Office
Uptown / Turtle Creek __________________________________ 22 Q2
Key Market Metrics
All Classes
Class A
Class B
95
59
36
15,476,646
13,470,951
2,005,695
Asking Rents (Gross)
$42.72
$44.61
$33.93
Vacancy Rate
18.6%
18.5%
19.4%
187,780
141,545
46,235
Supply YTD #
0
0
0
New Supply YTD (SF)
0
0
0
Under Construction #
3
3
0
833,691
833,691
0
Buildings Market Size
Net Absorption YTD
Under Construction (SF)
Market Indicators Current Quarter to Same Quarter Prior Year
Vacancy Net Absorption YTD New Supply YTD Rental Rate Leasing Activity YTD
Vacancy and Rental Rate Trends Class A 25%
$40
$45
$20
10%
$15 $10
5%
$5
20%
$35 15%
$30 $25
10%
$20 $15
5%
$10
Rental Rate (Gross)
15%
$25
$40
0% 2012
0%
$0 2012
2014 2016 2018 2020 2022
$25
15%
$20 10%
$15 $10
5%
$0
2014 2016 2018 2020 2022
Rental Rate (Gross)
20%
$30
$5
$5
$0
25%
$35 Vacancy Rate
$30
Vacancy Rate
20%
$35
Rental Rate (Gross)
$40 Rental Rate (Gross)
Class B
$50
25%
Vacancy Rate
Class A & B $45
0% 2012 2014 2016 2018 2020 2022
Vacancy Rate
• Overall vacancy stood at 18.6%, up 0.5% from the same quarter in the prior year. • Class A vacancy stood at 18.5%, an increase of 0.8% from four quarters prior, and Class B product had a vacancy rate of 19.4%, down 0.8% from this time last year. • Quoted rental rates for Class A averaged $44.61 gross PSF, which is up 0.2% compared to the rate in the same quarter last year. Class B quoted rental rates averaged $33.93 gross PSF, up 3.0% from prior year.
New Supply - Net Absorption - Vacancy Trends Class A 25%
1,000
250
25%
1,000
10%
0 -200
15%
400 200
10%
0 -200
5%
-400
600
0%
-800
-600
2012 2014 2016 2018 2020 2022
10%
0
5%
-150
0%
Net Absorption
15%
50
-100
2012 2014 2016 2018 2020 2022
New Supply
100
-50
5%
-400
-600
20%
150 SF (000s)
200
20%
800 SF (000s)
15%
400
25%
200 Vacancy Rate
20%
600
Vacancy Rate
800 SF (000s)
Class B
1,200
Vacancy Rate
Class A & B 1,200
0% 2012 2014 2016 2018 2020 2022
Vacancy Rate
• Year-to-date net absorption totaled 187,780 SF, which is up from year-to-date last year. • Class A net absorption totaled 141,545 SF, an increase of 330,938 SF from this time last year. • Class B net absorption stood at 46,235 SF, an increase of 45,740 SF from this time last year. • There were no deliveries in this submarket this quarter. • At the end of the quarter, there were 3 properties under construction totaling 833,691 SF. This is less than the 1,150,982 SF under construction this time prior year. 2022 data as of Q2
Uptown / Turtle Creek Submarket
Building Class Breakdown 13%
Class A Class B 87%
Rent Comparison $50 $40
Average Class B asking rent is a 23.9% discount to Class A
$30 $20 $10 $0 Average Gross Asking Rent
Net Absorption by Class
SF (000's)
150
100
Class A had the greatest amount of absorption with 141,545 SF
50
0 YTD Net Absorption
Total Available Sublease Space for the Past 12 Quarters 600,000
Rental Rate
25%
$50.00
20%
$40.00
15%
$30.00
10%
$20.00
5%
$10.00
0%
$0.00 Total Vacancy Rate
Under Construction 30,667
500,000 13%
400,000 300,000
411,175 Average Gross Rental Rate
200,000
87%
100,000 0 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 2022 Q2 Class A
Class B
Square Feet
