The fight to quality in office couldn't be truer than in Dallas/Fort Worth. That was highlighted by negative absorption reaching 503,328 square feet in the second quarter, a market report from CBRE shows.
That came even as Class A offices in the city enjoyed positive demand of 140,000 square feet, which marked the third straight quarter the property type was in green territory. However, low-quality properties spoiled a potential win.
"Those gains were eroded by new vacancies in Class B product, which totaled -822,000 sq. ft. in quarterly net absorption," CBRE explained.
"Almost half of the negative net absorption in Q2 2025 stemmed from one large new vacancy in the Alliance district of North Fort Worth; another 125,000 sq. ft. came from a single tenant move-out in Arlington. Over the last four quarters Class A net absorption has totaled 321,990 sq. ft. while Class B net absorption has totaled -1.6 million sq. ft. during the same timeframe."
The trend was similar in vacancies as well, which saw a "marginal uptick" to 27.6 percent, according to CBRE. Class A assets in the category showed resilience with rates declining, defying the broader trend in Dallas/Fort Worth.
Rents stagnated quarter-over-quarter but increased 1.4 percent year-over-year to $22.16 per square foot NNN. Class A properties again outperformed with 1.7 percent growth in the category.
"Offices that boast a prime location and premium amenities continue to attract more users than value-add product," CBRE said.
As far as leasing goes, larger deals (10,000 square feet or larger) totaled 1.2 million square feet, which was "notably lower" than the total posted 12 months ago. Marsh & McLennan Agency commanded the largest deal with its 92,977 square foot new lease. That was followed by
Kemper Insurance Companies and Carrington, Coleman, Sloman & Blumenthal, which inked signings for 67,279 square feet and 50,802 square feet, respectively.
No new office deliveries were recorded in the second quarter — but 2.7 million square feet of product was under construction.
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