Real Estate Market Overview 2004
Dallas
Dallas was settled in 1841 as a frontier trading post and today is the eighth largest city in the United States. The Dallas MSA is also the second largest in Texas, with more than three million people living in the area. High-tech companies, manufacturing and service industries have contributed to growth in Dallas, considered the financial hub of the Southwest. The Dallas-Fort Worth International Airport, which encompasses more than 18,000 acres, is the nation's third busiest and a major economic engine for the region. Quick Facts Land Area 6,185.83 square miles Population Density (2000) 568.9 people per square mile Counties Collin, Dallas, Denton, Ellis, Henderson, Hunt, Kaufman, Rockwall
Area Cities and Towns Addison, Allen, Balch Springs, Carrollton, Cedar Hill, Coppell, Dallas, Denton, DeSoto, Duncanville, Ennis, Farmers Branch, Flower Mound, Frisco, Garland, Grand Prairie, Greenville, Highland Village, Irving, Lancaster, Lewisville, McKinney, Mesquite, Plano, Richardson, Rockwall, Rowlett, Terrell, The Colony, Waxahachie, Wylie
Real Estate Center Market Overview 2004 Dallas, Texas
Table of Contents
Demographics ..............................................................................................3 Education .....................................................................................................7 Employment .................................................................................................8 Economy ....................................................................................................13 Infrastructure ..............................................................................................14 Public Facilities ..........................................................................................15 Multifamily ..................................................................................................21 Housing ......................................................................................................26 Retail ..........................................................................................................30 Hotel...........................................................................................................38 Office..........................................................................................................39 Industrial ....................................................................................................58
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Real Estate Center Market Overview 2004 Dallas, Texas
Dallas Market Overview 2004
Demographics
Dallas PMSA Population
Percent Year Population Change 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2,676,248 2,762,244 2,824,970 2,894,661 2,966,689 3,045,449 3,137,816 3,241,746 3,348,159 3,448,112 3,519,176 3,658,119 3,743,254 1.7 3.2 2.3 2.5 2.5 2.7 3.0 3.3 3.3 3.0 2.1 3.9 2.3
Source: U.S. Census Bureau
County Population Growth
County Collin Dallas Denton Ellis Henderson Hunt Kaufman Rockwall 2002 Population 566,798 2,283,953 488,481 120,052 75,797 79,361 77,954 50,858
Source: U.S. Census Bureau
Growth 1990 - 2002 (percent) 115.7 23.3 78.5 41.0 29.5 23.3 49.3 98.6
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Real Estate Center Market Overview 2004 Dallas, Texas
Area Cities With 10,000 or More Residents
City Dallas Plano Garland Irving Grand Prairie (In Dallas Co. only) Mesquite Carrollton Richardson Denton Lewisville McKinney Flower Mound Rowlett Allen DeSoto Duncanville Coppell Frisco Cedar Hill Farmers Branch The Colony Lancaster Greenville University Park Waxahachie Balch Springs Rockwall Ennis Wylie Addison Terrell Highland Village Corinth Athens Seagoville 2000 Population 1,188,580 222,030 215,768 191,615 127,427 99,760 124,523 109,576 91,802 80,537 77,737 54,369 50,702 44,503 43,554 37,646 36,081 35,958 33,714 32,093 27,508 26,531 25,894 23,960 23,324 21,426 19,375 17,976 16,045 15,132 14,166 13,606 12,173 11,325 11,297 10,823
Source: U.S. Census Bureau
Growth 1990-2000 (percent) 18.1 72.8 19.3 23.5 27.9 22.4 32.7 23.0 20.8 67.6 152.1 222.0 91.6 124.8 26.0 3.2 109.8 417.3 58.4 13.4 19.6 16.4 2.4 4.9 17.9 11.1 67.8 12.7 64.2 61.3 7.4 71.6 187.1 3.0 10.7
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Real Estate Center Market Overview 2004 Dallas, Texas
Texas Metropolitan Area Population Change, 1990 - 2002
Metropolitan Area McAllen-Edinburg-Mission Austin-San Marcos Laredo Dallas Brownsville-Harlingen-San Benito Brazoria County Houston Fort Worth-Arlington Texas Bryan-College Station San Antonio Killeen-Temple Galveston-Texas City Tyler Sherman-Denison Amarillo El Paso Waco Victoria Lubbock Longview-Marshall Corpus Christi Texarkana Wichita Falls Odessa-Midland Beaumont-Port Arthur Abilene San Angelo 1990 2002 Percent Population Population Change 383,545 846,227 133,239 2,676,248 260,120 191,707 3,321,911 1,361,034 16,986,335 121,862 1,324,749 255,299 217,396 151,309 95,019 187,514 591,610 189,123 74,361 222,636 193,801 349,894 120,132 130,351 225,545 361,218 119,655 98,458
Source: U.S. Census Bureau
614,474 1,349,291 207,611 3,743,254 353,561 257,256 4,420,081 1,802,465 21,779,893 156,099 1,660,205 319,163 261,219 181,437 113,860 222,915 697,562 217,713 84,932 247,574 212,288 382,188 131,027 138,960 239,981 382,242 125,647 103,018
60.2 59.4 55.8 39.9 35.9 34.2 33.1 32.4 28.2 28.1 25.3 25.0 20.2 19.9 19.8 18.9 17.9 15.1 14.2 11.2 9.5 9.2 9.1 6.6 6.4 5.8 5.0 4.6
Dallas PMSA Projected Population
