By | Lisa Alther
Being the largest metropolitan area in Texas, Dallas has a booming real estate market. Dallas Fort Worth metro has more than 218 million square feet of office space available on rent. Areas like the CBD office market, Dallas North, Preston Center, Dallas Uptown, Victory Center, West End, and LBJ Freeway have prime properties with excellent location and amenities for office spaces.
If you’re looking for an office space for rent in Dallas, it is essential to find the best rental rates to maximize your investments. Factors affecting the rental rates and vacancies in this area include:
Development of New Spaces
The economy in the Dallas area is growing due to factors like the right to work policy, pleasant weather, no income tax from the state, and a better business environment. It also has a diverse workforce and low cost of housing, leading to more demands for commercial spaces. In Dallas CBD, several acres of land were warehoused for new construction in 2019.
According to a report by CBRE Group, nearly 1.1 million square feet of local office space is already pre-leased before the expected deliveries up to 2022. The pre-lease rate in the area is about 41%, which shows a robust demand from tenants.
Not only the area has mega construction projects coming up, but also the tenants are snapping up these spaces as soon as they are available.
Promising Business Expansion
Due to corporate consolidations and tentative growth of commercial real estate in the Dallas Fort Worth area, the vacancy rates are rising here. The city is growing faster than the whole of Texas, with a huge job market. Therefore, corporate relocations and expansion of local businesses are also increasing in the region, leading to a higher demand for rental spaces.
Availability of Attractive Amenities
Dallas has been a magnet for real estate growth in the commercial segment due to the availability of Class A spaces with excellent amenities. As the demand for talent is high in the area, companies are finding office space for rent in Dallas that comes with superb features to attract their employees.
As a result, landlords are trying to integrate high-tech amenities like Wi-Fi connection and facilities like fitness centers and tenant lounges in their buildings. And easy availability of such amenities in rental offices across Dallas brings more tenants to the region.
Ease of Renting the Space
Dallas offers a pro-business environment with relaxed regulations for securing rental spaces as well. Tenants needn’t go into a bidding war to find an area that’s perfect for them. They can instead negotiate the terms of rent or lease discreetly with the landlords having Class A office spaces.
Variations in Rental Rates
Though the current average rental rates in Dallas Fort Worth is around $24.25 per square foot, the rents are expected to increase every year. The experts anticipate an increase of 5-7% in the rates.
More landlords in Dallas metro are investing in upgrading their buildings with new architecture and attractive amenities for keeping up with the growing rental demands. But, you can still find the best bargains in the region if you use proper rental space referrals and search-related information.
Lisa Alther is the writer and blogger. She is very passionate about her writing. She is a featured blogger at various high authority blogs and magazines in which she shared her research and experience with the vast online community.