Dallas-Fort Worth office market report

The Dallas-Fort Worth office market continued to gain traction in Q3 2025, with net absorption reaching 725,937 sf, bringing the year-to-date total to 1.6 million sf (msf). Class A and trophy assets remain the primary drivers of recovery, capturing 70% of leasing activity, with nearly 1.9 msf of absorption year-to-date. Vacancy has declined 90 basis points since its peak last year and is now at its lowest level since early 2023. 

Leasing activity rebounded sharply, totaling 4.0 msf in Q3 and surpassing the five-year post-pandemic average. However, the recovery remains bifurcated as Class B assets continue to lag, recording negative net absorption year-to-date despite leasing gains.

New construction remains limited, with just over 2.0 msf underway, most of it pre-leased, suggesting future supply constraints. Asking rents hit a record high, led by trophy assets. While fundamentals are gradually improving, a full recovery will depend on sustained leasing momentum and strong office job growth into 2026.