Texas State Data Center Texas Water Year (Scenario 0.5) Development Board 2005 2010 2015 2020 3,893,012 4,279,543 4,686,018 5,119,694 3,981,204 4,792,403
Sources: Texas State Data Center and Texas Water Development Board
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Real Estate Center Market Overview 2004 Dallas, Texas
Household Composition
Dallas PMSA Texas Average household size (2000) Population younger than 18 (2000, in percent) Population 65 and older (2000, in percent)
Source: U.S. Census Bureau
2.70 28.0 7.7
2.74 28.2 9.9
Distribution by Race and Hispanic or Latino Origin (in percent)
Dallas PMSA 1990 White Black Asian American Indian Other Two or more races* Hispanic (of any race) 69.0 15.3 2.5 0.5 7.7 13.4 2000 67.2 25.1 4.0 0.6 10.7 2.4 23.0 Texas 1990 2000 60.8 11.7 0.3 1.8 0.1 25.3 71.0 11.5 2.7 0.6 11.7 2.5 32.0
* For the 2000 Census, the Census Bureau changed the "race" options, allowing people to report their race as "other" or as two or more races. Source: U.S. Census Bureau
Projected Population Growth, 2000-2020 (in percent)
Source: Texas State Data Center (Scenario 0.5)
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Real Estate Center Market Overview 2004 Dallas, Texas
Dallas Market Overview 2004
Education
Educational Level, Persons Age 25 and Older 2000 (in percent)
Level of Education High school graduate Some college, no degree Associate's degree Bachelor's degree Graduate or professional degree Collin County Dallas County Denton County Texas 16.3 20.1 7.0 31.6 14.8 23.7 20.4 5.1 18.7 8.2 22.3 24.3 7.1 26.0 10.8 26.3 21.7 5.2 16.1 7.4
Source: U.S. Census Bureau, 2000
Educational Level, Persons Age 25 and Older 2000 (in percent)
Level of Education Completed High School Bachelor's Degree or More
Source: U.S. Census Bureau
Dallas PMSA Texas 84.7 33.0 79.2 23.9
Local College and University Enrollment
School Brookhaven College Dallas Baptist University Northwood University Paul Quinn College Southern Methodist University Texas Woman's University U.T. Southwestern Medical Center at Dallas University of Dallas University of North Texas Spring 2002 Fall 2002 Spring 2003 Fall 2003 4,095 7,241 27,398
Sources: Educational institutions
9,184 4,417 681 871 10,955 8,694 1,640 3,159 30,183
4,275 8,344 2,698 3,014 29,373
4,785 614 11,161 9,709 3,400 3,157 31,065
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Real Estate Center Market Overview 2004 Dallas, Texas
Dallas Market Overview 2004
Employment
Top Ten Employers
Employer Texas Instruments Parkland Memorial Hospital Baylor University Medical Center University of Texas SW Med Center Bank of America Compucom Campus City of Dallas Presbyterian Hospital Dallas U.S. Postal Service UPS Sector Electronics Health care Health Care Health care Financial services Communications Government Health care Mail Mail Employees 9,345 7,406 7,400 6,530 6,110 5,300 4,850 4,100 3,930 3,800 (est.)
Source: North Central Texas Council of Govt. June- 2003
Top Ten Private Employers
Employer Texas Instruments Parkland Memorial Hospital Baylor University Medical Center University of Texas SW Med Center Bank of America Compucom Campus Presbyterian Hospital Dallas UPS Medical City Dallas Hospital Vought Sector Electronics Health care Health Care Health care Financial Services Communications Health care Mail Health care Manufacturing
Source: North Central Texas Council of Govt. June- 2003
Employees 9,345 7,406 7,400 6,530 6,110 5,300 4,100 3,800 (est.) 3,600 3,481
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Real Estate Center Market Overview 2004 Dallas, Texas
Employment Growth by Industry - 2003
Dallas MSA Employment growth (percent) Unemployment rate (percent) New jobs Employment growth by sector (percent) Manufacturing Construction Natural Resources and Mining Trade, Transportation and Utilities Information Financial Activities Professional and Business Services Educational and Health Services Leisure and Hospitality Government Total Nonfarm -5.6 -4.6 -8.3 -2.7 -9.5 0.4 -2.3 3.7 0.2 2.7 -1.5 -5.0 -3.0 0.6 -1.8 -5.8 0.9 -1.1 3.3 1.2 1.3 -0.5 -1.5 7.1 Texas -0.5 6.8
-28,300 -49,800
Source: Texas Workforce Commission and U.S. Bureau of Labor Statistics
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Real Estate Center Market Overview 2004 Dallas, Texas
Texas Metropolitan Area Employment Change, 1990 - 2003
Metropolitan Area Austin-San Marcos Laredo McAllen-Edinburg-Mission Brownsville-Harlingen-San Benito Bryan-College Station San Antonio Killeen-Temple Tyler Dallas Texas Fort Worth-Arlington Houston Victoria Amarillo El Paso Lubbock Waco Longview-Marshall Odessa-Midland Corpus Christi San Angelo Brazoria County Abilene Sherman-Denison Wichita Falls Galveston-Texas City Texarkana Beaumont-Port Arthur 1990 2003 Percent Employment Employment Change 454,618 48,766 128,560 90,866 58,292 587,550 87,724 70,970 1,467,668 8,071,312 721,875 1,720,152 34,648 92,967 229,358 107,823 86,347 86,048 104,401 150,142 43,587 93,552 52,389 43,804 56,897 105,423 51,575 157,435 746,750 77,065 197,870 131,457 82,368 796,235 117,801 93,561 1,916,607 10,284,203 915,919 2,180,719 43,652 113,051 274,926 128,854 102,310 100,952 120,374 172,705 49,798 105,320 58,513 48,866 62,812 114,327 55,658 167,915 64.3 58.0 53.9 44.7 41.3 35.5 34.3 31.8 30.6 27.4 26.9 26.8 26.0 21.6 19.9 19.5 18.5 17.3 15.3 15.0 14.2 12.6 11.7 11.6 10.4 8.4 7.9 6.7
Source: U.S. Bureau of Labor Statistics and The Real Estate Center
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Real Estate Center Market Overview 2004 Dallas, Texas
Dallas MSA Employment
