Optimism still high in DFW office market

Transcription

1 Research & Forecast Report DALLAS-FORT WORTH OFFICE 217 Optimism still high in DFW office market Mike Otillio Director of Research Kari Beets Research Associate The flight to quality continues to be a trend throughout the market. As the U.S. economy continues slow, steady growth tenants are taking advantage of the opportunity to restructure and refresh their space. For some, this means consolidating space in a higherquality building by creating open office concepts or eliminating storage, causing negative market-wide absorption for Class B in the first half of the year. Examples of this include EnLink Midstream, who recently moved from Class B space in Uptown to One Arts Plaza, and Pioneer Natural Resources, who was in Class A space in Williams Tower but was optimistic enough to kick-start its new headquarters in the mixed-use Hidden Ridge development in Las Colinas. Also during this quarter, we saw the fulfillment of Legacy West s vision. Legacy West Urban Village held its grand opening in June with most of its 3, square feet of space leased. For the office market, Toyota moved its first batch of employees into its new campus and will continue moving people in throughout the year. Gaedeke s big bet of speculative space in Far North paid off with the move-in of NTT Data. However, there are still concerns about traffic and lack of public transit options to attract retail workers who cannot afford rising costs in the northern suburbs. A Look Ahead > Rental rates will continue to rise in key submarkets as landlords shift the rent structure to triple net, raising the overall cost to the tenant. While Uptown began this trend, it has rippled into other markets such as Preston Center and Far North and is beginning to catch on in Las Colinas. Expect overall rental rates to rise 5-7% in major submarkets over the next year. > Sky-high land prices in Uptown will discourage future office developers The Union may be the last large office project in the submarket for this cycle. We will continue to see reinvestment in the areas adjacent to Uptown such as the Arts District and. Market Indicators Relative to prior period orption Under Construction Rental *Projected Summary Statistics DFW Office Market DFW Market DFW Class A DFW Class B 15.4% 17.2% 14.7% Change from prior Quarter.2%.1%.2% Absorption (Thousand Square Feet) New Supply (Thousand Square Feet) Under Construction (Thousand Square Feet) Asking Rents Per Square Foot Per Year Annual Change Quarterly Change , Quarterly Forecast* 11,61 1,43 1,18 Average $25.13 $28.99 $21.5 Change from prior Quarter 1.3%.9% 1.7% Year-Over-Year Change 4.9% 3.6% 5.7%

