After the boom-year of 2017, 2018 is setting up to be a soft landing for the DFW office market. Q1 started off strong, absorbing a total of 1.5 million square feet, with Liberty Mutual’s 1.1 million square foot build-to-suit campus accounting for 73% of this total. Multi-tenant activity rebounded after being negative 3 of 4 quarters in 2017, with move-ins totaling about half a million square feet.
While activity may be slower in 2018 than in previous years, there are few signs that this is anything other than a breather. Job growth has slowed, but unemployment is so low in the metroplex, arguably under the natural rate of unemployment, that employers must compete to fill needed positions making it harder to add new jobs.