Optimism in the Dallas – Forth Worth Office Market 

Key Takeaways

• A minor upward shift was observed in vacancy rates across all property classes, with the total rate settling at 20.4%. The major push came from Class A properties, which had a rate of 23.6%, while Class B stood at 18.2%.
• Rental rates, on the whole, slightly increased to $30.79, driven primarily by Class A properties reaching the $35.00 mark for the first time, unlike Class B properties, which had no upward movement this quarter.
• The quarter saw more positive absorption, with tenants occupying a total of 493,302 square feet.

In Q3 2023, the Dallas – Fort Worth office market exhibited commendable resilience, marking its second consecutive quarter of positive absorption. This indicates a rekindled interest in traditional office spaces, even as the broader landscape continues to change. Notably, there has been a decline in overall leasing activity compared to last year, potentially influenced by the prevailing global uncertainties and the widespread adoption of remote working models. However, this doesn’t seem to dampen the spirits of brokers and real estate professionals in the area. They remain upbeat, noting an increase in preliminary activities such as site visits, exploratory engagements, and initial lease discussions. This suggests a potential surge in upcoming transactions. While the Dallas – Fort Worth office market navigates its challenges, the current trends and broker optimism provide a hopeful outlook for the future of commercial real estate in the region.