Quarterly deal volume fell for the second quarter in a row, dropping from 3.5 msf (million square feet) to 3.2 msf. Tenants leased just over 14.0 msf in 2018, a sharp increase from the 13.5 msf leased in 2017.
The region’s overall availability rate dipped by 30 basis points, declining to 24.7%. The continued flight to quality pushed the region’s Class A availability rate down by 60 basis points to 24.2%, the second quarter in a row with a decrease of this amount.
LITTLE CHANGE IN RENT
The overall asking rent was essentially unchanged, ending the year at $24.23, but jumped by 2.5% year on year. The average Class A asking rent rose to $26.64 and has jumped by 2.3% year on year.
Office property sales during the first eleven months of 2018 totaled $3.8 billion, a 11% decrease compared to the same period of 2017.
"The Metroplex’s economy and office market seem to show few signs of losing momentum. A steady influx of companies from other markets and strong local growth have kept activity aloft. The housing market is starting to lose traction, though, as supply starts to outstrip demand and the capacity of households to afford down payments and interest."Frank McCafferty, Executive Managing Director