Year Employment 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 1,467,668 1,467,825 1,482,432 1,516,950 1,582,085 1,630,060 1,673,938 1,741,687 1,805,105 1,856,021 1,915,654 1,927,577 1,893,353 1,916,607 % Change Year Ago 0.0 1.0 2.3 4.3 3.0 2.7 4.0 3.6 2.8 3.2 0.6 -1.8 1.2
Source: U.S. Bureau of Labor Statistics
Annual Percent Change in Dallas MSA Employment
Source: U.S. Bureau of Labor Statistics
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Real Estate Center Market Overview 2004 Dallas, Texas
Dallas MSA Unemployment Rate (in percent)
Source: U.S. Bureau of Labor Statistics
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Real Estate Center Market Overview 2004 Dallas, Texas
Dallas Market Overview 2004
Economy
Dallas MSA Gross Retail Sales
Year Total Sales Sales per Capita $9,825 9,999 10,611 11,297 12,336 13,099 13,941 14,218 15,211 15,919 16,374 15,450 15,022
1990 $26,294,722,824 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 27,618,907,640 29,976,756,157 32,701,804,859 36,597,871,971 39,890,844,034 43,744,749,615 46,089,584,160 50,927,175,027 54,891,746,891 57,623,844,071 56,519,747,473 56,230,606,338
State Average 2002: $12,143
Source: Texas Comptroller's Office
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Real Estate Center Market Overview 2004 Dallas, Texas
Dallas Market Overview 2004
Infrastructure
Dallas Airline Activity
Airport Dallas Love Field Enplaned Deplaned 3,359,517 3,356,079 3,409,920 3,410,947 3,542,123 3,535,426 3,350,234 3,335,384 2,811,471 2,811,283 2,795,554 2,793,376 1998 1999 2000 2001 2002 2003
Dallas/Fort Worth International Total enplaned and deplaned 60,313,000 60,000,127 60,771,052 55,151,223 52,829,750 53,253,607
Source: Dallas-Fort Worth International (Feb-2004) and Dallas Love Field
D/FW Cargo Enplaned and Deplaned (in metric tons)
Airport 1998 1999 2000 2001 2002 2003 Dallas-Fort Worth International 884,198 915,814 997,788 864,482 737,791 736,023
Source: Dallas-Fort Worth International Airport
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Real Estate Center Market Overview 2004 Dallas, Texas
Dallas Market Overview 2004
Public Facilities
Allen City Public Facilities Building Permits
Allen City Building Permit Office
Carrollton City Public Facilities Building Permits
Carrollton City Building Permit Office
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Real Estate Center Market Overview 2004 Dallas, Texas
Cedar Hill City Public Facilities Building Permits
Cedar Hill City Building Permit Office
Dallas City Public Facilities Building Permits
Dallas City Building Permit Office
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Real Estate Center Market Overview 2004 Dallas, Texas
Farmers Branch City Public Facilities Building Permits
Farmers Branch City Building Permit Office
Flower Mound City Public Facilities Building Permits
Flower Mound City Building Permit Office
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Real Estate Center Market Overview 2004 Dallas, Texas
Frisco City Public Facilities Building Permits
Frisco City Building Permit Office
Grand Prairie City Public Facilities Building Permits
Grand Prairie City Building Permit Office
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Real Estate Center Market Overview 2004 Dallas, Texas
Lewisville City Public Facilities Building Permits
Lewisville City Building Permit Office
Mesquite City Public Facilities Building Permits
Mesquite City Building Permit Office
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Real Estate Center Market Overview 2004 Dallas, Texas
Richardson City Public Facilities Building Permits
Richardson City Building Permit Office
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Real Estate Center Market Overview 2004 Dallas, Texas
Dallas Market Overview 2004
Multifamily
Dallas Apartment Statistics 2003
Dallas Average rent per square foot Average rent for units built since 2000 Average occupancy (percent) Average occupancy for units built since 2000 (percent)
Source: Apartment MarketData Research
Texas Metro Average $0.79 $0.91 92.1 90.8
$0.86 $0.96 91.2 88.0
Dallas MSA Multifamily Building Permits (5+ Family Bldg. Permits in units)
Source: U.S. Census Bureau
Allen City Multifamily Building Permits
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Real Estate Center Market Overview 2004 Dallas, Texas
Allen City Building Permit Office
Carrollton City Multifamily Building Permits
Carrollton City Building Permit Office
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Real Estate Center Market Overview 2004 Dallas, Texas
Cedar Hill City Multifamily Building Permits
Cedar Hill City Building Permit Office
Dallas City Multifamily Building Permits
Dallas City Building Permit Office
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Real Estate Center Market Overview 2004 Dallas, Texas
Grand Prairie City Multifamily Building Permits
Grand Prairie City Building Permit Office
Lewisville City Multifamily Building Permits
Lewisville City Building Permit Office
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Real Estate Center Market Overview 2004 Dallas, Texas
Mesquite City Multifamily Building Permits
Mesquite City Building Permit Office
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Real Estate Center Market Overview 2004 Dallas, Texas
Dallas Market Overview 2004
Housing
Housing Affordability - Fourth Quarter 2003
Percent of Households THAI for That Can Afford First-time Median-priced Home THAI* Homebuyers Collin County Dallas Denton County Irving Texas MLS Total U.S. Total 69 56 66 62 54 55 1.38 1.09 1.31 1.19 1.06 1.06 1.16 1.05 1.10 1.36 0.92 0.77
