According to the Bureau of Labor Statistics, DFW maintained robust job growth by adding 107,300 non-farm jobs since October 2018, a 2.9% annualized gain.
Net absorption in Q4 2019 had large gains from the previous quarter, with over 1.48 million sq. ft. of space taken up, yielding 3.49 million sq. ft. total for 2019. This is the third-highest year of net demand for the decade.
Vacancy dropped slightly in Q4 2019 despite the positive absorption. This is largely due to ±1.9 million sq. ft. of competitive inventory introduced to the DFW market and tenant appetite for efficient high-quality space.
There are currently 28 leased projects in the construction pipeline, totaling 4.62 million sq. ft. with a pre-leased rate of 30.7%. Seven new projects were added in Q4, including the PGA Headquarters, a large beverage company's new HQ in Frisco and the East Quarter development.
Overall asking rents decreased slightly from $25.40 per sq. ft. to $25.17 per sq. ft. on a full service gross basis. However, DFW average rents still showed a 1.2% growth rate year-over-year. Class A rents remained relatively flat, finishing the quarter at $31.42 FSG.