DALLAS-Collliers International's Knowledge Report, detailing statistics concerning office space in the Dallas-Fort Worth region, reported a decrease in vacancy, an increase in absorption and growing construction during Q3 2013. Specifically, vacancy stood at 15.7% (a drop from the 16.3% reported during Q2 2013); absorption was 2.3 million (bringing the year-to-date total to 3.5 million) and approximately 4.5 million square feet is under construction, compared to the Q2 2013 figure of 2.3 million square feet.
Breaking the statistics down even further, class A space vacancy was 15.9%, class B was 17% and class C at 10.8%. On the absorption side, it was class A space leading the way at more than 1.6 million, while class B absorbed 732,110 square feet in total. Class c space suffered, however, with absorption at -79,252 square feet. The reason for these numbers, the report points out, is due to a continued flight to quality, along with a healthy job market.
Could new product coming online be problematic? The report points out that "preleased space is expected to soften the absorption shock," but also allows that "Class A space, which has had a starring role, could be tested as new projects come into the market."
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