Absorption slowed in the DFW Big Box market in Q3 2017, decreasing from 3.5 million square feet in Q2 to 2.9 million square feet in Q3 2017. Year-to-date absorption through Q3 is 27% behind the total through the same time in the prior year.
Big box vacancy increased 0.5% from Q2 2017, due largely in part to the delivery of 4.5 million square feet, of which approximately 2 million square feet was delivered vacant. South Dallas’ vacancy continued its upward climb, reaching 22.2%, while Great Southwest also had a high vacancy rate at 18.2%.
Nine properties totaling 4.5 million square feet were delivered in Q3 2017. Year-to-date deliveries have exceeded net absorption by 4.8 million square feet. All but one of the Big Box properties that delivered in Q2 2017 were speculative, and properties were 48% leased as of the end of the quarter.
Asking rental rates decreased in Q3 2017 for the first time since Q1 2015. However, the decrease was a slight $0.06 overall, a 1.6% decrease from the prior quarter, and still up 3% from Q3 2016.
Absorption slowed in the DFW Big Box market in Q3 2017