Q3 2023 Dallas Office Market Report
Despite the Dallas-Fort Worth market leading in economic and demographic growth in the country, available direct and sublet space continues to rise as occupiers seek to understand the right combination to attract employees back to the office. While record office jobs have been created in the past 12 months, the market reached 17.8 percent in vacancy, surpassing the rate heights documented in 2003 and 2010.
Trending negative net absorption is anticipated throughout DFW as companies continue to downsize, right-size, and consider their approach to the workspace. Since 2019, the average lease size has been declining in the market. The trend reflects tenants’ apprehension in committing to larger spaces as firms continue to evaluate their space needs as leases near expiration. Demand has been contingent on several factors, including building age, location, workplace configuration, and traditional lease terms. The good news for occupiers is that the market is firmly tenant favorable.
An elevation in sublet availability weighs on the market, with sublease space totaling 11.1 million square feet of the 90.1 million square feet on the market, equating to 12.3 percent. About two-thirds of the space is concentrated in Far North Dallas, Las Colinas, Richardson/Plano, and downtown Dallas.
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