Q2 2023 Dallas Office Market Report

Dallas-Fort Worth’s office market faces headwinds with lessened demand and risingavailabilities. Overall vacancy remained steady at 18 percent, with the total available square footage equaling 88.7 million square feet, of which 11 million square feet is sublease space. Market rent growth saw slight, incremental growth from the first quarter to the second quarter.

Eight million square feet of space transacted in the first half of 2023, nearly 3.5 million square feet less than the 10-year leasing activity average. Though slower than historical averages, construction continues at a reasonable pace, with 7 million square feet underway. Well-leased, higher-end assets in premier office locations continue to receive investor interest, pushing the envelope for market pricing. Despite elevated uncertainty in the office sector, DFW’s economy witness continue demployment and population growth in the second quarter.

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