Office Vacancies Dip Lower But Still at 20%

HollyFrontier extended its lease and expanded to another floor in Harwood Four.

DALLAS—Despite the city’s economic growth, equilibrium between supply and demand has kept vacancy levels in the 21% range for the past two years, GlobeSt.com learns. While this vacancy rate is high by the standards of most markets, it is at a level that is generating rent growth. Office rent growth has been robust and rents are projected to reach all-time peaks in 2018, as the availability rate falls below 20%, according to Ten-X.

As vacancies continue to decrease, this is spurring renewals, such as those in the Harwood District. Development firm Harwood International recently announced a lease renewal there with HollyFrontier Corporation. HollyFrontier extended its lease and expanded to another floor in Harwood Four to bring the total world headquarters to 90,000 rentable square feet in the building. HollyFrontier will occupy approximately four floors at 2828 N. Harwood St.