Effective Rent Growth Slowing in Urban Core

DALLAS-While once Dallas’ urban core was hot when it came to annual effective rent growth, as of August 2013, that figure dwindled to below the region’s MSA average. According to statistics from locally based Axiometrics Inc., annual effective rent growth in Dallas’ Oaklawn submarket was 1%, underperforming the MSA’s 3.8% rate, and a definite drop from the 12.3% reported during August of 2011.

Axiometrics’ researchers point out that the reason for the precipitous drop is due to a rise in construction due to the high effective rent growth from a couple of years ago. The researchers also state that occupancy has declined in the Oaklawn submarket. In August 2011, occupancy was 95.8%. In August 2013, it stood at 95.3%.