Dallas Office Market
Annual full-service asking rental rates increased by 0.3% quarter over quarter and 4.4% year over year to a new high of $32.01/SF. Vacancy improved year over year by 20 basis points in the fourth quarter of 2025 to 24.6%, reflecting the second consecutive quarter without an increase. The under-construction pipeline rose to 2.4 MSF, increasing by 23.2% quarter over quarter, as two new projects entered the pipeline, including the largest 325,000-SF Fields West. While average lease sizes moderated to 3,792 SF per deal in the fourth quarter of 2025—the smallest since the first quarter of 2021—total leasing activity remained resilient. With 16.2 MSF signed in 2025, the market posted its fourth-strongest annual leasing volume over the past six years, underscoring sustained tenant demand across the region.
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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