Office
Uptown / Turtle Creek _________________________________ 22Q1
Key Market Metrics
All Classes
Class A
Class B
97
56
41
15,829,213
13,645,113
2,184,100
Asking Rents (Gross)
$40.92
$43.44
$32.22
Vacancy Rate
18.7%
18.6%
19.1%
149,463
88,499
149,463
Supply YTD #
0
0
0
New Supply YTD (SF)
0
0
0
Under Construction #
3
3
0
834,076
834,076
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 18.7%, up 1.8% from the same quarter in the prior year. • Class A vacancy stood at 18.6%, an increase of 2.1% from four quarters prior, and Class B product had a vacancy rate of 19.1%, down 0.5% from this time last year. • Quoted rental rates for Class A averaged $43.44 gross PSF, which is down 1.5% compared to rate in the same quarter last year. Class B quoted rental rates averaged $32.22 gross PSF, up 0.3% 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
100
0%
-800
0
10%
-50
5%
-150
-600
2012 2014 2016 2018 2020 2022
15%
50
-100
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
New Supply
Net Absorption
0%
-200
0% 2012 2014 2016 2018 2020 2022
2012 2014 2016 2018 2020 2022
Vacancy Rate
• Year-to-date net absorption totaled 149,463 SF, which is up from year-to-date last year. • Class A net absorption totaled 88,499 SF, an increase of 363,632 SF from this time last year. • Class B net absorption stood at 60,964 SF, an increase of 86,882 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 834,076 SF. This is less than the 1,015,937 SF under construction this time prior year. 2022 data as of Q1
Uptown / Turtle Creek Submarket
Building Class Breakdown 14%
Class A Class B 86%
Rent Comparison $50 $40
Average Class B asking rent is a 25.8% discount to Class A
$30 $20 $10 $0 Average Gross Asking Rent
Net Absorption by Class 100 SF (000's)
80 60
Class A had the greatest amount of absorption with 88,499 SF
40 20 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
500,000 13%
37,071
400,000 300,000
378,406 Average Gross Rental Rate
200,000
87%
100,000 0 2019 Q2 2019 Q3 2019 Q4 2020 Q1 2020 Q2 2020 Q3 2020 Q4 2021 Q1 2021 Q2 2021 Q3 2021 Q4 2022 Q1 Class A
Class B
Square Feet
Vacancy