Office demand in all of the major Texas markets (DFW, Houston, Austin, and San Antonio) is strong with the CBDs (Central Business District, a.k.a. “Downtown”) benefiting more than in previous cycles, and that’s a good thing. The livelihood of a city depends on a dynamic core.
Below is a link to a Wall Street Journal Article about a supply and demand surge in downtown Austin. Just last week there was another article in the Dallas Business Journal about the strong absorption of vacant Dallas’ CBD office space. This is a healthy trend that should continue as long as Texas companies keep creating jobs and people move into the state and the metropolitan areas.
In Dallas, improved transportation and the addition of downtown parks and attractions (the new Deck Park, Perot Museum, etc.) have also played a key role in making the areas more inviting for those folks who might not otherwise venture to the city’s core.