DALLAS (Marcus & Millichap) – The Dallas–Fort Worth office market will be hit harder by the recession than any other Texas metro this year because of the Metroplex’s reliance on national consumer spending, according to a second-quarter Office Research Report by Marcus & Millichap.
A large number of retailers headquartered in the area are cutting back on expenses and payrolls, softening demand for support companies.
Also, according to the report:
As import activity cools, employers in the Metroplex’s trade, transportation and utilities segment will continue to cut payrolls, contributing to a reduction of 73,000 positions marketwide this year, or a 2.5 percent loss. Office users are expected to eliminate 48,100 jobs, a 6.3 percent decrease.
The amount of new office space forecast to come online this year has fallen to 2.1 million sf, a 1.2 percent increase to inventory. The Uptown submarket is projected to receive nearly 600,000 sf.
Although the recession in DFW is expected to be brief compared with the rest of the nation, vacancy will continue to climb as companies delay expansion plans. By the end of the year, vacancy is predicted to reach 24.1 percent, a 290 basis point rise.
As demand for office space in the Metroplex recedes, asking rents are projected to finish the year at $19.11 per sf while effective rents retreat to $15.56 per sf, annual declines of 4.2 percent and 5.5 percent, respectively.

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