DALLAS-Just-released office figures from Delta Associates, the research affiliate of Transwestern, bring one phrase to mind: Slowdown. Though absorption was still positive in Q1 2013 at 323,000 square feet, it was nowhere near the 1.7 million of absorption recorded during the last quarter of 2012.
Vacancy rates did decrease slightly to 16.4%, compared to a revised 16.5% from the previous quarter and 17.2% year-over-year. The entire inventory totals approximately 299.3 million square feet.
The report suggests that the overall vacancy rate will continue to decline, and will reach the mid-14% range by early 2015. Though lending requirements for speculative development remains stringent, the report predicts construction to increase within the next year to 18 months as demand for office space continues to increase.
What is also likely to increase are asking rents, though rents showed a downward trend during Q1, due to economic uncertainty. Still the report suggests that asking rents are likely to increase throughout the remainder of 2013.
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