Dallas-Fort Worth office market report

Q1 2025

Last quarter we noted that DFW’s office market continues to stabilize. Vacancy continues to inch lower, and space availability is finally declining notably. Absorption also continues to be positive without the recent past’s quarter-to-quarter ups and downs. While leasing began to ramp up in 2024, the first quarter of 2025 saw it slow again. Multitenant development has also taken a pause due to high construction costs and interest rates, as well as implied sector risk as a less than perfect return to office plays out. This could impact future leasing and absorption as fewer new options exist for tenants. Overall, the first quarter is good news for DFW; however, it will take more time for normal market fundamentals to return, especially as many leases continue to get smaller, leaving less than desirable space available.
922,000 sf

Absorption is stabilizing

Absorption continued its positive run in the first quarter. This start of a new stable cycle is exceptional news given the 2020-2023 negative demand hits.
26%    

Vacancy remains high but is beginning to improve

Vacancy came down for the first time in the first quarter. Availability also dropped 2.8 percentage points since its 2023 peak.
3 msf

Leasing activity remains slower than normal

While deals are being signed, leasing in the first quarter was the slowest since 2009, suggesting it will take time to regain supply-demand balance.

Your source for the latest Dallas-Fort Worth office market reports

Get in-depth office market reports and insights from commercial real estate experts in the Greater Dallas-Fort Worth (DFW) area. Avison Young advisors look at DFW commercial real estate activities and the latest DFW statistics to provide you expert market research on the area’s office properties.

Explore different topics like the latest office market pricing trends and analysis of DFW’s current office real estate market conditions. Gain a better understanding of DFW’s office real estate outlook and stay ahead of current office space trends. Make smart decisions when it comes to investing in office properties in the Dallas-Fort Worth Metroplex competitive office real estate market. Avison Young is your trusted source for commercial real estate office market insights in Dallas-Fort Worth.

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