Dallas Office Market
Annual full-service asking rental rates increased by 3.0% quarter over quarter and 6.1% year over year to a new high of $33.16/SF. Vacancy improved by 10 basis points quarter over quarter and 40 basis points year over year in the first quarter of 2026 to 24.5%, marking its lowest level since mid-2024. For the first time in 30 years, there were no deliveries in the first quarter of 2026, while the construction pipeline inched up to 2.4 MSF, intensifying pricing pressure as demand for premium space remains strong against limited new supply. Leasing activity increased 31.7% quarter over quarter to 4.4 MSF in the first quarter of 2026, though it still marked the lowest first-quarter total since 2021. Despite this, average deal size rose by 821 SF from the prior quarter, indicating tenants are gravitating toward larger spaces.
Download Dallas Office Market Report 1Q26
Dallas Industrial Market
Positive absorption in the market increased drastically during the fourth quarter of 2025, with demand outpacing supply for the second consecutive quarter. Quarterly demand totaled 7.7 MSF, while deliveries totaled 6.7 MSF. As of the fourth quarter of 2025, overall rental rates rose to $9.87/SF, reflecting an increase of 2.2% quarter over quarter and 3.9% year over year. Despite this uptick, rents in the Dallas-Fort Worth metro remain 0.8% below the record-high set during the second quarter of 2024. The construction pipeline increased for the fifth consecutive quarter and totaled 30.9 MSF, a quarter over quarter increase of 5.1%. Additionally, 29.5% of total space currently under construction has been preleased, indicating that developers remain optimistic about strong tenant demand for newly delivered product. As of year-end 2025, demand in the Dallas-Fort Worth industrial market outpaced supply, marking the first time since 2021 that annual demand has exceeded new deliveries. This tightening balance between supply and demand has pushed the vacancy rate down to 9.2%, a decline of 10 basis points quarter over quarter and 60 basis points year over year.
Download Dallas Industrial Market Report 4Q25