By Robbie Baty
Dallas’ Downtown and Uptown office markets are evolving at a rapid pace. As tenant advisors, my team and I find that many tenants who are considering renewing or relocating their office leases are surprised by the increased prices in the area.
Of course, Downtown and Uptown are some of the best areas to live, work and play in Dallas. While Uptown is considered the epicenter of the Dallas office market, Downtown is a more affordable alternative that offers comparable walkability and amenities and, arguably, just as much of a “cool factor” as Uptown.
Let’s take a closer look at some of the key differences—and one notable similarity—between Downtown and Uptown:
Cost per square foot
The cost of office space in Uptown continues to trend upward and currently averages $46.31 per square foot (sf). However, you’ll see a wide range of asking rates just outside of Uptown. For example, Downtown averages $27.64 sf, while Turtle Creek averages $41.41 sf, giving office tenants a variety of options that are still within a central location.
Compared to Uptown, parking is tighter in Downtown, where there is an average of 1.8 spaces per every 1,000 sf leased. In Uptown, the newer office buildings typically offer more parking, so the average is 3 spaces per every 1,000 sf leased.
Uptown definitely has the edge on multi-family living, offering more than 20,000 units, while Downtown has a little over 7,100. However, both areas are within a short walk, drive or e-scooter ride to thousands of apartments, condos and townhomes, and more are being built all the time.
Downtown and Uptown are two of the most popular places to live, work and play in DFW. Both have a distinctive, energizing feel, and they provide a work atmosphere with endless entertainment options that competes with any major city area in the country.
The Dallas area isn’t exactly known for its walkability, but Downtown and Uptown are two areas that go against that trend. Out of 100 possible points, Downtown and Uptown score 91 and 90, respectively, illustrating that both areas are easy to navigate and don’t require a car for most daily errands. Walkability is particularly beneficial for office tenants, since it puts employees within easy walking distance to restaurants, grocery stores, apartment living, entertainment and other sought-after perks of city life.
Although Downtown and Uptown are each attractive in their own way, they both offer office tenants the opportunity to set down roots in some of Dallas’ most dynamic areas. Our team specializes in representing tenants in Downtown and Uptown on office lease negotiations. As tenant advisors, we work to create leverage on each client’s behalf, helping them secure favorable lease terms so they can focus their resources on what really matters—growing their businesses. If your company is considering renewing or relocating its office lease in Downtown or Uptown, we would be happy to help you successfully navigate these competitive markets.
Robbie Baty is an Executive Director within Cushman & Wakefield’s Tenant Advisory Services Group.