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.