Dallas: Potential Office Overbuilding?
More than half the office space under construction in North Texas is pre-leased. However, a new industry report from Jones Lang LaSalle warned that supply could start exceeding demand. More than 7.6 million square feet is under construction in the Dallas area, with 57.7% of it preleased.
The Dallas metro area is second behind New York City, which has 13.7 million square feet under construction, 46.6% of which is preleased. “Dallas, Houston, and New York are the three markets in which we anticipate supply to exceed demand,” JLL’s director of U.S. office research Julia Georgules said. “With the exception of Houston, the new supply in Dallas and New York would help to temper conditions and balance leverage a little more for tenants.”
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