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Market Report

Dallas-Fort Worth Office Market Report

2024 Investment Forecast

Nation-Leading Growth in Traditional Office-Using
Sectors Counteracted by Remote Work Prevalence

Strong economic conditions contrast eroded leasing. Dallas-Fort Worth’s professional and business services, financial activities and information sectors — which together represent a large portion of traditionally office-using jobs — are growing at a robust pace. From the end of 2019 through the close of 2023, the Metroplex added 244,000 such positions, ranking first in the nation and beating the next-closest market, Austin, by over 130,000 roles. That trend is expected to continue in 2024 as Dallas-Fort Worth more than doubles any other metro in traditional office-using employment growth. Historically, this is a strong signal for office demand; however, in a post-pandemic era of remote work, that no longer seems to be the case. Net absorption has fallen shy of new supply in each of the past four years, and the same is expected in 2024 to an even greater degree. A wave of expiring pre-pandemic leases will drop net absorption this year to its softest measure since the 2020 shock. Nonetheless, the sharp rise in traditional office-using jobs showcases that the market is attractive to relocating firms amid an expanding skilled labor pool. Over time, corporate in-migration should help offset current space attrition.
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