- Dallas office vacancy reached 18.6% in September, down 360 basis points in 12 months, though still above the 17.8% national rate, according to Yardi Matrix.
- Office investment hit $3.7 billion through September, third among the top 25 markets, led by Towers at Williams Square and the $142.9 million Pinnacle Tower sale.
- DFW’s competitive pipeline of 3.3 million SF is second only to Manhattan, and construction starts rose more than 240% from 2025 while completions fell nearly 85%.
Dallas-Fort Worth’s office market kept improving through the third quarter of 2026, with one of the biggest year-over-year vacancy declines in the country, according to Commercial Property Executive, citing Yardi Matrix data.
Vacancy hit 18.6% in September, down 360 basis points from a year earlier.
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Vacancy and Rents
Dallas still sits above the 17.8% national rate, but it is well below Austin (24.5%), San Diego (23.7%) and Houston (23.6%).
Listing rates averaged $32.52 per SF, under the $33.18 national figure. The Bay Area ($56.99) and Austin ($46.20) are far higher.
Capital Keeps Flowing
Office sales totaled $3.7 billion through September, the third-highest total among the 25 largest markets, behind the Bay Area ($4.6 billion) and ahead of Houston ($2.1 billion) and Austin ($1.6 billion). Dallas space traded at about $196 per SF, just under the $197 national average. Nashville ($391), the Bay Area ($350) and Austin ($313) paid far more.
The largest deal was May’s sale of The Towers at Williams Square in Irving to Vanderbilt Office Properties, Hillwood Urban and TriPost Capital Partners, restructuring ownership that included Apollo. The price was not disclosed, per Newmark, which represented the seller.
Estein USA paid $142.9 million for the 549,170 SF Pinnacle Tower, with a $100 million acquisition loan from Goldman Sachs.
A Deep Pipeline
DFW had 3.6 million SF across 23 projects underway at the end of September. Competitive space under construction totaled 3.3 million SF, second only to Manhattan’s 3.6 million SF, and equals 1.2% of existing stock (4.2% with planned projects, behind only Miami).
The biggest project is the 800,000 SF Goldman Sachs campus in NorthEnd, a $709 million development backed by a $513.9 million JPMorgan Chase construction loan and due in early 2028. We covered Hunt Realty’s pitch for a 30-story NorthEnd tower next door last month.
Five projects totaling 302,430 SF broke ground this year, up more than 240% from the same period of 2025, while completions fell nearly 85% to four projects totaling 260,186 SF.
Leasing and Coworking
Nonprofit Mercury One signed a 172,089 SF lease in Irving for a history museum and event center, the largest new office lease in Las Colinas since 2021, per Cushman & Wakefield.
The metro has nearly 7 million SF of coworking space across 344 locations, ranking fourth nationally, according to CoworkingCafe. Flex space equals 2.5% of total office stock, in line with the national average, and Regus leads local operators at 717,809 SF, followed by VariSpace (507,878 SF) and Lucid Private Offices (465,256 SF).
Why It Matters
Falling vacancy and heavy capital show demand is real, and corporate relocations are a big part of it. Our look at the Collin County market covered how AT&T and Samsung are pulling space off the market in Plano and Frisco.
Still, a pipeline this large relative to stock means supply is a live question even as vacancy improves.
What’s Next
The test is whether leasing keeps pace with the 3.3 million SF of competitive space under way. The Goldman campus in early 2028 is the next big delivery to watch.