* The THAI is the ratio of median household income to the income required to buy the median priced home using currently available mortgage financing. Standard financing is a 30-year loan covering 80 percent of the cost of the home. A THAI of 1.00 indicates that the median household income is just enough to qualify for a loan sufficient to purchase the median-priced home. Source: Real Estate Center at Texas A&M University
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Real Estate Center Market Overview 2004 Dallas, Texas
Price Distribution of MLS Homes Sold, Dallas Area, 2003 (in percent)
Price Range $29,999 or less 30,000 - 39,999 40,000 - 49,999 50,000 - 59,999 60,000 - 69,999 70,000 - 79,999 80,000 - 89,999 90,000 - 99,999 100,000 - 119,999 120,000 - 139,999 140,000 - 159,999 160,000 - 179,999 180,000 - 199,999 200,000 - 249,999 250,000 - 299,999 300,000 - 399,999 400,000 - 499,999 500,000 and more Dallas Denton Irving 1.2 1.1 1.3 1.8 2.2 3.2 4.3 5.2 12.1 12.8 11.0 9.5 6.3 10.1 6.2 5.8 2.3 3.4 0.2 0.2 0.5 0.6 0.7 1.7 2.4 4.1 13.2 16.2 14.8 11.2 7.2 11.4 6.7 5.3 2.0 1.6 0.0 0.5 0.4 1.7 3.5 2.7 7.5 9.6 26.6 15.1 7.3 5.5 2.3 4.3 4.2 5.3 1.8 1.8
Source: Real Estate Center at Texas A&M University
Existing Home Sales, Dallas Area, Q2-Q3 2003
County Collin Dallas Denton Ellis Henderson Hunt Kaufman Rockwall Total Sales Q2 Total Sales Q3 3,006 5,884 2,380 295 39 119 187 276 3,205 6,029 2,558 337 49 135 254 331 Average Sales Average Sales Days on Days on Price Q2 Price Q3 Market Q2 Market Q3 $217,200 188,400 192,300 138,100 91,900 101,300 136,800 204,200 $216,400 195,700 196,800 139,400 160,000 106,700 138,200 212,400 66 62 65 100 120 93 77 88 65 61 66 89 123 98 86 84
Source: North Texas Real Estate Information System
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Real Estate Center Market Overview 2004 Dallas, Texas
Property Tax Rates, 2003
Tax Rate per $100 Valuation 0.70 1.64 0.08 0.25 0.20 2.87
Source: Dallas County Appraisal District
Taxing Entity City of Dallas Dallas ISD Dallas County Community College Parkland Hospital Dallas County Total
Dallas MSA Single-family Building Permits (in units)
Source: U.S. Census Bureau
Average Sales Price of Single-family Home, Dallas Area
Source: Real Estate Center at Texas A&M University
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Real Estate Center Market Overview 2004 Dallas, Texas
Single-Family Home Sales Volume, Dallas Area 2003 (Number of Units)
Source: Real Estate Center at Texas A&M University
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Real Estate Center Market Overview 2004 Dallas, Texas
Dallas Market Overview 2004
Retail
Retail Construction Statistics, Year-End 2003
Statistics Total Gross Leasable Area (square feet) Overall Occupancy (percent) Total Absorption (square feet) New Construction in 2003 (square feet) Average Annual Rental Rate (per square foot) Amount 101,438,737 89.68 1,562,902 2,045,329 $13.61
Average Annual Rental Rate Range (per square foot) $11.86 - $15.36
Source: The Weitzman Group-Cencor Realty Services
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Real Estate Center Market Overview 2004 Dallas, Texas
Allen City Retail Building Permits
Allen City Building Permit Office
Carrollton City Retail Building Permits
Carrollton City Building Permit Office
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Real Estate Center Market Overview 2004 Dallas, Texas
Cedar Hill City Retail Building Permits
Cedar Hill City Building Permit Office
Dallas City Retail Building Permits
Dallas City Building Permit Office
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Real Estate Center Market Overview 2004 Dallas, Texas
DeSoto City Retail Building Permits
DeSoto City Building Permit Office
Duncanville City Retail Building Permits
Duncanville City Building Permit Office
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Real Estate Center Market Overview 2004 Dallas, Texas
Flower Mound City Retail Building Permits
Flower Mound City Building Permit Office
Frisco City Retail Building Permits
Frisco City Building Permit Office
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Real Estate Center Market Overview 2004 Dallas, Texas
Grand Prairie City Retail Building Permits
Grand Prairie City Building Permit Office
Greenville City Retail Building Permits
Greenville City Building Permit Office
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Real Estate Center Market Overview 2004 Dallas, Texas
Lewisville City Retail Building Permits
Lewisville City Building Permit Office
Mesquite City Retail Building Permits
Mesquite City Building Permit Office
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Real Estate Center Market Overview 2004 Dallas, Texas
Richardson City Retail Building Permits
Richardson City Building Permit Office
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Real Estate Center Market Overview 2004 Dallas, Texas
Dallas Market Overview 2004
Hotel
Hotel* Occupancy and Rental Rates
Dallas PMSA 2000 Rooms (000) Average daily rental rate Occupancy rate (percent) 2001 Rooms (000) Average daily rental rate Occupancy rate (percent) 2002 Rooms (000) Average daily rental rate Occupancy rate (percent) 2003 Rooms (000) Average daily rental rate Occupancy rate (percent) 66.4 320.8 65.6 314.3 64.5 307.1 61.7 296.8 Texas
$81.69 $71.56 62.4 59.3
$77.94 $70.27 55.5 57.3
$76.44 $70.11 52.5 55.4
$73.48 $68.78 52.0 54.3
Source: Office of the Governor Economic Development and Tourism and Source Strategies, Inc. of San Antonio *Only properties exceeding $16,600 in the current quarter are included; those units below $16,600 only result in 1.5% of the total state revenues, and have been excluded from this database.