2 Market Highlights > The pace of DFW s job growth slowed slightly, but the metroplex still added 317 jobs per day. Labor force saturation is starting to be a concern with DFW s unemployment rate at 3.8%,.3% below the national average. However, this is not slowing corporate tenants hiring spree. People continue to move to DFW for jobs and companies continue to move for the labor. > The construction pipeline remains split between build-to-suits and spec office space. Spec properties that delivered in 217 were 54% leased at the end of the quarter, and of the 11 million square feet under construction, 65% were leased. The vacancy rate continued its gradual climb. increased slightly from 15.2% in Q1 217 to 15.4% in 217. Class A vacancy increased.1% to 17.2%, and Class B vacancy increased.2% to 14.7%. Far North and the both saw a.6% improvement in overall vacancy rate from Q1 to. New developments continue to see high activity in Far North as new projects saw significant absorption this quarter, including The Star in Frisco (67, ), Legacy West (66, ), and One Legacy West (NTT Data - 6, ). Despite several large move-outs, the still improved its overall vacancy rate largely due to the Aloft hotel taking 1, square feet out of the market in One City Place, the old Radio Shack building. New Supply, Absorption & Thousands of Square Feet 7,5 5, 2,5 Rental s Rental s continue to break records as rates rose to a new overall high of $ This is the first time the DFW market has topped $25 overall. Class A rental rates almost broke a new barrier, reaching $28.99 overall. Las Colinas saw the greatest increase in average asking rates of all the major markets increasing 5% to $ East has also seen a 29% leap in rental rates from the prior year due solely to the start of construction and leasing for The Epic, whose asking rates of $35. triple net seem more in line with Uptown than artsy Deep Ellum. Class A rental rates in Uptown continue to hold steady, increasing only.8% quarter-overquarter and 4.2% year-over-year, a decline from large jumps seen in 215. Absorption & Demand New Supply Absorption Net absorption for 217 was 59,727 square feet, one-third of the prior quarter s absorption level. Year-to-date net absorption stands at 2 million square feet, 8, square feet ahead of this time in 216. With several large properties still expected to deliver by year-end, the market continues to be on track for a record year. Far North saw the highest absorption level, bolstered by Toyota starting its move to its North American Headquarters, occupying 4, square feet of its 2 million square foot campus. Mid-Cities saw the largest negative absorption, as CoreLogic, who moved into its new Hackberry Creek headquarters last quarter, vacated 22, square feet at Solana. While many submarkets showed strong positive absorption in the quarter, Las Colinas, Mid-Cities, and Northeast all had approximately 1, square feet of negative absorption, significantly lowering the market-wide level. 25% 2% 15% 1% 5% % Thousands of Square Feet Job Growth & Unemployment (not seasonly adjusted) Unemployment 5/216 5/217 DFW 3.6% 3.8% Texas 2.2% 4.4% U.S. 4.5% 4.1% Job Growth Annual Change # of Jobs Added DFW 3.3% 115.8k Texas 2.2% 268.1k U.S. 1.6% 2,264k Class A Office Rents & 19% 18% 17% 16% 15% 14% Class A, B & C Office Absorption 4,5 4, 3,5 3, 2,5 2, 1,5 1, Class A Class A Rental Class A Class B Class C $3 $29 $28 $27 $26 $25 $24 $23 $22 $21 $2 2 - Research & Forecast Report 217 Office Colliers International

