DFW Office Rates Showing First Overall Decline in Asking Rates This Cycle
Asking rates are a lagging indicator to the market fundamentals. After a market downturn, asking rates are not typically significantly impacted until 4 to 6 quarters after the market has shifted. The decline in both direct and sublet asking rates since the end of the second quarter of 2021 should not be surprising as it falls into the typical time range. This decrease in rates, however, has only been slight to date, with overall averages still up on a year-over-year basis.
Specific properties that have reduced their rates since the end of the second quarter include International Plaza II, The Palace Office Center, Westpark Plaza and the Lakes at Bent Tree.