Q1 2023: Dallas Office Market Report

The Dallas-Fort Worth (DFW) office market has been experiencing growth and performing well for several years. The market covers a large area, including Dallas, Fort Worth, and surrounding suburbs. Total market inventory is over 200 million square feet, with a vacancy rate of around 18 percent. While this may seem high, it was lower than the national average and had been steadily declining over the past few years. With many office tenants resizing their spaces, firms are continuing to re-evaluate their office utilization. However, there are submarkets moving against the trends, despite structural challenges. Suburban office nodes, including Upper Tollway/West Plano, Allen/McKinney, and Plano, have led the market in net absorption over recent quarters.