(To read more on the debt and equity markets, click here.)

DALLAS-Vacancy rates in the Dallas/Fort Worth metropolitan area are continuing a yearlong trend of slow improvements, shows a recent third-quarter office report by CB Richard Ellis. The overall vacancy rate at the end of the quarter stands at 21.18%, a “modest” decline of 0.23% from the second quarter vacancy rate of 21.18%, the brokerage firm notes.

Class A space shows a vacancy rate of 19.37%, seven basis points lower than in the second quarter. Class B space ended the quarter with a vacancy rate of 22.99%, while class C space stood at 21.58%.

The Fort Worth Central Business District and the Preston Center submarkets have the lowest vacancy with rate s of 4.97% and 8.94%, respectively, the report notes. Fort Worth has a total of 8.7 million sf in 42 building and Preston has 32 buildings with a total of 3.6 million sf, tracked by CBRE.

The Lewisville/Denton office submarket, with 56 buildings totaling 3.5 million sf, has the highest vacancy rate in the Metroplex at 32.97%. Although still high, that submarket is showing an improvement; during the second quarter the vacancy rate was at 35.55%.

In the third quarter, the overall market absorbed 218,950 sf. “Although still positive, it pales in comparison to the second-quarter absorption of 1.77 million sf,” the report notes. Another way to look at it: Overall absorption fell 87.1% from the second quarter. Class A space absorbed 111,502 sf in the third quarter, a drop from the 791,267 sf in the second quarter; class B space absorbed 111,238 sf, substantially less than the 1.01 million sf absorbed in the second quarter; and class C space showed negative absorption of 3,790 sf during the quarter.

Meanwhile, average lease rates have remained flat at $17.32 per sf, virtually unchanged form $17.36 in the second quarter. Class A space, on average, leased for $19.58 per sf; class B rates averaged $15.68 per sf; and class C space averaged $13.06 per sf, according to CBRE.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.