Downtown Dallas Vacancy Surges After AT&T Exit

Downtown Dallas office market faces a major test after AT&T’s exit, creating over 1M SF vacancy in Whitacre Tower amid rising challenges.

January 21, 2026

Jordan B.

AT&T’s move leaves over 1M SF vacant in Downtown Dallas’ Whitacre Tower.
Downtown’s office vacancy rate climbed to 34.1% at the end of 2025.
Tenants prefer Uptown and northern suburbs over the downtown core.
AT&T’s exit could decrease downtown Dallas property values by 30%.

Key Takeaways

Major Vacancy Hits Downtown Core

According to Bisnow, AT&T’s relocation from Downtown Dallas marks a significant blow to the central business district, creating a rare, large vacancy of more than 1M SF in Whitacre Tower. While Dallas-Fort Worth remains a leading CRE market, analysts do not expect new tenants to quickly backfill the space.

Experts cite the building’s single-user design and ongoing challenges—including crime, homelessness, and shifting tenant preferences toward Uptown and suburban locations—as major obstacles for attracting large occupiers to downtown office assets.

Office Demand Trends

Despite regional momentum and four quarters of positive absorption in 2025, downtown Dallas office vacancy rose to 34.1% by year-end. Nearly 9M SF remains empty in the CBD, up from 7M SF in 2019. This comes as downtown’s office inventory decreased from 28M SF to 26M SF over the same period, highlighting persistent demand issues.

Much of the demand has shifted to newer developments in Uptown and the suburbs, fueled by companies seeking modern amenities, walkable environments, and proximity to talent pools. Notable firms—including Bank of America, Invesco, and Deloitte—have already made similar moves out of the downtown core.

Market Impact and Future Outlook

AT&T’s upcoming departure is expected to have wider ramifications. Boston Consulting Group projected a $2.7B loss in downtown’s total value, with annual property tax revenue possibly dropping by $62M. City officials have announced plans to tackle major barriers such as crime and homelessness. However, these efforts have yet to reverse the decline in leasing interest for CBD office assets.

Some industry leaders believe municipal use could be a solution, as Whitacre Tower’s single-tenant layout complicates multi-tenant leasing. Others argue that the city must leverage Dallas’ strong development base to reposition downtown for new uses and investment.

What’s Next for Downtown Dallas

AT&T plans to remain in Whitacre Tower through at least the second half of 2028 before relocating to its new suburban campus in Plano. With continued tenant migration to Uptown and the suburbs, the downtown office market faces a challenging road ahead. The telecom giant’s move is already catalyzing growth in Plano, signaling how corporate relocations are reshaping the region’s economic geography. Success may depend on creative repurposing, public-sector intervention, or leveraging premier local development talent to revitalize the area.