According to the Bureau of Labor Statistics, DFW maintained robust job growth by adding 125,400 non-farm jobs since July 2018, a 3.4% annualized gain.
Net absorption in Q3 2019 dropped slightly again from last quarter with over 506,000 sq. ft. of space taken up, yielding 2.0 million sq. ft. total so far for the year. This has far surpassed the total in year-to-date absorption this time in 2018.
Vacancy continues to remain flat in Q3 2019 despite the positive absorption, this is due to ±599,098 sq. ft. of competitive inventory introduced to the DFW market and the sheer amount of existing office stock in the Metroplex, and the general tenant appetite for newer cutting-edge office product.
Currently, there are 25 leased projects in the construction pipeline totaling 5.4 million sq. ft. with a pre-leased rate of 22%. With 10 new projects added this quarter, pre-lease rates are low as they are in beginning stages.
Overall asking rents increased from $25.26 per sq. ft. to $25.40 per sq. ft. on a full-service gross basis. Class A asking rates increased from $31.31 per sq. ft. to $31.45 per sq. ft.