- Vacancy ended September at 24.6%, 40 basis points below Q2 and over 2 points off the Q4 2024 peak, with Class A down 140 basis points and Class B down 190.
- Leasing rose from 1.80M SF in Q2 to 2.52M SF in Q3, and average asking rents climbed to $35.09 per SF from $33.34, about $3 above Q3 2023 levels.
- Construction rose by 497,000 SF to 3.48M SF, the second-largest office pipeline nationally behind Manhattan, signaling that the stretch with no deliveries may be ending.
DFW office vacancy ended September at 24.6%, down 40 basis points from the second quarter, according to a CBRE report cited by GlobeSt.
The market absorbed about 1M SF in Q3 without a single new delivery.
Get Smarter About What Matters in Texas
Subscribe to our free newsletter covering the biggest commercial real estate stories across Texas — delivered in just 5 minutes.
Recovery From the 2024 Peak
Vacancy is now more than 2 percentage points below its peak at the end of 2024. Class A vacancy slipped 140 basis points in the quarter, and Class B fell 190 basis points.
CBRE says the market has shifted from rising vacancy and occupancy losses between Q3 2023 and Q3 2026 to gradual stabilization.
Leasing and Rents Climb
Leasing volume jumped from 1.80M SF in Q2 to 2.52M SF in Q3. Far North Dallas had the strongest demand, with 733,000 SF of net move-ins.
Average asking rents rose to $35.09 per SF from $33.34 in Q2, roughly $3 higher than in Q3 2023. AT&T’s 376,000 SF renewal in Richardson/Plano was the top lease, followed by two confidential deals of 183,000 SF and 124,000 SF.
The Pipeline Is Growing
Construction increased by 497,000 SF to 3.48M SF. CBRE says only Manhattan, with 4.4M SF underway, has a larger office pipeline nationally.
That comes as national office leasing still trails its pre-2020 pace, which makes Dallas-Fort Worth’s momentum stand out.
Why It Matters
For investors, the recovery is real, but GlobeSt notes that the days without deliveries may be ending as developers build to meet demand.
Texas’ other big office market is also improving, with Houston office absorption positive for a second straight quarter.
What’s Next
Watch how much of the 3.48M SF under construction delivers in 2027 and whether leasing stays near 2.5M SF a quarter. If new supply arrives faster than absorption, the vacancy decline could stall.
