Fort Worth’s office market is still experiencing a flight to quality as companies vie for newer, nicer space. How long it takes for that dynamic to translate into new development remains to be seen.
Quoted face rates are down across DFW, from $31.23-per-square-foot in Q2 this year to $30.97-per-square-foot in Q3. This shouldn’t necessarily be alarming, as newer, Class A space is still performing well, said“It’s a tale of two markets in that sense,” he said. “It’s the Class A products that people are flocking toward, and then it’s the B and C product that people are leaving behind.”
Part of what keeps new construction from kicking off is the rental rate discrepancy between Dallas and Fort Worth. The difference can also be measured in the amount of new space under construction in the two metros. Dallas has about 5,289,000 square feet currently under construction, while Fort Worth has about 386,000 square feet.