Dallas Office Market
Annual full-service asking rental rates increased to historical high of $29.49/SF, a 2.0% increase year over year. Occupancy declined for the fourth consecutive quarter, pushing overall vacancy rates to increase by 150 basis points year over year, to 24.3%. Under-construction pipeline continued to remain steady, with 2.9 MSF in progress. Total leasing activity closed the quarter at 3.1 MSF, reflecting slowing leasing activity contributed by smaller deals being done. Leases signed averaged 4,309 SF per deal, declining in deal size by 14.1% quarter over quarter and 20.2% year over year.
Dallas Industrial Market
The market realized 6.6 MSF of positive absorption in the third quarter of 2023, bringing year-to-date totals to 25.1 MSF. Overall rental rates grew 13.9% year over year to $8.99/SF, reaching a new historical high. Construction pipeline recorded the third consecutive double-digit delivery quarter at 16.3 MSF, with another 50.8 MSF under construction. Following yearly supply outpacing demand for the third consecutive quarter, as of the end of the third quarter of 2023, vacancy increased by 230 basis points year over year to 7.9%.
Download Dallas Industrial Market Report 3Q23