DFW’s economic engine continues to be one of the most robust in the U.S. due to its low cost of doing business, economic diversity, and pro-business attitude. As of mid-year 2023, DFW’s total job base rose by 9.2% and hit a new peak—with office jobs having risen by 18.4% or 196,000 net new office jobs.
However, even with strong office job gains, the market saw a combination of slow leasing volume and high availability. While absorption came in flat for Q2, it remained negative for the year.
“Q2 leasing activity was similar to Q1 and the lowest activity in years, underscoring that the market is still disrupted as tenants adjust their in-office versus hybrid strategies,” noted Avison Young Senior Insight Analyst, Walter Bialas.
The market saw leasing activity total 5.9 million square feet (sf) with trophy assets outperforming market averages and almost 500,000 sf of positive absorption for 2023 through Q2.
“High-quality spaces continue to be in high demand,” stated Greg Langston, Principal and Managing Director of the firm’s Dallas office. “Tenants of all sizes seek newer Class A office space to be best positioned to recruit and retain talent, with on-site and walkable amenities in the top submarkets having the biggest draw.”
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For more information Walter Bialas, Senior Insight Analyst: +1.214.974.9749
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