3 - Downtown & Suburban Office Market Summary EXISTING PROPERTIES VACANCY NET ABSORPTION CONSTRUCTION RENT Submarket Bldgs Inventory Direct Sublease Vacant Current Prior Qtr Current Qtr New Supply Under Construction Average (FS) DOWNTOWN AND SUBURBAN MARKETS Class A Suburban Suburban DFW Market 27 23,159, %.8% 5,932, % 26.% 145, ,634 92, ,4 $ ,984,611.5% 1.1% 8, % 14.6% 61,114 64,918 28,489 $ ,271, % 1.1% 17,921, % 15.5% 395,988 1,749,964 2,465,37 9,43,22 $ ,833, %.9% 814, % 13.4% (167,524) (4,772) 16,182 98,497 $ ,249,5 16.2% 1.% 25,482, % 17.1% 435,74 1,9,744 2,717,789 1,43,48 $28.99 Class B Suburban Suburban DFW Market 37 6,86, %.6% 1,22, % 16.8% (178,5) (72,14) $ ,968, %.3% 341, % 8.6% (2,45) 22,819 $ ,316 4,83, %.5% 17,881, % 14.2% 173,794 (156,599) 662, ,3 $ ,984, %.6% 2,315, % 16.9% 51,752 14,552 44,94 13,962 $21.5 2, ,239,2 14.2%.5% 21,787, % 14.5% 4,434 (186,77) 77,427 1,17,992 $21.5 Class C Suburban Suburban DFW Market 45 3,15,832 1.%.% 315,26 1.% 9.% (31,316) (29,38) $ ,554.2%.% 1,32.2%.6% 2,422 (1,32) $ ,528, %.1% 1,975, % 1.3% 44, , $ ,62, %.% 37, % 7.1% 18,792 73,669 $ ,93 27,947, %.% 2,599, % 9.4% 34,219 24,161 $18.6 All Classes Suburban Suburban DFW Market 19 32,396, %.6% 7,45,38 23.% 22.6% (63,945) 37,186 92, ,4 $ ,618, %.7% 1,155, % 11.5% 61,131 86,417 28,489 $ , ,883, %.7% 37,778, % 14.5% 614,13 1,754,485 3,7,857 1,317,52 $ ,419, %.6% 3,437, % 14.3% (96,98) 47,449 25,2 22,459 $21.7 4, ,435, %.7% 49,869, % 15.2% 59,727 1,93,198 3,425,216 11,61,4 $25.13 QUARTERLY AND ANNUAL HISTORICAL COMPARISONS 217 4, ,435, %.7% 49,869, % 15.2% 59,727 1,93,198 3,425,216 11,61,4 $ Q1 4, ,169, %.7% 49,162, % 15.1% 1,42,471 1,42,471 2,172,854 11,442,359 $ Q4 4,351 32,996, %.6% 48,41, % 15.% 421,7 3,642,71 5,178,27,641,798 $ Q3 4,335 32,1, %.6% 47,955, % 15.2% 2,69,891 3,221,64 4,32,63,449,883 $ ,31 318,546, %.6% 48,45, % 15.2% 777,46 1,151,173 2,727,562,685,317 $ ,242 3,315, %.7% 46,51, % 15.1% 1,85,468 3,969,435 3,882,221 7,515,716 $ ,17 36,613, %.7% 48,264, % 15.7% 88,647 2,672,628 1,954,586 6,76,22 $ ,3 33,192, %.7% 5,192, % 16.4% (43,232) 381, ,651 3,454,56 $ ,92 31,495, %.5% 5,699, % 16.8% 159,86 579, ,55 2,287,839 $ Research & Forecast Report 217 Office Colliers International

4 - Office Submarket Summary EXISTING PROPERTIES VACANCY NET ABSORPTION CONSTRUCTION RENT Colliers Markets Bldgs Inventory Direct Sublease Vacant Current Prior Qtr Current Qtr New Supply Under Construction Average (FS) Class A Central Expressway 22 7,54,442.9%.1% 917,72 13.%.7% (2,95) 32,436 $ ,159, %.8% 5,932, % 26.% 145, ,634 92, ,4 $ East 3 598, %.2% 38,94 6.4% 6.4% 294,82 $ 42.9 Far North ,26, % 1.3% 4,93,863.3% 13.4% 78,498 1,111,972 1,29,265 5,828,589 $ Fort Worth 17 5,984,611.5% 1.1% 8, % 14.6% 61,114 64,918 28,489 $ Las Colinas 81 19,66, % 2.% 2,956, % 14.1% (198,65) 722, ,183 8,219 $ LBJ 37 1,684, % 1.9% 2,637, % 24.4% (25,65) (13,77) $ Lewisville / Denton 6 474, %.