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