Office Boom Continues in Dallas
The Dallas office market is about to receive the most space it’s seen in 20 years. Nine buildings are in various stages of construction, which, when finished, will add 3 million sf to a market already experiencing some of the nation’s highest vacancy rates. Developers are convinced businesses will respond to the new space, favoring the new space to the old. Rents are projected for more than $30 per sf in the new towers while rents in the area are currently about $23 per sf.

Seattle Commercial Real Estate Market Sizzles
From warehouse to high-end office buildings, the local commercial real estate market is booming in Seattle, according to a report by CB Richard Ellis. At $26.75/sf, the average rent for class-A office space in downtown Seattle grew 12% in the third quarter, compared with same period a year ago. Seattle’s office vacancy rate continues to tighten, dropping 12.6% from 13.7% in last year’s third quarter. Seattle’s absorption rate is also expected to top 2 million sf by the end of this year.

$20 Billion in Construction Underway in NYC
The New York Building Congress, an industry group, says $20.8 billion of apartment, office and public projects are underway in New York City. That’s $2 billion more than last year, which posted a record level of construction projects. The group says some 30,000 units of housing will be constructed in the city each year through 2008. The 30,000 housing units are expected to average $5 billion a year in construction costs and with the World Trade Center construction not peaking until 2009, the construction boom is expected to continue for the next several years.

$1B Mixed-Use Project in D.C.
John E. Ackridge III plans a $1 billion mixed-use facility above the rail tracks in Washington’s Union Station. Ackridge, a Washington developer, paid the federal government’s General Services Administration $10 million for the air rights above the tracks. The 3 million-square-foot project is slated to include offices, restaurants, a hotel, for-sale condominiums and rental apartments built on a platform supported by columns 20 feet above the tracks.

Honolulu Office Market Remains Strong
Honolulu’s office vacancy rate is still declining in the 13 class-A office buildings that make up the heart of city. The city’s downtown posted a 7.1% vacancy rate in the third quarter and rental rates increased to $2.87/sf in the third quarter, according to Hawaii Commercial Real Estate. Despite the market healthiness, about 123 distinct spaces are available for lease, including seven spaces 10,000sf or larger.

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