Looking for an office space in Dallas but not finding the right space? If yes, you’re at the right place. Dallas is a booming business city with hundreds of small and medium-sized businesses.
There is ample Dallas office space available that will cater to all types of businesses and startups. Whether you’re looking for coworking space a virtual office or private office, here is everything you need to know before making a rental decision: how much an office space costs in Dallas and popular neighborhoods where numerous listings are available. Let’s dive into this blog and uncover everything there is to know about renting an office space in Dallas.
Overview of Dallas Office Space Market
The Dallas office space market is the second-most active commercial real estate market in the United States.
The office space lease rates in Dallas remain surprisingly affordable.
However, not all offices have been able to benefit from this environment and some regions such as north Fort Worth have faced challenges. The office space lease rates in north Fort Worth are still lower than that of downtown areas. Popular locations for leasing office space in Dallas include Freeport, Richardson Industrial, Quorum, and LBJ Freeway respectively.
Rental Prices for Office Spaces in Dallas
– Rental rates for office space in Dallas, TX, currently average around $30.00 per square foot annually. Ranging from the mid $20s to over $40 per square foot per year.
– Rental rates can vary depending on the sub-market, with the highest rates reaching up over $40 per square foot annually in Uptown/Turtle Creek.
– Net absorption of office space in Dallas was over a negative 1 million square feet in 2022. Much better than the negative absorption in 2020 and 2021 which was the worst in DFW’s history and finally slowed in 2022. The year was choppy, as companies adjusted to hybrid work patterns, although several of the high-demand sub-markets saw positive gains in 2022.
– Vacancy rates increased to over 25% and 29%, if you include sub-leases, making it a tenant’s market. This is the highest vacancy rate since the 1980s.
Factors Driving the Demand for Office Space in Dallas
The office market in Dallas is slowly coming back. In recent years, the demand for office space dwindled and has recently improved as companies come back to the office and expand their operations and add more employees. This growth has been fueled by the end of the pandemic, a diverse economy with major companies headquartered in the area, and favorable real estate prices.
Occupiers are looking for office space that offers amenities such as conference rooms and cafeterias, open-plan designs, and high-speed Internet access. They are also demanding spaces with modern finishes and sustainable features, such as energy-efficient building systems and water recycling systems. As a result of all these factors, office space in Dallas is getting expensive.
Benefits of renting an office space in Dallas
Dallas is a great spot for economic and cultural investment, making it an ideal destination for businesses looking to set up shop in a dynamic market. The city’s amenities, such as its central business district and convenient transportation system, have also helped increase its appeal. The average rental rate for office space in Dallas is currently just over $30 per square foot, which makes it an economically viable option for commercial real estate users.
The demand for office space in Dallas will only increase with the coming years as more people venture into urban centers to seek employment opportunities and pursuit their interests.
What to look for when renting a Dallas office space?
– Consider the size of office space you need
– Look into the particulars of the office space
– Check out amenities offered by office space
– Listen to your tenant rep broker for better insight
– Consider rental rates and lease terms
– Ensure that office space is well-maintained and safe
– Consider security measures like CCTV and access control systems
As a businessperson, it is vital to plan your office space correctly. You need to consider various aspects while choosing an office space such as size, amenities, rental rates, lease terms, etc. Apart from all this, you have to make sure that the office space is well-maintained and safe for you and your team to work in. You can also look into different types of office spaces available in the market. Many companies are embracing the coworking style of officing.
Top 3 areas to rent an office space in Dallas.
The office market in Dallas is popular among businesses and tenants as it offers a wide range of office spaces, ranging from 30 square feet to 500,000 square feet. For lease-up business space, office space in Dallas can be found in all sub-markets of the city, including downtown Dallas, Uptown, and Deep Ellum.
The office space rental prices in Deep Ellum are relatively higher than those in downtown and uptown Dallas. This is because of its location near the light rail station and commercial area which attracts many tenants. In general, office space lease rates are starting to increase again and are expected to increase further in the next few years.
A majority of the coworking spaces available in Dallas are also affordable compared to other metro areas. Besides, coworking spaces provide an affordable option for small business startups and budding entrepreneurs who need an easy access to office space on short notice without worrying about high costs or long-term lease agreements.
Factors to consider before renting a Dallas office space.
