The Dallas-Fort Worth office market is back on track
- Despite a negative quarter for 3Q 2022, absorption for the year came in at over 1.8 million square feet.
- Class B space experienced annual negative absorption for the 3rd consecutive year.
- The vacancy rate rose slightly to 19.7%.
- The overall asking rental rates of $30.44 continues to be driven up by record Class A rates of $34.62.
Is Dallas Back?
The Dallas-Fort Worth office market is back on track as more companies are starting to figure out that a move to a higher-quality space might be needed to help attract new employees and get existing employees excited to come back to the office. As a result, Class A space led the market this year with over 1.5 million square feet of absorption, while Class B space was negative 208,000 square feet. This demand for Class A space continues to push the rental rates up in what was already record territory. Landlords are offering more flexible lease options for those tenants experiencing sticker shock having to renew at higher than previously negotiated rates. All in all, the office market is healthy and there are no local indications that it will slow down anytime soon.