%,62 2.7% 3.8% 5,243 $ Mid-Cities 42 8,233, %.2% 1,718, % 15.% (314,396) (337,33) 367, ,84 $ North 3 725, %.% 19,26 2.6% 2.6% 9 5,82 $ Northeast 2 414, %.% 39, % 61.3% (55,637) 28,86 $ Preston Center 22 4,188, %.7% 384, % 8.1% (44,641) (67,716) 171,583 $ North US 75 Corridor 66 14,116, %.3% 3,188, % 23.3% 96,363 (69,258) 473,441 $ South 23 3,692, % 1.2% 485, % 1.1% (111,896) (74,678) 16,182 98,497 $ 3.28 Southwest 3 352,67 3.9%.% 13, % 4.4% 1,836 1,836 $ Stemmons 14 4,797, %.2% 874, % 19.3% 11, ,198 63, $ Uptown / Turtle Creek 46 1,92,985 9.%.9% 1,88,248 1.% 1.8% 85, ,223 2, 1,273,53 $ 4.78 DFW Market ,249,5 16.2% 1.% 25,482, % 17.1% 435,74 1,9,744 2,717,789 1,43,48 $ Class B Central Expressway 85 5,962, %.4% 55, % 9.3% 47,599 (36,97) $ ,86, %.6% 1,22, % 16.8% (178,5) (72,14) $ East 178 6,555,785 8.%.1% 526,57 8.% 8.% (2,928) (91,822) $ Far North 44 21,28, %.6% 3,2,1 15.% 15.% 5,689 (21,878) 13, ,621 $ Fort Worth 42 3,968, %.3% 341, % 8.6% (2,45) 22,819 $ Las Colinas ,446, %.3% 2,691, % 13.2% 47,257 25, ,359 31,413 $ 2.88 LBJ 8 1,954, %.4% 2,195,871 2.% 2.3% 27,138 (27,479) $ Lewisville / Denton 195 8,14,63 8.7% 1.7% 831,51 1.4% 9.6% (53,924) (94,275) 29,4 8,66 $ Mid-Cities ,6, %.3% 2,51, % 14.2% 151,372 87,532 1, 145,649 $ 2.28 North 68 3,23, % 1.8% 214, % 6.9% 8,947 (19,571) 23,94 42, $ 24.8 Northeast 51 3,67, %.5% 1,488, % 47.3% (37,322) (15,31) $ Preston Center , %.3% 92, % 1.1% 5,673 2,669 $ North US 75 Corridor 374 2,169,675.8%.1% 2,69,581.9%.9% 5,18 72,192 18,34 324,439 $ 21.2 South 26 7,686, %.1% 6,71 8.% 9.% 8,7 49,154 21, 61,962 $ Southwest 88 2,995, %.% 352, %.5% 22,722 64,88 55, $ Stemmons 99 7,687, %.8% 2,43, % 26.1% (35,556) (41,568) $ Uptown / Turtle Creek 45 2,548, % 4.9% 378, % 11.1% (95,848) (9,757) 42,248 $ DFW Market 2, ,239,2 14.2%.5% 21,787, % 14.5% 4,434 (186,77) 77,427 1,17,992 $ Research & Forecast Report 217 Office Colliers International

5 - Office Submarket Summary EXISTING PROPERTIES VACANCY NET ABSORPTION CONSTRUCTION RENT Colliers Markets Bldgs Inventory Direct Sublease Vacant Current Prior Qtr Current Qtr New Supply Under Construction Average (FS) Class C Central Expressway ,66 4.3%.1% 4,52 4.4% 5.4% 9,53 24,44 $ ,15,832 1.%.% 315,26 1.% 9.% (31,316) (29,38) $ East 2,674, %.2% 234,46 8.8% 7.2% (42,94) (16,84) $ Far North 46 97, %.% 154, % 13.6% (31,19) (28,93) $ Fort Worth ,554.2%.% 1,32.2%.6% 2,422 (1,32) $ Las Colinas 22 1,28, %.% 75, % 8.2% 24,61 36,11 $ LBJ , %.% 161, % 24.8% (3,43) (3,42) $ Lewisville / Denton 73 1,647,37 3.1%.% 5, % 3.1% 584 1,427 $ Mid-Cities 26 4,842, %.% 563, %.4% 36,719 71,617 $ North ,54 2.1%.% 1, % 1.8% (1,474) 27,384 $ Northeast ,11 9.3%.% 91, % 9.% (2,85) (6,279) $ Preston Center , %.% 2, % 14.9% 35,734 53,18 $ North US 75 Corridor 14 2,475, %.% 17, % 5.8% (27,896) (27,731) $ 2.98 South 145 3,92, %.% 24, % 7.4% 23,116 52,564 $ Southwest 67 1,399,35 3.8%.% 52, % 3.7% (5) 4,792 $ Stemmons 62 1,946, %.% 49, % 23.3% 44,18 39,752 $ Uptown / Turtle Creek , % 1.