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Market Report

Dallas-Fort Worth Office Market Report

2Q 2023

Development Upshift Brings Greater Pressure,
But Workforce and Cost Dynamics Buoy Demand

Appetite for newly-built space being tested. Office completions in 2023 are projected as the third highest in the nation and account for 1.7 percent of existing inventory, marking the largest annual delivery volume since 2019. Mild construction had been keeping the market in check, with vacancy rising by only 60 basis points across 2021 and 2022. This year, availability rises at a faster pace as pre-2020 leases expire and firms recalibrate needs. The vacancy impact of new supply should be partially alleviated, however, as a penchant for high-quality offices has emerged to attract in-person workers. In June, CHRISTUS Health will occupy 456,000 square feet at a project underway in Las Colinas. At Home also took up 176,000 square feet of newly-built space here in February. Conversely, the West Love project in Stemmons Freeway, as well as Granite Park Six and The Tower at HALL Park in Frisco, will combine to deliver nearly 1.4 million square feet of space that was unaccounted for as of May. 
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