Dallas Office Market
| Average Asking Rent (Price/SF) | $28.50 |
| Vacancy Rate (%) | 23.9% |
| Net Absorption (SF) | -821,716 |
The Dallas-Fort Worth office market’s recovery slowed in the second quarter of 2022, as vacancy increased, and demand weakened. At 23.9%, vacancy in the DFW market continues to be among the highest in the nation, but still trails Houston. In the second quarter of 2022, demand took a significant hit, as occupiers gave back over 820,000 square feet of space and leasing activity decreased. To keep pace with inflation, landlords are keeping rental rates elevated, but overall rents in the DFW market remain lower than in other Sunbelt markets. In the first half of 2022, announcements for corporate relocations to the Dallas-Fort Worth metroplex are on pace with 2021 numbers. Dallas-Fort Worth ranked #1 in overall CRE Investment in 2021 and the market is on track to witness similar levels of investment this year.
Dallas Industrial Market
| Average Asking Rent (Price/SF) | $7.38 |
| Vacancy Rate (%) | 5.8% |
| Net Absorption (SF) | 8,701,478 |
The Dallas-Fort Worth industrial market strengthened in the second quarter of 2022 as several fundamentals continued to reach new highs. Demand pushed absorption to 8.7 million square feet in the second quarter of 2022, a 133.0% increase from the prior quarter. Absorption is down 33.0% from where it was one year ago when the market was tracking its highest levels on record in 2021. Net absorption kept pace with completions in the second quarter of 2022, as 8.76 million square feet of space delivered across the market. The South Dallas submarket accounted for 25.0% of the market’s demand, with 2.1 million square feet of positive net absorption. Vacancy sits at 5.8% for the second straight quarter due to balanced supply and demand in the market. Overall rental rates climbed to $7.38/SF in the second quarter of 2022, an increase of 6.1% year-over-year. Rental rates were steadily increasing prior to the pandemic but have grown 15.8% since the start of 2020.
Download Dallas Industrial Market Report 2Q22