Before you rent office space in Dallas, it’s important to consider how much office space you need for your business and understand the market rate for office space in Dallas. You can start by comparing prices from different brokers and reading reviews online. This will help you determine the best deal for office space in Dallas.
Once you’ve found a property, it’s important to get detailed information about the amenities, culture, and economic investment opportunities available at that property. Your office tenant rep can help you with this. Exploring this information will help you make an informed decision about office space in Dallas. Finally, it’s worth considering the type of office space that best suits your business needs, such as an established enterprise or a scaling startup.
Tips for getting the best deals on Dallas office space.
Most importantly take advantage of using a tenant rep. It won’t cost you anything out of pocket and will likely save you thousands of dollars over the long term. If you’re looking to find office space in the Dallas area, it’s important to assess your office space needs. Having a clear understanding of your needs is paramount in finding the right space.
You should create a shortlist of at least 3 office space options that fit your needs and budget, taking into account factors like size, amenities, and lease term. After you’ve made your choice, it’s time to negotiate lease terms and terms of the operating lease agreement. Here is where your tenant rep will be invaluable with their knowledge of the market and other deals that have been done recently. You should be know about current market conditions, such as vacancy rates, net absorption, and delivery trends, so that you can make an informed decision based on the current state of the market.
Finally, consider virtual office space solutions if a physical office space isn’t necessary. This route can be highly beneficial for businesses looking to save costs without sacrificing essential office space amenities.
Key things to keep in mind when signing a Dallas office lease.
– Before signing a lease agreement for an office space, consider the length of the contract. This will help you plan your finances and budget better.
– Be aware of the terms and conditions included in the lease agreement to understand what is required of both parties. This will help you avoid any misunderstandings and ensure a win-win solution for everyone involved.
– Read the Rules and regulations attached to the lease. You may be surprised by some of the limitations.
– When looking for office space, be aware of the amenities provided by the property. These include access to internet and electricity, as well as other facilities. Ensure that you look at office space that goes beyond these basic amenities to meet your business needs.
– Have a professional review the lease for you. A good attorney and real estate broker can save you a world of hurt.
Frequently Asked Questions
What types of office spaces are available in Dallas?
Dallas has plenty of office space for lease, with over 66 million square feet available for rent. The Uptown, Freeport, Richardson Industrial, Quorum, LBJ Freeway, Park Central, Office Center, North Dallas, and North Central Expressway are some of the popular office locations within the city.
Rates for office space in Dallas also tend to be lower than other cities, making it an attractive option for business owners who want to keep overhead costs down.
For those looking for short-term contracts and modern amenities, coworking office suites coworking office suites are available with a range of professional business support services. These office suites are designed to give business owners a flexible workspace that comes with all of the modern facilities and amenities they need.
Finally, virtual office solutions can be found in Dallas too. These come at low monthly fees and offer businesses the flexibility they need to operate remotely with optional extras like mail forwarding services available.
How can I find a good deal on office space rental in Dallas?
If you want to find a great office space rental in Dallas, then start by assessing your needs. Most importantly make sure you get the services of a local experienced tenant rep, like the ones we have at OfficeFinder, to make sure you avoid costly mistakes and get the best deal possible.
What are some tips for negotiating the best office space rental deal in Dallas?
If you want to negotiate the best office space rental deal in Dallas, here are some tips you should follow:
First, contract the services of an experienced tenant rep who can research the office space rental market in Dallas and provide you an understanding of what’s available and at what price. This will give you an idea of how much you should be able to negotiate for a better rate.
Second, negotiate with multiple landlords to get the best deal. Understanding your company’s needs and making sure that the space meets those requirements is also essential.
Third, consider long-term costs such as utilities, taxes, insurance, and maintenance when considering a lease agreement. Lastly, leverage your bargaining power by getting multiple quotes before signing a lease. This way, you can compare and make sure that you are getting the best possible deal.
Are there any particular areas of Dallas that are better suited for office space rental?
Yes, the Telecom Corridor is an especially popular spot for tech companies who want to rent office space. Other popular areas for office space rental include Freeport, Richardson Industrial, Quorum, LBJ Freeway, Park Central, Office Center, North Dallas and North Central Expressway.
Now that you know what to expect in the Dallas office space rental market and how it differs from other U.S. cities, you can plan your business expansion more efficiently. In addition, you can leverage this knowledge to strike a favorable deal.
Contact us for more information.