DALLAS—Ed Pachecano, SVP and managing partner at Bradford Commercial Real Estate Services, talked with GlobeSt.comto share his thoughts on the Dallas market—where it sits and where it is headed.
GlobeSt.com: What do you think will be some of the major office trends in 2014?
Ed Pachecano: Trends I see:
- Across the board rental increases in all submarkets.
- Lessening of leasing incentives.
- Fewer early renewals.
GlobeSt.com: How would you say the office market has changed over the last five years?
Pachecano: Five years ago we were in the middle of a generational economic downturn. It’s like night and day compared to five years ago, we’re approaching 2008 levels of activity.
GlobeSt.com: In Houston there is a lot of buzz around the growth of the Energy Corridor and how that is driving office as well as retail and multifamily development—what is creating buzz in the Dallas market place?
Pachecano: The buzz in Dallas is probably around the notable relocations of companies to Dallas. Between the many build-to-suits and traditional large relocations, I feel this can only be viewed as a validation of Dallas as a premier location to do business.
GlobeSt.com: Where does Dallas stand in terms of supply and demand?
Pachecano: Supply is tight in the premier submarkets; I think new construction is keeping pace with demand. People in Dallas learned their lesson about overbuilding.
GlobeSt.com: Is there are particular project that you are watching with a lot of interest?
Pachecano: Not a project per se but I’m watching downtown, due to a large wave of new ownership on various trophy properties. I’m curious if that becomes the tipping point which allows downtown Dallas to join other world class cities’ downtown environments, becoming not just an office park.