Shared from the 2017-03-01 The Dallas Morning News eEdition

REAL ESTATE

D-FW tops nation in office leasing

At 5.3 million square feet, region’s demand far outpaced No. 2 L.A.

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The Dallas-Fort Worth area topped the nation in office space demand last year, with companies renting more space in North Texas than anywhere else in the country.

D-FW’s net office leasing totaled nearly 5.3 million square feet. That’s significantly ahead of second-place Los Angeles, which had just over 3.5 million square feet of net leasing, according to a study by commercial real estate firm CBRE.

“With its diverse economy and attractive business environment, D-FW has become a hot spot for large companies,” CBRE research director Robert Kramp said in the report. “In addition, D-FW ranked third for annual rent growth, increasing 18.2 percent.”

Austin ranked eighth in the study with nearly 1.8 million square feet. Houston had the largest supply of sublease office space, thanks to cutbacks in the energy industry, which left more than 11million square feet of surplus offices behind.

D-FW zoomed to the top in office leasing last year, even though total net leasing fell almost 40 percent from 2015 levels. With businesses packing more workers into smaller spaces, many companies that moved in 2016 wound up taking less office space in their new locations. That affected total net leasing numbers.

More than 10 million square feet of office space is under construction in D-FW. About half of that will be completed by the end of the year.

Twitter: @SteveBrownDMN

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