Avison Young releases second quarter 2026 DFW office market report

Dallas-Fort Worth, TX – Avison Young, a global real estate advisory firm, today released its second Quarter 2026 Office Market Report for Dallas-Fort Worth (DFW). The office market continued its recovery through the first half of 2026, posting strong leasing activity and positive net absorption as occupiers increasingly gravitated toward high-quality office environments. The DFW office market recorded approximately 1.1 million square feet (msf) of positive net absorption and 3.5 msf of leasing activity in the second quarter, underscoring the market’s sustained momentum.

In the first half of 2026, trophy properties posted 323,000 sf of positive absorption, while Class A properties added 317,000 sf, highlighting the continued flight-to-quality among tenants.

Demand remains heavily concentrated in the region’s top-performing assets, with trophy and Class A buildings capturing 73% of all leasing activity. As occupiers compete for a shrinking supply of premium office space, availability within DFW’s most desirable buildings continues to tighten, supporting rental rate growth and strengthening landlord leverage across the metroplex’s strongest submarkets.

“Dallas–Fort Worth occupiers view office space as a strategic business tool for recruiting, retention and collaboration,” said Noel Hutcheson, Principal and Managing Director at Avison Young. “Companies continue to prioritize workplace quality, employee experience and access to talent, which is driving demand toward trophy and Class A buildings and property locations. As premium space becomes more limited in key submarkets, tenants are making real estate decisions earlier and with a strategic outlook.”

While vacancy remains above historical norms, conditions continue to improve. Overall vacancy declined to 25.3%, a decrease of 140 basis points from its late-2024 peak, reflecting steady absorption and renewed tenant demand.

Rental rates have also maintained upward momentum. Since 2019, office rents across DFW have increased 36% cumulatively, representing average annual growth of 4.9%. Tier 1 assets, including trophy and A+ buildings, have driven much of that increase, with rents rising 41% since the pre-pandemic period.