What a difference a few years can make in the Dallas office market. I have been assisting my clients locating and negotiating office leases for many years and I think we are entering one of the tightest landlord markets I have seen.
Yes there are some semi-soft Dallas office markets. For example Downtown Dallas has many high vacancy buildings but even they are in the lower grade properties. However most of the commercial property markets in Dallas Texas are becoming highly occupied. This in turn is the rent in Dallas.
On a recent transaction, I took a client on a tour in the far north Dallas office market and there were many buildings that couldn’t accommodate our requirement. You may think that isn’t very important, however it wasn’t to many years ago when almost every building had space that could be reconfigured to meet a tenant’s needs and that were willing to make sacrifices to get the tenant into their building.
This particular client selected two buildings that met their needs. One of those buildings was going to require a complete build out and the other one was a second generation space that would require minimal construction. I sent the request for proposals to the two candidates and received the first response from the building that needed a little tenant improvement.
Obviously it took longer to get a response from the second building because they needed to complete a preliminary floor plan and bid the job out for construction. You know I want a turn key construction addendum for my client so this step was important.
During the time we were waiting on the second response to our RFP to return I received a call from the first building that they have three offers on their office for rent and that they wouldn’t wait long for my client to respond. This message was really shocking because my client is a very respectable company with excellent financials. Any landlord would be happy to have them on their rent roll.
A few days later I had an email stating that the first landlord was resending their offer and going with another company. They admitted that our deal was better for many reasons but they knew that they could easily lease the Dallas office space and in their opinion there was no reason to wait.
Planning Helps In A Tough Dallas Office Market
Thankfully, I was updating new options every day for my client as I found them in the Dallas office market. So he knew that we still had a fallback in the event that we couldn’t work out a lease with the remaining building. The good news is that we were able to negotiate a mutually beneficial transaction for both parties and my client now has a fantastic Dallas office space with great terms.
If you are a tenant looking for office space in the Dallas office market you need to be aware that many Dallas office buildings are becoming more difficult to negotiate with in this market. You need to have professional tenant representation now more than at any other time. In the past you may have been able to negotiate a lease for your Dallas office space in the past but today the market is a landlord’s market.
A qualified Dallas tenant representative will be able to locate Dallas office market opportunities quickly and give you a strong position to negotiate the best terms and conditions for your office lease. A qualified Dallas Realtor will be able to help you get the job done well for your business. Don’t think that the landlord is going to wait for you to decide. They are going to do what it takes to lease their building so you need to have multiple options.