How Much Does Office Space Really Cost in DFW?
Wondering how much office space in the Dallas/Fort Worth area is going to cost you? That question can be a bit more complicated than it seems. There are several factors that affect the base lease prices for office spaces. You’ll also need to factor in your business’ needs to get an estimate on prices for an office space that works for you. We’ve broken down a few details to consider as you look for office space in Dallas and Fort Worth.
Factors that affect the cost of office space in Dallas/Fort Worth
Space isn’t the only factor that determines how much you’ll pay for an office. There are several factors that can have a big impact on how much your company will have to spend for a suitable space.
Location plays a big part in how much you’ll pay for office space, so we cover how it affects your overall cost a little further down.
Amenities are often overlooked when estimating office space fees, but they may play into the overall rent, particularly in areas where there are fewer businesses within easy walking distance to cater to employees that work in the buildings. The types of services that are either included or available to tenants also factor into price of office space.
What you’ll pay overall in a given building may be greatly affected by operating costs. Make sure you find out what is included in the base rent price and what the average operating costs are per square foot so that you can get a more accurate estimate of the actual cost of leasing the space.
Office class matters
Office spaces are delineated into three different classes: class A, class B, and class C.
Class A spaces are top of the line. They are typically newer, better constructed, managed at a higher level, and potentially possessing lots of amenities and elegant common areas. They’re more often than not found in the most desirable areas of the city.
Class B buildings may offer a similar experience to Class A buildings, but slightly diminished in quality overall and are likely to be found in more affordable, but still popular areas. They may be better for businesses on a budget as they’re likely to be a little more affordable than premium Class A buildings.
Class C buildings are for the business owner on a serious budget as they tend to be older and not as well maintained as Class A and B buildings. They offer only the most basic of premises from which you can conduct your business.
The higher the class delineation of a building, the higher you can expect to pay for office space.
How does location affect the cost of office space in Dallas/Fort Worth?
Office space in the DFW area is typically less expensive on average than office space in comparable large cities, despite rent prices that have risen up to 25% since 2012. Dallas boasts lower rental rates for office space than even other large cities in Texas like Austin and Houston. However, prices here vary across the metroplex area.
Comparing the price of offices in different DFW areas
Generally speaking, Uptown Dallas lease rates are significantly higher than offices in Downtown Dallas. Rates Downtown are very similar to what you’d find in Los Colinas and the very northernmost parts of Dallas. Downtown Fort Worth and Downtown Dallas offer similar office space prices. Northwest Dallas offers some of the most affordable office spaces. If you’re on a budget and aren’t terribly picky about other factors, the Northwest might just be your best bet.
These are just generalizations based on the average cost of office space in each area. Costs will fluctuate on a building-by-building basis.
Suburbs vs. Downtown
Overall, you’re likely to pay slightly less for an office space in the suburbs of either Dallas or Fort Worth. Fort Worth’s suburban office spaces are, on average, cheaper than Dallas’ by just a hair. The one exception to that is Northwestern Dallas, where we found some of the lowest average office space costs.
What kind of office space does your business need?
When looking for an office in Dallas or Fort Worth, ask yourself the following questions to get a better idea of what kind of space is going to work for your business. The answers can help you start to estimate your overall cost of office space.
What is my ideal location?
Is being located in a specific area of DFW necessary for your business? You’ll want to factor in things like where your average employee lives, parking opportunities and prices, and customer access. Certain businesses need to be in a trendier area like Uptown to thrive, and some will do just fine in a more family-centric area like Northern Dallas.
Your budget may also be a large part of the equation when it comes to determining your location since some areas of DFW are much more expensive on average than others.
What type of space works for my business?
Do you need a classy office space (Class A, obviously), or will something more utilitarian do? Do you need an individual space or is a suite in a large building okay? The variety of office types is endless, so really consider what will work best for your business.
How much square footage do I need?
You can start to calculate how much space you need based on a rough estimate of about 125-150 square feet per employee. While this may not provide a totally accurate estimate, it can give you a good jumping off point to determine about how much space you’ll need. Don’t forget additional square footage for common areas, meeting rooms, reception areas or wait rooms.
The final decision
Regardless of your ideal office space or budget, the Dallas/Fort Worth area offers a great variety of spaces at a great rate compared to similar markets. It’s known as an entrepreneurs’ city, and there are a notable number of company headquarters in the area. There’s a reason that DFW is the 5th largest office space market in the country with more than 225 million square feet of office space in the area.
Let Executive Workspace find your perfect office in DFW
Find the office space that works best for your business with a variety of office types and locations from Executive Workspace. We have multiple locations throughout the Dallas/Fort Worth area, so you can find your office in your ideal location. Choose from office types like private offices, shared space, temporary offices and flexible offices, and decide on a short or long-term lease. You can even customize your office space to guarantee you get the exact office you’re looking for.
Article by Taylor Roatch