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Real Estate Center Market Overview 2004 Dallas, Texas
Dallas Market Overview 2004
Office
Summary of Office Market Indicators - All Space Year-End 2003
Total Total Rentable SF Total Vacant Bldgs All Bldgs1 SF All Bldgs 122 87 39 97 51 129 25 59 96 66 53 70 14 24 93 76 146 193 123 37 13 16 50 28 1,707 38,146,540 10,413,353 1,713,491 13,360,970 4,462,537 13,107,721 1,740,544 9,450,859 13,626,381 7,163,266 4,763,204 4,089,014 1,365,297 1,411,626 13,309,326 5,069,419 13,618,512 20,488,823 18,368,873 1,825,513 549,380 538,972 2,640,076 3,190,117 204,413,814 10,223,273 1,791,097 301,574 2,445,058 441,791 2,752,621 228,011 2,991,042 2,707,608 1,554,429 1,592,178 1,664,229 349,558 158,926 1,349,180 1,003,745 4,017,461 4,405,097 5,762,744 156,994 49,994 53,471 366,971 499,029 46,866,081
Submarket Dallas CBD Uptown / Turtle Creek White Rock Central Expressway Preston Center Stemmons Freeway South Irving Las Colinas / Urban Center Office Center / LBJ Extension DFW Freeport / Coppell West LBJ Freeway Denton / Lewisville Frisco / The Colony Allen / McKinney Upper Tollway / West Plano Plano Richardson North Dallas Tollway East LBJ Freeway Garland Southeast Dallas Mesquite / Rockwall Southwest Dallas Grand Prairie Total - Dallas
Source: Delta Associates 1 Includes buildings 15,000 SF Rentable (RBA) and greater. Does not include buildings under construction or buildings owned by the government. 2 Net change in physical occupancy for direct and sublet space combined.
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Real Estate Center Market Overview 2004 Dallas, Texas
Summary of Office Market Indicators - All Space Year-End 2003
Total Rentable SF Total Bldgs All Bldgs1 122 87 39 97 51 129 25 59 96 66 53 70 14 24 93 76 146 193 123 37 13 16 50 28 1,707 Total Vacant SF All Bldgs
Submarket Dallas CBD Uptown / Turtle Creek White Rock Central Expressway Preston Center Stemmons Freeway South Irving Las Colinas / Urban Center Office Center / LBJ Extension DFW Freeport / Coppell West LBJ Freeway Denton / Lewisville Frisco / The Colony Allen / McKinney Upper Tollway / West Plano Plano Richardson North Dallas Tollway East LBJ Freeway Garland Southeast Dallas Mesquite / Rockwall Southwest Dallas Grand Prairie Total - Dallas
38,146,540 10,223,273 10,413,353 1,713,491 13,360,970 4,462,537 13,107,721 1,740,544 9,450,859 13,626,381 7,163,266 4,763,204 4,089,014 1,365,297 1,411,626 13,309,326 5,069,419 13,618,512 20,488,823 18,368,873 1,825,513 549,380 538,972 2,640,076 3,190,117 1,791,097 301,574 2,445,058 441,791 2,752,621 228,011 2,991,042 2,707,608 1,554,429 1,592,178 1,664,229 349,558 158,926 1,349,180 1,003,745 4,017,461 4,405,097 5,762,744 156,994 49,994 53,471 366,971 499,029
204,413,814 46,866,081
Source: Delta Associates 1 Includes buildings 15,000 SF Rentable (RBA) and greater. Does not include buildings under construction or buildings owned by the government. 2 Net change in physical occupancy for direct and sublet space combined.
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Real Estate Center Market Overview 2004 Dallas, Texas
Summary of Office Market Indicators - All Space Year-End 2003
Direct Vacancy Vacancy Rate SF Under Rate w/ Sublet Constr. or Net Absorption (percent) (percent) Renovation (SF)2 25.7 15.9 17.6 17.8 9.2 19.3 12.1 25.6 14.9 18.7 32.4 40.3 25.0 11.0 8.0 18.8 22.5 19.8 29.5 6.6 9.1 9.0 13.9 15.5 20.8 26.8 17.2 17.6 18.3 9.9 21.0 13.1 31.6 19.9 21.7 33.4 40.7 25.6 11.3 10.1 19.8 29.5 21.5 31.4 8.6 9.1 9.9 13.9 15.6 22.9 92,060 52,000 88,337 222,820 35,000 538,300 15,000 17,200 400,000 1,460,717 (232,000) (221,000) 8,000 (349,000) 32,000 (212,000) 94,000 (202,000) (50,000) 333,000 (210,000) 235,000 307,000 (81,000) 997,000 18,000 (357,000) (219,000) (73,000) 138,000 (10,000) 5,000 (45,000) (223,000) (317,000)
Submarket Dallas CBD Uptown / Turtle Creek White Rock Central Expressway Preston Center Stemmons Freeway South Irving Las Colinas / Urban Center Office Center / LBJ Extension DFW Freeport / Coppell West LBJ Freeway Denton / Lewisville Frisco / The Colony Allen / McKinney Upper Tollway / West Plano Plano Richardson North Dallas Tollway East LBJ Freeway Garland Southeast Dallas Mesquite / Rockwall Southwest Dallas Grand Prairie Total - Dallas
Source: Delta Associates 1 Includes buildings 15,000 SF Rentable (RBA) and greater. Does not include buildings under construction or buildings owned by the government. 2 Net change in physical occupancy for direct and sublet space combined.
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Real Estate Center Market Overview 2004 Dallas, Texas
Summary of Office Market Indicators - All Space Year-End 2003
Direct Vacancy Vacancy Rate SF Under w/ Sublet Constr. or Net Absorption Rate (percent) (percent) Renovation (SF)2 25.7 15.9 17.6 17.8 9.2 19.3 12.1 25.6 14.9 18.7 32.4 40.3 25.0 11.0 8.0 18.8 22.5 19.8 29.5 6.6 9.1 9.0 13.9 15.5 20.8 26.8 17.2 17.6 18.3 9.9 21.0 13.1 31.6 19.9 21.7 33.4 40.7 25.6 11.3 10.1 19.8 29.5 21.5 31.4 8.6 9.1 9.9 13.9 15.6 22.9 92,060 52,000 88,337 222,820 35,000 538,300 15,000 17,200 400,000 1,460,717 (232,000) (221,000) 8,000 (349,000) 32,000 (212,000) 94,000 (202,000) (50,000) 333,000 (210,000) 235,000 307,000 (81,000) 997,000 18,000 (357,000) (219,000) (73,000) 138,000 (10,000) 5,000 (45,000) (223,000) (317,000)
Submarket Dallas CBD Uptown / Turtle Creek White Rock Central Expressway Preston Center Stemmons Freeway South Irving Las Colinas / Urban Center Office Center / LBJ Extension DFW Freeport / Coppell West LBJ Freeway Denton / Lewisville Frisco / The Colony Allen / McKinney Upper Tollway / West Plano Plano Richardson North Dallas Tollway East LBJ Freeway Garland Southeast Dallas Mesquite / Rockwall Southwest Dallas Grand Prairie Total - Dallas
Source: Delta Associates 1 Includes buildings 15,000 SF Rentable (RBA) and greater. Does not include buildings under construction or buildings owned by the government. 2 Net change in physical occupancy for direct and sublet space combined.
