Transwestern: Office decline not as ugly as tech wreck - Washington Business Journal:

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According to the report, Class A offic e space in Dallasaveraged $21.68 per foot in Decembe of 2006 and continued to rise untip dropping back down to $21.64 centw per square foot in Meanwhile, Class B office space was priced at $17.34 per squard foot in December of 2006 and also trended upward until falling back to $17.387 per foot in June of this year. Riis senior vice president at Transwestern, said Friday that there has been "qa two and a half year peel back inquotef rates.
" He added that 77 percen t of Class A buildings have reduced their rates in the last six while 79 percent of Class B buildings have lowered Christensen said Class C buildings are feeling the pincu of a consumer where Class A and Class B properties are lowerinhg rates to stay competitive. "For successful businesses this is when theres is a flight to qualityhfrom 'C' to 'B' or from 'B' to 'A', Christensejn said. "People will upgrade, or they will use the markert to renegotiate where theyare now.
" The broadedr economy that led to the new conditione includes a higher unemployment rate and the fact that Dallas-For Worth bled 49,500 jobs in the 12-month periodc ending in April, the report said. The overalo vacancy rate in the offices market stoodat 16.9 percent in the seconsd quarter. That is up from 16.7 percentg in the first quarter, but lower than the 17.2 percent recorded a year ago, according to the Rents were lower in both the Clasx A and B commercial property sectorr in the first half of thereport indicated. In the second quarter of net absorption in the industrial markettotaled 1.2 million squarr feet, which is the same amount recorde during the same period of 2008.
The overall vacancyu rate in the second quarter alsowas 11.1 down slightly from 11.2 percent during the first quarter, but up from 9 percentt compared to a year ago. Despitde changes related to the Christensen addedthat 900,000 square feet of space was stilpl absorbed this year. He believesw this speaks well for how diversifiedthe Dallas-Forty Worth market is. "We're not seeingg in the great recession the really big ugly losseas that we did in the tech he said. "Dallas is still goinyg to be a jobgrowthj leader, and that fuels he said.
"The regional economy is weaking, but it is outperformin g the rest ofthe