DFW Office Market in Quicksand

While the economy is Dallas is one of the more robust in the country, office vacancy rates remain high. In Q3, the DFW office market vacancy increased to 25.6%, marking the highest level since the real estate recession in the late 1980s.

A recent Avison Young Q3 survey found DFW’s economy continues to be one of the most robust in the U.S. due to its low cost of doing business, economic diversity, and pro-business attitude. Although office jobs have increased over the last 12 months, office space and sublet space has increased to record levels mainly due to the continued movement toward remote hybrid work.

“Although year-to-date leasing activity was positive, it was sluggish and not sufficient to take down the increase in office space availability,” noted Avison Young Analyst, Walter Bialas. 

There was one asset group that did well. Trophy assets outperformed the market averages and saw positive absorption for the year.