Page 4 - JLL Introduction/Submarket Overview

Far North Dallas
New product, access to labor
driving demand in northern
Net Absorption and New Supply
suburbs
1,500,000
Far North Dallas continues to see strong multi-tenant activity.
•
1,000,000
In Q3 2019, the North Building of Fourteen555 saw two large 2,000,000 Q3 2019 Submarket Overview
move-ins from Moss Adams (35k) and Common Desk (27k).
500,000
• Rental rates continue to grow in Far North Dallas, especially
SUBMARKET OVERVIEW in Legacy and Frisco. Class A buildings are switching to Triple -
Net rates as operating expenses, especially taxes, continue to
FAR NORTH DALLAS • rise. (500,000) 2015 2016 2017 2018 Q3 2019
Development will continue its march northward to Frisco due
to available land and Dallas North Tollway access, as well as Net Absorption New Supply
population growth. Two projects -- The Offices Two at Frisco
New product and access to labor is driving demand in the Northern suburbs Total Vacancy
Station and the Offices at The Realm is expected to deliver
later this year adding over 450,000 SF of inventory.
25.0%
• Far North Dallas continues to see strong multi-tenant DENTON McKINNEY Current Quarter YoY Change
McKINNEY
DENTON
activity. In 2019, AmeriSource Bergen’s new headquarters FRISCO 20.0%
FRISCO
was the largest absorption impact, followed by new tenants Inventory 46,490,214
15.0%
moving to the Offices One at Frisco Station. ALLEN % of Total Market 24.4%
ALLEN
10.0%
LEWISVILLE
• Rental rates continue to grow in Far North Dallas, especially LEWISVILLE Direct Vacant % 19.0% tu
PLANO
FLOWER MOUND
in Legacy and Frisco. Class A buildings are switching to Triple FLOWER MOUND PLANO 5.0%
Net rates as operating expenses, especially taxes, continue CARROLLTON Total Vacant % 20.9% q
CARROLLTON
RICHARDSON
to rise. GRAPEVINE RICHARDSON GARLAND YTD Net Absorption 890,212 
GRAPEVINE
0.0%
GARLAND
2015 2016 2017 2018 Q3 2019
1,321,098
• Development will continue its march northward to Frisco Under Construction Far North Dallas Total Vacancy  DFW Total Vacancy
due to available land and Dallas North Tollway access, as
well as population growth. The PGA headquarters broke IRVING YTD Deliveries 746,500 q
IRVING
Class A & B Rental Rates
DALLAS
ground in Q4 2019, and is close to 380, which is now the DALLAS MESQUITE Average Asking Rent $30.58 
FORT WORTH
FORT WORTH
MESQUITE
northern frontier of development. $40.00
Current Quarter YoY Change
$35.00
Inventory 46,035,272
$30.00
% of Total Market 20.9%
$25.00
Direct Vacant % 19.2% p
$20.00
Total Vacant % 21.1% p
$15.00
YTD Net Absorption 438,167 p $10.00
Under Construction 1,133,954 p $5.00
YTD Deliveries 300,000 q $-
Average Asking Rent $30.92 p 2015 2016 2017 2018 Q3 2019
Class A Class B
Derith Jarvis Walter Bialas Kari Beets
Senior Vice President, Research Vice President, Research Manager, Research
+1 214 438 6464 +1 214 438 6228 +1 214 438 1553
derith.jarvis@am.jll.com walter.bialas@am.jll.com kari.beets@am.jll.com
© 2019 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.