DALLAS–The local office market has seen continuing improvementin market fundamentals in the second quarter of 2014. According tothe latest report by Cushman & Wakefieldtenant demand is stronger than it has been since 2006.

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Direct and overall absorption has reached 2million square feet in 2014, this is an increase of 37% compared tothe 1.5 million square feet absorbed during the same time period in2013. Major tenants who took space this year include SantanderConsumer Finance, Perkins Coie, Lockton Companies, Liberty Mutual,Kohl's, Nationstar Mortgage, Conifer Solutions, Ernst & Young,Time Warner Cable, Bell Helicopter and Trend HR.

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To date there has been 8.3 million square feet ofleasing activity, an increase of 9.8%. Class Aspace accounted for more than half of the leased space (57.3%).

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Rental rates have also been rising this year.Asking full-service rental rates rose 3.9% to $21.19 per squarefoot. Class A space saw the greatest increase, 5.4%, rising to$26.22 per square feet.

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During this period 2.5 million square feet ofconstruction projects were completed. Of that, 1.4million square feet were speculative projects. An additional 5.1million square feet of office projects are currently underconstruction, including 12 speculative buildings, which will total2.6 million square feet. Of this spec space, 30.7% has already beenpre-leased. During the third quarter, an additional 2 millionsquare feet of projects will break ground.

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