% 42, % 8.6% (3,15) $ 3. DFW Market 1,93 27,947, %.% 2,599, % 9.4% 34,219 24,161 $ 18.6 All Classes Central Expressway ,933,62 1.3%.2% 1,463, % 1.8% 35,747 2,779 $ ,396, %.6% 7,45,38 23.% 22.6% (63,945) 37,186 92, ,4 $ East 31 9,828,957 8.%.1% 799,7 8.1% 7.7% (45,868) (18,626) 294,82 $ Far North 68 55,447,77.4% 1.% 7,448, % 14.% 683,78 1,62,1 1,393,959 6,15,21 $ 27.9 Fort Worth 8 1,618, %.7% 1,155, % 11.5% 61,131 86,417 28,489 $ Las Colinas ,261, % 1.1% 5,723, % 13.5% (6,747) 783,95 883, ,632 $ LBJ ,274,6 21.3% 1.1% 4,994, % 22.4% (1,87) (43,976) $ Lewisville / Denton 274 1,136, % 1.3% 894, % 8.3% (48,97) (83,848) 29,4 8,66 $ Mid-Cities ,688, %.2% 4,782, % 14.1% (6,35) (177,884) 377, ,489 $ North 99 4,474, % 1.3% 244,95 5.5% 5.6% 7,482 13,633 23,94 42, $ 22. Northeast 91 4,473, %.3% 1,89, % 4.1% (95,89) 6,776 $ 19.2 Preston Center 59 5,542, %.6% 497,433 9.% 8.9% (3,234) (11,867) 171,583 $ North US 75 Corridor ,762, %.2% 5,968, % 16.4% 118,485 (24,797) 18,34 797,88 $ South ,471, %.4% 1,32,218 9.% 8.9% (8,653) 27,4 181,182 16,459 $ 24.3 Southwest 158 4,747, %.% 418, % 9.3% 24,58 7,716 55, $ 18.1 Stemmons ,431, %.5% 3,326, % 23.5% 11,34 111,382 63, $ Uptown / Turtle Creek ,945,26 9.2% 1.7% 1,59,22 1.8% 1.8% (1,66) 161,316 2, 1,315,778 $ DFW Market 4, ,435, %.7% 49,869, % 15.2% 59,727 1,93,198 3,425,216 11,61,4 $ NOTE: Statistical set consists of office properties 1, and up, including owner-occupied properties; and excluding medical office and properties where the government is 1% owner and occupier. While CoStar attempts to provide the most accurate data at the end of every quarter, revisions are made throughout the year accounting for discrepancies in past reporting. Sources: CoStar Property, Colliers Research 5 - Research & Forecast Report 217 Office Colliers International

6 Leasing Activity Leasing activity in 217 was down 25% from the first half of 216. Leasing activity for was approximately 3.9 million square feet, while year-to-date activity is just over 8.3 million square feet. 217 Top Office Lease Transactions BUILDING NAME/ADDRESS SUBMARKET TENANT LEASE DATE 21 Ross Ave 139,71 Baker Botts LLP Apr Ross Ave 115,492 Goldman Sachs Apr Freeport Pky Las Colinas 54,646 Yardi Systems Jun Waterview Pky US 75 Corridor 38,783 University of Texas at Apr Tennyson Pky Far North 35,738 BroadSoft, Inc. May International Pky Far North 33,653 Fisher Asset Jun N Glenville Dr US 75 Corridor 33,465 Service King Collision Repair Centers May N Stemmons Fwy Stemmons 3,73 Safeguard Business Systems May Legacy Dr Far North 25,343 NTT DATA, Inc. May Spectrum Dr Far North 23,427 Principal Financial Services, Inc. May W Las Colinas Blvd Las Colinas 22,542 Lightbeam Health Solutions May E Las Colinas Blvd Las Colinas 22,338 General Motors Financial Company Apr-17 4 International Pky Far North 18,398 Gallagher Apr Legacy Dr Far North 17,315 Spectrum VIOP May Canyon Dr Las Colinas 16,876 MAG Velocity May-17 Sales Activity Investment activity for the first half of 217 was up 74% from the first half of 216. Liberty