Higher Rents and Higher Concessions in the LBJ Freeway Submarket
The LBJ Freeway submarket office rents hit bottom in 2012 after a steady decline since 2008. According to CompStak, the submarket turned around between 2012 and 2013 when rates increased 19% and concessions dropped to 15% of deal value. In 2014, LBJ rents continued to trend upwards, but so too have concessions, indicating that the market might be heading towards tenant-favorable conditions.
CBD Office Leases are Two Years Longer Than in Preston Center
According to CompStak, the Dallas CBD has not only shown the greatest rental growth of all central Dallas office submarkets, but also boasts the longest average lease term of 76 months; a full 10 months longer than Uptown Turtle Creek, and 20 months longer than LBJ Freeway and Addison. Interestingly, Preston Center, which has the highest office rents in the area by a wide margin shows the shortest average lease term at 52 months, indicating that landlords may be starting to lose the upper hand.