Midyear Report Says Dallas CBD Down, But Not Out Despite Negative Absorption Figures

The latest market analysis shows Dallas’ Central Business District has hit its lowest absorption point in two years.

The CBD’s absorption has dipped to -305,052 sf at second quarter’s end after posting a moderate gain in the first quarter, according to a midyear report compiled by Karen M. Ganson, Grubb & Ellis research manager. Hardest hit is class A space with a -512,068 sf quarterly absorption and -814,526 sf for the first six months.

The CBD’s decline is due in part to building renovations and the attraction of new buildings, more space, cheaper rents and high-tech infrastructures in surrounding suburbs, specifically Irving/Las Colinas, Richardson/Plano and Far North Dallas where a combined 3.7 million sf has been absorbed thus far this year. Downtown Dallas has a total inventory of more than 30.9 million sf of existing multi-tenant space, representing 18% of the entire area’s office market, says Ganson.