Mutual s purchase of its Plano campus was one of the largest transactions of the quarter, estimated at around $325 million Legacy Circle in Far North traded near Uptown-level prices at $387 per square foot. 217 Significant Sales Transactions (5, or greater) BUILDING NAME SUBMARKET RBA () CLASS BUYER SELLER DATE SOLD 5851 Legacy Circle Upper Tollway/ West Plano 318,582 A TIER REIT, Inc. VEREIT, Inc. 6/26/17 Northpark Central Central Expressway 491,82 A CBRE Global Investors Cornerstone RE Advisers 6/21/17 Point West I DFW Freeport/Coppell 182,7 B Capital Commercial Investments Gramercy Property Trust 5/31/17 Midtown Office Center East LBJ 8,789 B Olymbec USA Libitzky Property Companies 5/26/ N Greenville Avenue Richardson 19, B Intercontinental Real Estate Corporation Foundry Commercial, CenterSquare 5/25/17 Arbors at Brookhollow Arlington/Mansfield 114,421 B Yacht Harbor Capital Advisors Onward Investors LLC 5/19/17 Pacific Center I & II Quorum/Bent Tree 224,222 A Apex Pacific Partners The Douglas Preston Center 163,864 B Granite Properties KBS Real Estate Investment Trust Transwestern Investment Company 5/18/17 5/2/17 Granite Plaza Office Ctr/West LBJ Extension 195,173 A American Fidelity Property Company Granite Properties 4/27/17 Forest Green Business Park East LBJ 172,62 B Pat Davis Properties Prescott Realty Group 4/3/17 Sources: RCA, Costar, Colliers Research 6 - Research & Forecast Report 217 Office Colliers International

7 Quoted gross rental rates for existing top performing office buildings BUILDING NAME ADDRESS SUBMARKET RBA () +E BUILDINGS YEAR BUILT % LEASED AVAIL. RENT ($/) OWNER KPMG Plaza at Hall Arts 2323 Ross Ave 459, % 113,415 $48. +E 2323 Ross Holdings, LLC 1919 McKinney Ave 1919 McKinney Ave Uptown/Turtle Creek 118, % 4,788 $38. +E Ecom Real Estate Mgmt, Inc. 83 Douglas at Preston Center 83 Douglas Ave Preston Center 1, % 63,492 $35.5 +E Lionstone Investments Chase Tower 22 Ross Ave 1,255, % 344,474 $35. +E Fortis Property Group, LLC Travis Walk 4514 Travis St Preston Center 91, % 17,73 $35. +E Intercity Investment Properties, Inc. 31 Monticello 31 Monticello Ave Preston Center 174, % 33,194 $35. +E NNN BUILDINGS Westdale Real Estate Investment and Management 21 McKinney Ave 21 McKinney Ave Uptown/Turtle Creek 36, % 16,161 $4. NNN NY State Common Retirement Fund 17Seventeen McKinney 1717 McKinney Ave Uptown/Turtle Creek 369, % 41,86 $39. NNN Gaedeke Group LLC The Star 1 Cowboys Way Far North 397, % 81,585 $39. NNN City of Frisco 2 McKinney Ave 2 McKinney Ave Uptown/Turtle Creek 447, % 2,83 $38.5 NNN Union Investment Real Estate GmbH McKinney & Olive 221 McKinney Ave Uptown/Turtle Creek 53, % 35,88 $38.5 NNN Crescent Real Estate Equities LLC Harwood No. 7 Frost Tower 295 N Harwood St Uptown/Turtle Creek 167, % 9,72 $38. NNN Harwood International 217 HIGHLIGHTS TOTAL OFFICE INVENTORY 148.2M 324.4M 148.2M 27.9M TOTAL INVENTORY BY CLASS CLASS A: 46% CLASS B: 46% CLASS C: 8% TOTAL: 11.5M SUBMARKET FAR NORTH DALLAS UPTOWN/TURTLE CREEK LAS COLINAS NORTH US-75 CORRIDOR MID-CITIES 6.M 1.3M 843K 798K 694K UNDER CONSTRUCTION.8% ANNUALLY CURRENT 15.4% 59,727 VACANCY NET ABSORPTION MULTI-TENANT OFFICE BUILDINGS BY SIZE 25K-5K 5K-1K 1K-25K 25K-5K 5K-1M 1 MILLION+ NUMBER OF BUILDINGS TOTAL SQUARE FEET VACANCY M 14.3% M 21.2% M 19.7% M 21.% M 22.8% M 23.9% 7 - Research & Forecast Report 217 Office Colliers International

