Houston office space, for example, is currently priced at around $25 per square foot.
The Vacancy Problem
It pays to mention, however, that the Dallas area also sports one of the highest vacancy rates in the country, trailing only West Palm Beach and northern New Jersey. In fact, vacancy rates in Dallas stand at around 25 percent, thereby making more than a few Dallas office space owners and developers more than a bit nervous.
It is likely because of the poor vacancy rates in Dallas that builders and developers have halted, slowed down or completely put the brakes on new office space construction. As of June, there was less than 2.5 million square feet of new construction in the Dallas area.
Office values for Dallas office space are expected to decrease by another 15 percent over the next, 12 months as a new wave of foreclosures is expected to hit the market.
In other words, if you are looking to lease office space, now may be your time.