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Real Estate Center Market Overview 2004 Dallas, Texas
Summary of Office Market Indicators - Class Space A1 Year-End 2003
Total Total Rentable SF Bldgs All Bldgs1 21 29 1 19 16 7 2 23 29 8 5 0 8 2 30 4 27 39 21 1 0 1 0 6 299 20,574,657 6,963,603 84,000 6,525,640 2,900,938 2,906,026 227,899 6,400,725 7,558,007 1,717,388 1,265,910 927,767 276,400 8,422,968 701,827 5,220,548 10,097,421 7,752,100 99,970 91,207 1,709,121 Total Vacant SF All Bldgs 3,682,864 1,267,376 27,048 1,174,615 278,490 650,950 84,778 2,509,084 1,171,491 348,630 387,368 269,052 110,836 606,454 242,832 1,722,781 2,271,920 3,108,592 2,699 12,587 97,420 Direct Vacancy Rate2 (in percent) 16.4 16.7 32.2 17.3 8.6 20.4 29.5 31.3 8.2 18.4 27.2 N/A 28.6 40.1 5.6 29.4 22.0 20.3 37.5 2.7 N/A 13.8 N/A 5.7 18.6
Submarket Dallas CBD Uptown / Turtle Creek White Rock Central Expressway Preston Center Stemmons Freeway South Irving Las Colinas / Urban Center Office Center / LBJ Extension DFW Freeport / Coppell West LBJ Freeway Denton / Lewisville Frisco / The Colony Allen / McKinney Upper Tollway / West Plano Plano Richardson North Dallas Tollway East LBJ Freeway Garland Southeast Dallas Mesquite / Rockwall Southwest Dallas Grand Prairie Total - Dallas
92,424,122 20,027,867
Source: Delta Associates 1 Class A per CoStar and greater than 50,000 SF. Does not include buildings under construction or buildings owned by the government. 2 Net change in physical occupancy for direct and sublet space combined.
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Real Estate Center Market Overview 2004 Dallas, Texas
Summary of Office Market Indicators - Class Space A1 Year-End 2003
Vacancy Rate SF Under Net Constr. or Absorption w/Sublet (percent) Renovation3 (SF)2 17.9 18.2 32.2 18.0 9.6 22.4 37.2 39.2 15.5% 20.3 30.6 N/A 29.0 40.1 7.2 34.6 33.0 22.5 40.1 2.7 N/A 13.8 N/A 5.7 21.7 181,010 345,000 400,000 926,010 (19,000) (127,000) 0 (32,000) 21,000 (140,000) (6,000) (298,000) (51,000) 310,000 10,000 0 179,000 (111,000) 281,000 8,000 (242,000) 74,000 (7,000) 0 N/A 1,000 N/A 92,000 (57,000)
Submarket Dallas CBD Uptown / Turtle Creek White Rock Central Expressway Preston Center Stemmons Freeway South Irving Las Colinas / Urban Center Office Center / LBJ Extension DFW Freeport / Coppell West LBJ Freeway Denton / Lewisville Frisco / The Colony Allen / McKinney Upper Tollway / West Plano Plano Richardson North Dallas Tollway East LBJ Freeway Garland Southeast Dallas Mesquite / Rockwall Southwest Dallas Grand Prairie Total - Dallas
Source: Delta Associates 1 Class A per CoStar and greater than 50,000 SF. Does not include buildings under construction or buildings owned by the government. 2 Net change in physical occupancy for direct and sublet space combined.
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Real Estate Center Market Overview 2004 Dallas, Texas
Summary of Office Market Indicators - Class Space B1 Year-End 2003
Total Rentable SF Total Bldgs All Bldgs1 27 40 27 62 22 77 10 31 59 55 31 56 6 17 63 61 93 133 95 21 8 11 30 14 1,049 8,704,466 2,673,500 1,212,864 5,966,585 1,255,855 8,116,469 1,086,525 2,778,174 5,579,977 5,321,463 2,929,540 3,474,647 437,530 1,034,251 4,886,358 4,036,756 7,265,487 9,869,388 10,328,348 1,133,759 361,516 351,965 2,237,266 1,240,924 Total Vacant SF All Bldgs 2,637,453 379,637 194,058 1,109,785 146,935 1,745,041 85,835 463,955 1,473,114 1,181,365 1,072,212 1,598,338 80,506 35,165 742,726 706,432 2,099,726 2,042,963 2,644,057 99,771 21,329 11,474 243,862 380,964
Submarket Dallas CBD Uptown / Turtle Creek White Rock Central Expressway Preston Center Stemmons Freeway South Irving Las Colinas / Urban Center Office Center / LBJ Extension DFW Freeport / Coppell West LBJ Freeway Denton / Lewisville Frisco / The Colony Allen / McKinney Upper Tollway / West Plano Plano Richardson North Dallas Tollway East LBJ Freeway Garland Southeast Dallas Mesquite / Rockwall Southwest Dallas Grand Prairie Total - Dallas
92,283,613 21,196,703
Source: Delta Associates 1 Class B per CoStar and greater than 50,000 SF. Does not include buildings under construction or buildings owned by the government. 2 Does not include sublet space.
