According to the Bureau of Labor Statistics, DFW maintained solid job growth by adding 107,500 non-farm jobs since October 2017, a 3.0% annualized gain.
Net absorption in Q4 2018 surpassed the first three quarters of the year with slightly over 1 million sq. ft., yielding 2 million sq. ft. for the year.
Vacancy remained flat over the quarter despite the positive absorption, due to ±1.6 million sq. ft. of competitive inventory introduced to the DFW market following an investment sale of a former owner/user campus.
The shared workspace concept has picked up even more traction in DFW, with a handful of operators taking occupancy in Q4 2018 and roughly 400,000 sq. ft. of new locations already on deck to open in 2019.
Currently 16 leased projects totaling 3.9 million sq. ft. are in the construction pipeline with a pre-leased rate of 65%.
Overall asking rents dipped slightly from $25.03 per sq. ft. to $24.88 per sq. ft. on a full service gross basis. Class A asking rates, however, increased from $30.72 per sq. ft. to $30.93 per sq. ft.