8 38 OFFICE SUBMARKET MAP LLT NORTHWEST FORT WORTH SOUTHWEST FORT WORTH ALLIANCE / FOSSIL CREEK 14 35W 35W FW 5 35W B W WEST LAKE / GRAPEVINE NORTHEAST FORT WORTH SOUTHEAST FORT WORTH DENTON HURST / EULESS / BEDFORD ARLINGTON 287B LLT 35E LEWISVILLE DFW / FREEPORT COPPELL OFFICE CTR WEST LBJ EXT SOUTH IRVING 48 GRAND PRAIRIE URBAN CENTER WINGREN 33 FRISCO THE COLONY E DNT DNT UPPER TOLLWAY PLANO QUORUM BENT TREE DNT WEST LBJ 4 PRESTON CENTER STEMMONS FREEWAY 16 SOUTHWEST DALLAS 7 DNT UPTOWN / TURTLE CREEK DALLAS 35E EAST LBJ PLANO 19 RICHARDSON CENTRAL EXPWY WHITE ROCK 635 ALLEN / McKINNEY MESQUITE FORNEY TERRELL GARLAND ROCKWALL SOUTHEAST DALLAS Central Expressway 1 North 154 Bldgs 13.9m 1.5% Vac UC = None $ P 99 Bldgs 4.5m 5.5% Vac UC = 42K $ 22. P 2 11 Northeast 19 Bldgs 32.4m 23% Vac UC = 261.4K $ P 91 Bldgs 4.5m 42.3% Vac UC = None $ 19.2 P 3 East Preston Center 31 Bldgs 9.8m 8.1% Vac UC = 294.8K $ P 59 Bldgs 5.5m 9% Vac UC = 171.6K $ P 4 Far North 13 North US 75 Corridor 68 Bldgs 55.4m 13.4% Vac UC = 6,15K $ 27.9 P 544 Bldgs 36.8m 16.2% Vac UC = 798K $ P 5 14 South 8 Bldgs 1.6m 1.9% Vac UC = 28.5K $ P 374 Bldgs 14.5m 9% Vac UC = 16.5K $ 24.3 P 6 Las Colinas 15 Southwest 335 Bldgs 39.3m 14.6% Vac UC = 843.6K $ P 158 Bldgs 4.7m 8.8% Vac UC = 55K $ 18.1 P 7 LBJ 16 Stemmons 196 Bldgs 22.3m 22.4% Vac UC = None $ P 175 Bldgs 14.4m 23.1% Vac UC = None $ P 8 Denton / Lewisville 17 Uptown / Turtle Creek 274 Bldgs 1.1m 8.8% Vac UC = 8.7K $ P 113 Bldgs 13.9m 1.8% Vac UC = 1,316K $ P 9 Mid-Cities Market 716 Bldgs 31.7m 15.1% Vac UC = 694.5K $ P 4,386 Bldgs 324.4m 15.4% Vac UC = 11,61K $ P RESEARCHERS: MIKE OTILLIO Director of Research DIRECT mike.otillio@colliers.com KARI BEETS Research Associate DIRECT kari.beets@colliers.com Copyright Colliers International. The information contained herein has been obtained from sources deemed reliable. While every While every reasonable reasonable effort has effort been has made been to made ensure to ensure its accuracy, its accuracy, we cannot we cannot guarantee guarantee it. No responsibility it. No responsibility is assumed is assumed for any for inaccuracies. any inaccuracies. Readers Readers are encouraged are encouraged to consult to consult their professional their professional advisors advisors prior prior to acting to acting on any on of any the of material the material contained contained this in report. this report. Colliers International Market 1717 Address, McKinney Suite Avenue, # Suite 9, Address, Texas 7522 Suite # colliers.com/<<market>> colliers.com/texas/dallas 8 North American Research & Forecast Report Q4 214 Office Market Outlook Colliers International