Industrial Vacancy has remained high in the Dallas industrial real estate market, although net absorption has been strong. Reis reports that for non-manufacturing, warehouse/distribution space, vacancy finished 2006 at 12.7%, down 40 basis points over the year. Asking and effective rents are reported at $3.98 psf and $3.75 psf, both showing solid annual gains of 4.3% and 4.5%, respectively.

Retail After spending most of 2006 just shy of 11.0%, the vacancy rate for the Dallas community/neighborhood shopping center real estate market finished the year at that rate, up 30 basis points over the quarter and 70 basis points over the year. Reis reports average asking and effective rents of $15.78 psf and $14.08 psf, up 3.4% and 2.8%, respectively, over the year and 0.7% and 0.5%, respectively, over the quarter.

Office As the market with the second-highest vacancy rate of Reis’s 79 major markets, Dallas has the unenviable distinction of finishing 2006 with a vacancy rate of 21.1%. However, net absorption was strong, and rents posed solid gains. For general purpose, multi-tenant office space, Reis reports fourth quarter average asking and effective rents of $18.65 psf and $15..71 psf, up 4.3% and 6.1%, respectively, over the year.

Multi-Family Vacancy inched upward in the Dallas apartment market in the fourth quarter. Reis reports vacancy at 8.3%, up from 7.8% in the third quarter but only by 10 basis points over the year. Reis reports average asking and effective rents of $758 and $686 per month, up 1.7% and 2.5%, respectively, over the year.