DFW Office Quarterly Market Stats

Dallas - Fort Worth Office

Key Takeaways

• While Q3 2024 posted a slight negative net absorption of 148,369 square feet, the market has still outperformed last year’s negative trend with a positive year-to-date total of 1,444,600 square feet.

• Class A vacancy rates continue to climb, while Class B vacancy rates show a slight decline in Q4 as they did in Q3.

• Class A and B rental rates moderately rose in Q4, maintaining last quarter’s upward trend.

• Direct spaces experienced a significant increase in vacancies, while sublet spaces saw a marked reduction this quarter dropping to the lowest since Q4 2021.

A Quarter of Resilience and Increased Demand

The last quarter of 2024 revealed that the Dallas-Fort Worth office market is gearing up for a gradual return to pre-hybrid and remote working conditions. The entire year of 2024 has shown a continuous positive momentum toward normalcy in the office market. Compared to last year’s total available square feet high of 64,505,777, Q4 2024 has shown a decrease to a low of 61,555,157 square feet. Furthermore, 2024 has revealed more positive net absorption than last year’s net totals. Although an increase of new supply of office space has come to the market in Q4, there has been a trend of companies moving back to working in office. This will cause a surge in both direct and sublet office space demand. This can possibly contribute to the continuous climb in both Class A and B rental rates and a decline in the overall vacancy rate to 20.7%. The year 2024 proved the DFW office market to still be resilient and moving forward amongst the ever-changing conditions of the working population. Market Indicators

Despite positive absorption this year, nearly 4 million square feet of new space has kept vacancy slightly rising, marking seven quarters above 20%.