Dallas-Fort Worth's office sector is off to a hot start in 2025 — and the momentum is expected to continue.
In the first three months of the year, leasing activity hit 3.5 million square feet, up by 1.3 million square feet from the previous 12 months, according to Savills.
The largest deal in the market was recorded by Toyota Financial Services, which secured a new space that spans 241,452 square feet in the North Dallas Corridor. Geico was next with 165,107 square feet in the Richardson Telecom Corridor, followed by WeWork, which secured 154,546 square feet for Amazon in West LBJ.
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"Overall demand for office space within the Dallas-Fort Worth market appears healthy, with the market observing multiple deals greater than 100,000 square feet," Savills said.
Some other key office fundamentals improved. For example, asking rent rates are up by an average of 7.6 percent to $32.88 per square foot. Uptown commands the highest rates, which are nearly double Dallas-Fort Worth's median, at $60.49 per square foot. The lowest are in the Northeast Fort Worth submarket, at $16.01 per square foot.
Availability has plunged by 180 basis points to 28.1 percent. However, as we look ahead, Savills expects the category to tick up as 4.5 million square feet of Class A space is set to hit the market over the next three years. In addition, concessions are forecasted to remain elevated. However, Savills remains bullish about deal-making.
"Leasing activity outlook is optimistic and is expected to outperform the five-year quarterly average as long as the region's economy remains strong," Savills wrote.
The Dallas-Fort Worth area saw a two percent population gain in 2024, with a three percent unemployment rate that overperforms other major metro areas in the nation, according to Savills.
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Anthony Russo
Anthony Russo has been contributing to GlobeSt. since July 2024. Along with CRE, his financial background expands to capital markets, the economy, and consumer issues. Previously, he has written for CapitalWatch and was a senior reporter for The US Sun.
