Dallas Office Market
Annual full-service asking rental rates slightly declined from the historical high by 0.4% to $29.95/SF, reflecting a minimal 0.4% increase year over year. Occupancy was slightly negative, pushing overall vacancy rates to remain relatively flat, increasing by 10 basis points quarter over quarter, to 24.8%. Under-construction pipeline continued to remain steady, with 4.3 MSF in progress. Total leasing activity closed the quarter at 3.0 MSF, reflecting slowing leasing activity contributed by fewer deals being done. Leases signed averaged 4,006 SF per deal, increasing in deal size by 3.8% quarter over quarter but decreasing in deal size by 9.3% year over year.
Dallas Industrial Market
The market realized 9.0 MSF of positive absorption in the second quarter of 2024, keeping pace with quarterly absorption levels reported in 2023. Overall rental rates grew 9.4% year over year to $9.85/SF, reaching a new historical high. Construction pipeline recorded the sixth consecutive double-digit delivery quarter at 13.1 MSF, while the under-construction pipeline dwindles for the sixth consecutive quarter to 20.7 MSF. Following quarterly supply outpacing occupancies for the sixth consecutive quarter, as of the end of the second quarter of 2024, vacancy increased by 280 basis points year over year to 9.6%.
Download Dallas Industrial Market Report 2Q24