Dallas-Fort Worth office market report
Q1 2024
As of early 2024, DFW’s total job base hit another new peak, rising by more than 350,000 jobs, or 9% since the pandemic recovery. Although this includes a sizable revision by the Bureau of Labor Statistics, DFW remains as one of the most robust markets in the US. In comparison, office jobs increased by 15% or 163,000 net new jobs over the period.
The BLS jobs revision also shifted year-on-year job gains considerably. In the last 12 months, DFW reportedly lost 7,700 office jobs – although has seen total growth over the last few years 30% higher than the region’s longer-term average. Even with these above average office job gains, the market saw availability for both direct and sublet space remain elevated near record levels due to the continued acceptance of remote and hybrid work. Absorption came in slightly positive the last few quarters, which suggests the market may have seen the worst and an upswing is beginning.
Absorption beginning to hold positive
DFW office absorption has edged positive the last few quarters. This is a key trend given the significant “negatives” the market suffered through since 2020.
Availability finally tops out
It looks like office space availability may have finally topped out in DFW. Even though 29.5% is close to DFW’s all-time high, it is important that it has moved slightly lower in the last few quarters. In comparison, DFW averaged around 23% during good economic periods.
Anemic leasing complicates the picture
In 2023, leasing was at 80% of its historical average of 17.3 msf. Leasing continued to be anemic in Q1, totaling 2.6 msf – 40% lower than the quarterly average.
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Get in-depth office market reports and insights from commercial real estate experts in the Greater Dallas-Fort Worth (DFW) area. Avison Young advisors look at DFW commercial real estate activities and the latest DFW statistics to provide you expert market research on the area’s office properties.
Explore different topics like the latest office market pricing trends and analysis of DFW’s current office real estate market conditions. Gain a better understanding of DFW’s office real estate outlook and stay ahead of current office space trends. Make smart decisions when it comes to investing in office properties in the Dallas-Fort Worth Metroplex competitive office real estate market. Avison Young is your trusted source for commercial real estate office market insights in Dallas-Fort Worth.
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