Newmark’s latest Dallas Office Market Report indicated annual full-service asking rental rates increased to a historical high of $29.77/SF, a 1.4% increase year over year. Occupancy was slightly negative, pushing overall vacancy rates to remain relatively flat, increasing by 10 basis points quarter over quarter, to 24.7%. Under-construction pipeline continued to remain steady, with 3.3 MSF in progress. Total leasing activity closed the quarter at 3.0 MSF, reflecting slowing leasing activity contributed by smaller deals being done. Leases signed averaged 3,530 SF per deal, decreasing in deal size by 17.5% quarter over quarter and 15.3% year over year.
As for the Dallas Industrial Market, the market realized 1.4 MSF of positive absorption in the first quarter of 2024, resulting in the second-lowest first-quarter net absorption since 2013 and the lowest since 2019. Overall rental rates grew 13.5% year over year to $9.66/SF, reaching a new historical high. The construction pipeline recorded the fifth consecutive double-digit delivery quarter at 15.6 MSF, while the under-construction pipeline dwindled for the fifth consecutive quarter to 28.4 MSF. Following quarterly supply outpacing occupancies for the fifth consecutive quarter, as of the end of the first quarter of 2024, vacancy increased by 320 basis points year over year to 9.6%.
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Robert Khodadadian has long had a simple philosophy about selling real estate. There are approximately a million buildings in the city, and the broker that gets to sell any one among the multitude that will hit the auctioning block at a given moment is, sometimes, simply the person who happens to pitch their services to the right seller.
robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate
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