- Dallas office market posts positive net absorption of 332 KSF in Q1 2026.
- Vacancy remains high at 26.8% despite steady leasing activity.
- Class A office rents average $42.20 PSF, with overall rents at $36.51 PSF.
- New office construction slows, with 1.57 MSF underway and 83.3% preleased.
Positive Momentum Emerges
The Dallas-Fort Worth office market is starting to stabilize after years of volatility, according to new JLL research. D Magazine reports that demand for office space is rising.
Net absorption reached 332 KSF in the first quarter. Major tenant move-ins and expansions across several submarkets drove that growth. Meanwhile, leasing volume remains steady as occupiers favor high-end, amenity-rich office space.
Vacancy Stays Elevated
Despite the uptick in office demand, the region’s vacancy rate remains elevated at 26.8%. Hybrid work trends and an ongoing reassessment of space needs continue to limit overall requirements, while companies favor newer buildings in prime locations.
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Rents Rise, Construction Slows
Rents are climbing fastest in Class A offices, especially in sought-after submarkets like Uptown and Preston Center. The average asking rate for Class A space hit $42.20 PSF, with overall direct rents at $36.51 PSF. Developers remain cautious: only 1.57 MSF of new office product is under construction across Dallas-Fort Worth, and it is 83.3% preleased. This caution reflects a broader shift across property types, as developers pull back on new starts while demand patterns reset.
Outlook Tied to Growth
The Dallas-Fort Worth office market’s long-term prospects rest on the region’s strong fundamentals, including robust population growth and ongoing corporate relocations. In 2025, Dallas-Fort Worth recorded the second-highest population increase in the nation, underscoring the area’s resilience and appeal for office investors and users alike.
