Dallas Real Estate Market Reports

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.

Dallas Industrial Market

The market realized 4.2 MSF of positive absorption in the third quarter of 2025, with quarterly demand outpacing supply for just the second time since the beginning of 2023. Overall rental rates have declined by 2.5% from the historical high set in mid-2024 to $9.63/SF. Year over year growth also turned negative, declining by 2.2%, marking the first time since 2017 that annual rents have contracted. The construction pipeline increased by 4.3% quarter over quarter and totaled 34.5 MSF at the end of the third quarter of 2025, marking the fourth consecutive quarter that the amount of space under construction has increased. Additionally, 38.9% of space currently under construction has been preleased, indicating that tenants are aiming to secure space early on to avoid shortages of modern, high-quality product. As of the third quarter of 2025, demand in the Dallas-Fort Worth industrial market is outpacing supply. Should this trend persist through year-end, it would mark 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 9.1%, a decline of 10 basis points quarter over quarter and 40 basis points year over year.