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Real Estate Center Market Overview 2004 Dallas, Texas
Summary of Office Market Indicators - Class Space B1 Year-End 2003
Direct Vacancy Vacancy Rate SF Rate w/ Sublet Under Constr. Net Absorption (percent) (percent) or Renovation3 (SF)2 29.9 13.2 16.0 18.3 11.7 20.3 7.9 14.4 24.2 18.8 36.4 45.6 17.5 3.0 12.2 17.4 24.1 19.6 24.3 5.8 5.9 3.3 10.9 30.7 21.5 30.3 14.2 16.0 18.6 11.7 21.5 7.9 16.7 26.4 22.2 36.6 46.0 18.4 3.4 15.2 17.5 28.9 20.7 25.6 8.8 5.9 3.3 10.9 30.7 23.0 92,060 52,000 88,337 41,810 35,000 193,300 15,000 17,200 534,707 42,000 (16,000) 25,000 (151,000) 21,000 64,000 94,000 93,000 8,000 (40,000) (196,000) 52,000 128,000 2,000 716,000 21,000 (73,000) (247,000) (307,000) (11,000) (15,000) (3,000) (64,000) (335,000) (192,000)
Submarket Dallas CBD Uptown / Turtle Creek White Rock Central Expressway Preston Center Stemmons Freeway South Irving Las Colinas / Urban Center Office Center / LBJ Extension DFW Freeport / Coppell West LBJ Freeway Denton / Lewisville Frisco / The Colony Allen / McKinney Upper Tollway / West Plano Plano Richardson North Dallas Tollway East LBJ Freeway Garland Southeast Dallas Mesquite / Rockwall Southwest Dallas Grand Prairie Total - Dallas
Source: Delta Associates 1 Class B per CoStar and greater than 50,000 SF. Does not include buildings under construction or buildings owned by the government. 2 Does not include sublet space. 3 Includes only buildings of 50,000 SF or greater.
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Real Estate Center Market Overview 2004 Dallas, Texas
Rent Rate Analysis of Class A & B Office Buildings - Year-End 2003 Average Asking Rent ($'s/SF, GSF) at end of:
Dec. 2001 Dec. 2002 Dec. 2003 Class A Class B Class A Class B Class A Class B Dallas CBD Uptown / Turtle Creek White Rock Central Expressway Preston Center Stemmons Freeway South Irving Las Colinas / Urban Center Office Center / LBJ Extension DFW Freeport / Coppell West LBJ Freeway Denton / Lewisville Frisco / The Colony Allen / McKinney Upper Tollway / West Plano Plano Richardson North Dallas Tollway East LBJ Freeway Garland3 Southeast Dallas Mesquite / Rockwall Southwest Dallas Grand Prairie Dallas Average 24.15 24.23 15.00 21.00 25.49 21.23 21.00 24.79 24.29 24.07 22.34 N/A 23.20 20.00 24.73 23.00 23.78 24.21 23.50 15.50 N/A 16.50 14.00 23.00 21.77 17.34 19.32 13.64 18.81 20.49 15.98 16.50 19.11 20.60 19.18 18.47 16.65 19.50 17.25 21.01 18.15 18.70 19.39 18.38 13.83 13.38 13.50 12.65 18.42 17.47 23.91 24.10 15.00 20.95 25.37 21.11 21.00 24.46 23.93 23.15 22.14 N/A 23.52 N/A 24.50 22.50 22.95 23.96 22.87 16.50 N/A 15.75 14.00 23.00 21.58 17.18 19.05 13.71 18.50 20.55 15.46 16.64 18.95 20.14 19.10 18.50 16.86 19.50 N/A 21.11 18.03 18.53 18.94 18.20 14.00 13.50 N/A 12.95 18.00 17.42 23.55 24.11 15.00 20.86 25.20 20.80 19.00 23.02 23.03 22.13 21.50 N/A 23.15 20.25 23.83 21.99 21.52 23.11 21.89 16.50 N/A 15.75 N/A 21.50 20.99 17.12 18.89 13.84 17.82 20.03 15.44 13.83 18.33 18.96 18.56 17.85 16.68 19.64 18.41 20.90 17.92 17.94 18.69 17.96 13.37 14.00 13.41 12.83 17.25 17.07
Source: Delta Associates
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Real Estate Center Market Overview 2004 Dallas, Texas
Rent Rate Analysis of Class A & B Office Buildings - Year-End 2003 Annualized Percent Change
Dec. 2002 - 2003 Class A Class B Dallas CBD Uptown / Turtle Creek White Rock Central Expressway Preston Center Stemmons Freeway South Irving Las Colinas / Urban Center Office Center / LBJ Extension DFW Freeport / Coppell West LBJ Freeway Denton / Lewisville Frisco / The Colony Allen / McKinney Upper Tollway / West Plano Plano Richardson North Dallas Tollway East LBJ Freeway Garland3 Southeast Dallas Mesquite / Rockwall Southwest Dallas Grand Prairie Dallas Average -1.5 0.0 0.0 -0.4 -0.7 -1.5 -9.5 -5.9 -3.8 -4.4 -2.9 -1.6 -2.7 -2.3 -6.2 -3.5 -4.3 0.0 0.0 -6.5 -2.7 -0.3 -0.8 0.9 -3.7 -2.5 -0.1 -16.9 -3.3 -5.9 -2.8 -3.5 -1.1 0.7 -1.0 -0.6 -3.2 -1.3 -1.3 -4.5 3.7 -0.9 -4.2 -2.0
Source: Delta Associates
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Real Estate Center Market Overview 2004 Dallas, Texas
Average Office Sale Price Dallas/Fort Worth, 2000 - 2003
Source: Delta Associates
Dallas Office Market Net Absorption, Year-End 2003
Source: Delta Associates
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Real Estate Center Market Overview 2004 Dallas, Texas
Dallas Office Market Under Construction, SF, Year-End 2003
Source: Delta Associates
Dallas Office Market, Year-End 2003
Source: Delta Associates
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Real Estate Center Market Overview 2004 Dallas, Texas
Rent Rate Analysis of Class A & B Office Buildings, Dallas Area
Source: Delta Associates
Allen City Office Building Permits
Allen City Building Permit Office
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Real Estate Center Market Overview 2004 Dallas, Texas
Carrollton City Office Building Permits
Carrollton City Building Permit Office
Cedar Hill City Office Building Permits
Cedar Hill City Building Permit Office
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Real Estate Center Market Overview 2004 Dallas, Texas
Dallas City Office Building Permits
Dallas City Building Permit Office
DeSoto City Office Building Permits
