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Market Report

Dallas-Fort Worth Office Market Report

4Q 2023

Metroplex Vacancy Has Held Sturdy After the Initial
Pandemic Shock, but Additional Hurdles Ahead

Two areas with opposing cost dynamics among top performers. Office absorption has been positive in four of the last five quarters through June 2023. The market remains varied, however, with 10 of Dallas-Fort Worth’s 18 submarkets recording annual vacancy reductions, while four areas had hikes of at least 100 basis points as of midyear. Two standout locations of late include Preston Center and Southwest Dallas, which feature contrasting characteristics. Vacancy in the Southwest submarket fell 500 basis points year-over-year, as it is one of just three Metroplex areas with an average asking rent below $18 per square foot. On the other hand, the only submarket with a mean marketed rate above $35 per square foot — Preston Center — also noted a 260-basis-point vacancy drop. The Class A segment here is outperforming the market, warranting its standing as one of the fastest-growing spots for office supply in the Metroplex.
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