Avison Young releases Fourth Quarter 2025 DFW Office Market Report

Dallas-Fort Worth, TX – Avison Young, a global real estate advisory firm, today released its Fourth Quarter 2025 Office Market Report for Dallas-Fort Worth (DFW). The DFW office market closed 2025 with its strongest performance since 2019, supported by robust net absorption, rising leasing activity, and continued tenant preference for trophy and Class A office space.

Net absorption remained solid in the fourth quarter, totaling 698,000 square feet (sf) and bringing annual absorption to 2.2 million sf (msf). Recovery activity remained heavily concentrated in Class A assets, which captured 2.7 msf of absorption in 2025, particularly in core submarkets including Upper Tollway/West Plano, Richardson/Plano, Allen–McKinney, and Uptown. This sustained flight-to-quality reflects increasing tenant demand for modern, amenity-rich environments viewed as critical for attracting and retaining talent.

Greg Langston, Principal and Managing Director at Avison Young stated, “Class A and trophy assets continue to drive positive absorption, and the strength of leasing in 2025 underscores that the DFW office market recovery is gaining meaningful traction.”

The market’s strengthening fundamentals contributed to declining vacancy, with overall vacancy falling to 24.7%, its lowest level in two and a half years, and down 150 basis points from its peak in late 2024. Positive absorption remained concentrated in trophy and Class A assets, fueled by expansions and relocations from major financial institutions, alongside steady corporate demand amid limited new supply.

Leasing activity totaled 2.7 msf in the fourth quarter and 14.8 msf for 2025, with trophy and Class A properties accounting for 70% of all leasing activity in 2025. While Class A occupancy rose 1.8% year-over-year and trophy occupancy remained flat, Class B properties continued to struggle, experiencing a 1.1% decline in occupancy year-over-year.

Rents climbed alongside improving demand. Overall asking rents increased 2.4% year-over-year to an all-time high of $36.14 per sf, led by trophy assets, where rents surged 10.6% to $63.66 per sf. Class A rents grew 6.2%, while Class B rents remained relatively stable with a 1.8% increase.

DFW’s premier submarkets gained national recognition as Uptown and Preston Center ranked among the Top 25 priciest office submarkets in the country and placed within the Top Five nationally for percentage rent growth compared to pre-pandemic levels. The rent growth was driven by new, highly amenitized product and heightened interest from financial firms expanding or relocating to Dallas as part of the emerging ‘Y’all Street’ trend.

Recent investment and leasing activity further reinforced confidence in the market, with notable office transactions and continued interest in high-quality assets. With 2025 marking the highest annual net absorption since 2019, the DFW office market enters 2026 with improving fundamentals and continued momentum.