Confessions of a Recovering Landlord

Class A Office Occupancy at Highest Level since 2006

Life has been hard for landlords in Dallas for a while. Occupancy rates for Class A office buildings just exceeded what they were in 2006. Cause for celebration? That depends on whether they were happy with the occupancy rate in 2006, right? Well, it's now 83.4% according to an analysis by PM Realty Group (PMRG). So 2006 wasn't so great after all.

That's the sad reality of being a landlord in Dallas. Occupancy rates rarely get above 85%. In fact, according to Costar, since 1982 there has only been one period from 1998 - 2001 when overall occupancy in Dallas/Ft. Worth exceed 85%. That's when the tech bubble was big and new construction hadn't really ramped up considerably yet. PMRG's numbers are for class A only while Costar's are for all property classes so it's probably not fair to compare them directly, but it's interesting.

DFW office vacancy seems to run about 4% higher than the country as a whole. But with companies moving to DFW from California and other places, we may see a new era for occupancy rates in DFW. 

To see PMRG's report in the D Real Estate Daily, click here.

 

 

 

_________________________________________________________________________

Bob Gibbons

REATA Commercial Realty, Inc. | 1211 E. 15th Street, Plano, TX  75074

972-468-1946 p | 866-439-8015 f | 972-984-8580 m

bob@texastenantrep.com | www.TexasTenantRep.com

 

 

Comment balloon 0 commentsBob Gibbons • May 22 2014 10:36AM
Class A Office Occupancy at Highest Level since 2006
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