Dallas-Fort Worth Office Market Report
Major Leases Signal Brighter Days on the Horizon; Elevated Vacancy Illustrates Near-Term Obstacles
Leases by national corporations reiterate market’s appeal. The rapidly growing populace promotes labor availability, while the state’s business-friendly environment also drives companies’ desire to establish a footprint in the metroplex. Several large-scale move-ins occurring in 2021 highlight demand. Keurig Dr. Pepper occupied a 350,000-square-foot headquarters in Frisco in May, while Peloton established a 104,000-square-foot workplace in Plano in April. Additionally, Kohl’s opened a pair of 86,000-square-foot offices in North Richland Hills and Cedar Hill earlier this year. This will continue in the future, as Verizon plans to occupy 2.3 million square feet in Las Colinas in 2023, while Uber takes up 469,000 square feet in urban Dallas in late summer next year. Big leases like these should bolster absorption, while the downtick in construction provides a platform for the market to find balance as ceased restrictions nurture plans to bring staff back into the office.