Dallas-Fort Worth office market report

Q2 2025

The Dallas-Fort Worth office market continues its recovery trajectory. Net absorption has remained in positive territory, which has helped vacancy and availability to decline since hitting its peak. While leasing activity gained momentum last year, the first half of 2025 saw a slowdown, primarily due to macroeconomic uncertainty. 

New multi-tenant construction has largely paused, a consequence of elevated construction costs, high interest rates, and evolving office utilization patterns. This limited new supply could impact future leasing and absorption, as fewer premium options become available for tenants seeking high-quality buildings in amenity-rich locations.

Overall, the first half of 2025 showed promising signs of a recovery. However, a full return to normal market fundamentals will take more time, especially as average lease transactions are trending smaller. A sustained recovery will ultimately hinge on stronger leasing momentum through the remainder of 2025.

472k sf    

Positive net absorption continues

Total net absorption continued its positive run, largely driven by the class A sector absorbing 472k sf in the second quarter. Year-to-date absorption now stands at 1.3 msf, marking the start of a new stable cycle after significant occupancy losses experienced from 2020-2023.
25.3%    

Vacancy remains high but improving

Vacancy has declined 80 basis points since hitting its peak late last year. Availability has also dropped 2.5 percentage points since its 2023 peak. 
3.5 msf    

Leasing activity slower than normal

While deals continue to be signed at a steady pace, leasing momentum has slowed compared to last year. Leasing activity totaled 3.5 msf in the second quarter of 2025, bringing the year-to-date total to 7.7 msf - an 18.5% decline from its 10-year first-half average. 

Your source for the latest Dallas-Fort Worth office market reports

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.

Get the latest Dallas-Fort Worth office market reports right in your inbox

Email Preferences*

Avison Young needs the contact information you provide to us to contact you about our services. You may unsubscribe from these communications at any time. For information on how to unsubscribe, as well as our privacy practices and commitment to protecting your privacy, check out our Privacy Policy.