Vacancy
Office
Dallas CBD _________________ 22 Q2
Key Market Metrics
All Classes
Class A
Class B
83
36
47
31,310,926
25,131,220
6,179,706
Asking Rents (Gross)
$28.83
$29.72
$23.56
Vacancy Rate
31.6%
33.9%
22.4%
-230,856
-165,330
-65,526
1
1
0
New Supply YTD (SF)
482,416
482,416
0
Under Construction #
0
0
0
Under Construction (SF)
0
0
0
Buildings Market Size
Net Absorption YTD Supply YTD #
Market Indicators Current Quarter to Same Quarter Prior Year
Vacancy Net Absorption YTD New Supply YTD Rental Rate Leasing Activity YTD
Vacancy and Rental Rate Trends Class B
$30
30%
$30
35%
$25
25%
$20
20%
$15
15%
$10
10%
$5
5%
$5
0%
$0
$0 2012
25%
$20
20%
$15
15%
$10
10% 5%
20%
$15
15% $10
10%
$5
5% 0% 2012 2014 2016 2018 2020 2022
2014 2016 2018 2020 2022
Rental Rate (Gross)
25%
$20
$0
0% 2012
2014 2016 2018 2020 2022
Vacancy Rate
30%
$25
30%
$25
Rental Rate (Gross)
40%
Rental Rate (Gross)
$35
Vacancy Rate
Class A 35%
Vacancy Rate
Rental Rate (Gross)
Class A & B $35
Vacancy Rate
• Overall vacancy stood at 31.6%, up 2.6% from the same quarter in the prior year. • Class A vacancy stood at 33.9%, an increase of 3.0% from four quarters prior, and Class B product had a vacancy rate of 22.4%, up 0.6% from this time last year. • Quoted rental rates for Class A averaged $29.72 gross PSF, which is up 4.0% compared to the rate in the same quarter last year. Class B quoted rental rates averaged $23.56 gross PSF, up 11.4% from prior year.
20%
0
15% 10%
-500
5%
-1,000
SF (000s)
500
40%
400
30%
800
35%
300
25%
400
30%
200
200
25%
0
20%
-200
15%
600 Vacancy Rate
25%
Class B
1,000
-400
New Supply
-100
-800
5%
-200
0%
-300
Net Absorption
15%
0
10%
2012 2014 2016 2018 2020 2022
2012 2014 2016 2018 2020 2022
20%
100
-600 -1,000
0%
SF (000s)
30%
1,000 SF (000s)
Class A 35%
Vacancy Rate
Class A & B 1,500
10%
Vacancy Rate
New Supply - Net Absorption - Vacancy Trends
5% 0% 2012 2014 2016 2018 2020 2022
Vacancy Rate
• Year-to-date net absorption totaled -230,856 SF, which is relatively flat from year-to-date last year. • Class A net absorption totaled -165,330 SF, an increase of 208,439 SF from this time last year. • Class B net absorption stood at -65,526 SF, a decrease of 199,847 SF from this time last year. • Deliveries year-to-date totaled 482,416 SF in one property. All of the new supply in this submarket is Class A space. • There were no properties under construction at the end of the quarter.
2022 data as of Q2
Dallas CBD Submarket
Building Class Breakdown 20%
Class A Class B
80%
Rent Comparison $40 $30
Average Class B asking rent is a 20.7% discount to Class A
$20 $10 $0 Average Gross Asking Rent
Net Absorption by Class
SF (000's)
0 -50
Class A had the greatest amount of negative absorption with 165,330 SF
-100 -150 -200 YTD Net Absorption
Total Available Sublease Space for the Past 12 Quarters 2,500,000
Rental Rate
35%
$29.00
30%
$28.80
25%
$28.60
Under Construction 0% 2,000,000
70,089 1,500,000
$28.40
20%
$28.20 15%
$28.00
10%
$27.80
5%
$27.60
0%
1,708,387
1,000,000
$27.40 Total Vacancy Rate
Average Gross Rental Rate
100% 500,000
0 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 2022 Q2 Class A
Class B
Square Feet
Vacancy