Company Expansions Boost Office, Stabilize Vacancies

More than 11 million square feet of office space is underway in the metro.

DALLAS—The Metroplex’s diverse economy is boding well for area office assets. Strong absorption is spurring healthy rent gains as companies grow throughout the region. For a second consecutive year, deliveries will reach pre-recession levels, and this influx has been met with a high degree of interest as numerous businesses expand operations and take both new and existing space, according to a second half 2016 office report by Marcus & Millichap. More than 11 million square feet of office space is underway, including a number of large projects that are pre-leased to major companies.

Toyota Motor Corp.’s new 2.1 million-square-foot North American headquarters is currently underway in Plano and Liberty Mutual is building a 1.1 million-square-foot regional hub in the same Legacy West mixed-use development. Strong demand for office space is prompting other large office projects to move forward and the Verizon-backed Hidden Ridge transit-oriented development is awaiting approval. The project would add 3.5 million square feet of office space to the Irving area, attracting numerous companies.