DeSoto City Building Permit Office
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Real Estate Center Market Overview 2004 Dallas, Texas
Farmers Branch City Office Building Permits
Farmers Branch City Building Permit Office
Flower Mound City Office Building Permits
Flower Mound City Building Permit Office
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Real Estate Center Market Overview 2004 Dallas, Texas
Frisco City Office Building Permits
Frisco City Building Permit Office
Grand Prairie City Office Building Permits
Grand Prairie City Building Permit Office
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Real Estate Center Market Overview 2004 Dallas, Texas
Greenville City Office Building Permits
Greenville City Building Permit Office
Lewisville City Office Building Permits
Lewisville City Building Permit Office
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Real Estate Center Market Overview 2004 Dallas, Texas
Mesquite City Office Building Permits
Mesquite City Building Permit Office
Richardson City Office Building Permits
Richardson City Building Permit Office
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Real Estate Center Market Overview 2004 Dallas, Texas
Dallas Market Overview 2004
Industrial
Summary of Industrial Market Indicators - All Space Year-End 2003
Total Rentable SF All Bldgs.1 7,091,125 56,489,452 25,003,866 17,765,799 13,261,387 30,134,529 36,400,980 23,372,065 24,662,467 47,419,296 16,872,037 45,053,803 14,835,980 14,077,813 15,763,860 4,552,746 10,726,577 8,443,070 411,926,852 Total Vacant SF All Bldgs 1,253,472 3,991,281 2,319,051 1,719,131 1,428,272 4,295,009 1,920,578 2,747,939 2,812,556 6,515,450 835,585 6,452,204 3,487,749 2,226,478 3,882,664 156,395 691,755 970,500 47,706,069 Direct Vacancy Rate (percent) 16.0 6.7 9.3 9.0 10.8 11.9 4.7 10.9 9.5 11.4 4.9 13.2 20.8 12.1 20.2 3.4 6.4 11.5 10.3 Vacancy Rate w/Sublet (percent) 17.7 7.1 9.3 9.7 10.8 14.3 5.3 11.8 11.4 13.7 5.0 14.3 23.5 15.8 24.6 3.4 6.4 11.5 11.6 SF Under Constr. or Renovation 1,121,951 2,104,808 91,000 1,170,250 199,848 26,270 860,000 5,574,127 Net Absorption (SF)2 (45,000) 134,000 268,000 910,000 (52,000) 968,000 (413,000) 419,000 (106,000) 1,393,000 (27,000) (1,001,000) (751,000) (462,000) (422,000) 33,000 53,000 7,000 906,000
Submarket Allen / McKinney Brookhollow Central East Dallas Denton / Lewisville East Dallas / Mesquite East DFW Airport / Las Colinas Hines North Lonestar / Turnpike Metropolitan / Addison North Stemmons / Valwood North Trinity Northeast Dallas / Garland Plano Redbird Airport Richardson Rockwall / Forney / Terrell Southeast Dallas / I-45 Southwest Dallas / US 67 Total - Dallas
Source: Delta Associates 1 Does not include buildings under construction or buildings owned by the government. 2 Net change in physical occupancy for direct and sublet space combined.
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Real Estate Center Market Overview 2004 Dallas, Texas
Dallas-Fort Worth Industrial Market Vacancy Rate
Source: Delta Associates
Dallas Industrial Market Net Absorption, SF, Year-End 2003
Source: Delta Associates
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Real Estate Center Market Overview 2004 Dallas, Texas
Dallas Industrial Market Under Construction, SF, Year-End 2003
Source: Delta Associates
Dallas Industrial Market Year-End 2003
Source: Delta Associates
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Real Estate Center Market Overview 2004 Dallas, Texas
Dallas Industrial Market Net Absorption SF, Year-End 2003
Source: Delta Associates
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Real Estate Center Market Overview 2004 Dallas, Texas
Carrollton City Industrial Building Permits
Carrollton City Building Permit Office
Cedar Hill City Industrial Building Permits
Cedar Hill City Building Permit Office
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Real Estate Center Market Overview 2004 Dallas, Texas
Dallas City Industrial Building Permits
Dallas City Building Permit Office
Frisco City Industrial Building Permits
Frisco City Building Permit Office
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Real Estate Center Market Overview 2004 Dallas, Texas
Grand Prairie City Industrial Building Permits
Grand Prairie City Building Permit Office
Lewisville City Industrial Building Permits
Lewisville City Building Permit Office
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Real Estate Center Market Overview 2004 Dallas, Texas
Richardson City Industrial Building Permits
Richardson City Building Permit Office
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Real Estate Center Market Overview 2004 Dallas, Texas
This annual report is created free of charge by the Real Estate Center at Texas A&M University. We strive to provide the most accurate, up-to-date, and insightful data to paint a detailed picture of Texas’ Metropolitan Statistical Area’s. The Center also provides numerous publications, resources, and data on building permits, employment, population, and home sales at http://recenter.tamu.edu.
Report compiled by: Administrative Coordinator Edith Craig Research Analysts Isilay Civan Blake Lacy
Real Estate Center, 2115 TAMU, College Station, TX 77843-2115 Phone: 979.845.2031 | Fax: 979.845.0460
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