Move Over Co-Working; Financial Industry is the Real Powerhouse
By Steve Triolet, Younger Partners Research Director
While co-working companies have dominated much of the headlines as far expansion in DFW, the financial industry (which includes insurance companies) have been taking down more office space in 2018. Companies like Allstate Insurance, Mr Cooper (formerly Nationstar Mortgage), New York Life and others have contributed to the majority of positive net absorption over recent quarters. On the opposite end, technology companies been very active as far as leasing activity but have been responsible for overall negative net absorption.
Much like we saw law firms squeezing more attorneys into less space over recent years, a similar trend has been impacting the technology industry, with tech companies downsizing their real estate footprints. NTT Data, Nokia, NetScout and other technology related companies have been moving into newer space and shedding excess square feet in older properties in the process. The attached chart shows the industry clusters and whether in aggregate they have been expanding or contracting in the DFW office market.