Avison Young releases Third Quarter 2024 DFW Office Market Report

Dallas-Fort Worth, TX – Today Avison Young released its Third Quarter 2024 Office Market Report for Dallas-Fort Worth (DFW).

The DFW office market saw availability for both direct and sublet space come down 2.8 million square feet (msf) during 2024. Even with this positive move, availability remains elevated at 67.5 msf due to the continued disruption of remote and hybrid work. As of the third quarter, net office absorption tuned positive for the year at roughly 700,000 sf.

“Office space availability has improved but is persistently high. Deals are being done, although leasing activity continues to be sluggish and not sufficient to take down the high level of space availability,” noted Avison Young Senior Insight Analyst, Walter Bialas.

The market saw leasing activity total 9.7 msf through Q3 2024. This is on par with quarterly performance over the last two years and is 55% to 70% of DFW’s historic third quarter total pace on a square footage basis. DFW’s Q3 2024 office vacancy (26.1%) and availability (28.7%) have stayed stable for the last few quarters.

“I think we have finally reached the bottom of this cycle. Q3 2024 stats showed modest improvement across the board. Vacancy looks to have stabilized, and availability has come down for the first time in a long while. And even though 2024 absorption was choppy, it is in positive territory,” stated Greg Langston, Principal and Managing Director of the firm’s Dallas office. “As we have noted before, demand is strong for top quality buildings in walkable locations. Leasing has also been solid among small- to mid-size tenants, under 10,000 sf who are returning to the office before many larger companies.”