Pre-COVID-19 job figures: According to the Bureau of Labor Statistics, DFW maintained robust job growth by adding 119,000 non-farm jobs from January 2019 to January 2020, a 3.2% annualized gain.
Following a record 2019, net absorption for Q1 2020 was down to start the year with -150,751 sq. ft. of net demand for the quarter. Vacancy increased by 40 basis points largely due to the direct relationship with vacancy and absorption and the ± 250,000 sq. ft. of competitive inventory introduced to the DFW market that is scheduled to be occupied in Q2 2020.
There are currently 30 developments (excluding owner-occupied projects) in the construction pipeline totaling 5.4 million sq. ft., an increase of approximately 800,000 sq. ft. from last quarter. Four new projects broke ground in Q1 2020, including Hines’ new development in Deep Ellum called The Stack, and a new phase of development at The Star in Frisco.
Overall asking rents increased slightly from $25.17 per sq. ft. in Q4 2019 to $25.48 per sq. ft. on a full service gross basis. This is mainly due to a blip in lowered asking rates to end 2019, normalizing by the end of Q1 2020.